General Motors' Power Battery Capacity Surpasses Tesla

According to the latest survey data from BNEF, General Motors has surpassed Tesla in domestic battery capacity in the US. Notably, this milestone was achieved during the ramp-up stage. GM's Ultium Cells super factory, located in the suburbs of Nashville, Tennessee, with a total investment of $2.3 billion, is currently operating at partial capacity. The factory covers an area of 280,000 m² (equivalent to five standard football fields) and has a designed capacity of producing 5,000 battery cells per hour, operating 24/7.

The Lordstown, Ohio factory, a joint venture between General Motors and LG Energy Solution, has achieved mass production. These two production sites currently provide battery systems for popular car models such as the Chevrolet Equinox EV and the Cadillac LYRIQ. Industry analysis suggests that the key to GM's increased market acceptance of EVs lies in its pricing strategy, particularly the Equinox EV model with a starting price of $34,995.

At a recent BNEF summit, Kurt Kelty, GM's Vice President of Battery and Powertrain Systems (formerly Tesla's battery technology head), disclosed that through material innovation and process optimization, GM has achieved a battery cost reduction of $60/kWh in 2023. It is expected that by 2025, through capacity expansion and yield improvement, an additional cost reduction of $30/kWh can be achieved. If the target is met, its battery cost will drop to $100/kWh, a 50% decrease from 2023, and potentially lower than Tesla's level. For reference, the industry average cost in the Chinese market is $94/kWh.

To narrow this gap, General Motors is planning to shift from current battery modules to prismatic battery cells. Last year, GM established a $3.5 billion joint venture with Samsung SDI, and the two parties will build a 640-acre factory in New Carlisle, Indiana, dedicated to producing such prismatic battery cells. Kelty explained that these brick-shaped cells can achieve perfect zero-gap alignment, reducing the weight of EVs and increasing driving range.

The new factory was originally scheduled to start production next year but has now been postponed to 2027. Even so, GM's electrification strategy has already begun, and its scale, scope, and investment are too significant to turn back. Although political and regulatory hurdles may cause short-term obstacles, GM's long-term commitment to electrification is almost certain.