GM's EV Cost-Cutting Plan Goes Beyond Batteries, CEO Says

"General Motors is working to reduce the cost of its electric vehicles, beyond just using cheaper lithium-ion batteries, the automaker said Tuesday during its fourth quarter and full-year 2025 earnings call. The update comes just as the automaker booked over $7 billion in charges related to cutting down its EV ambitions last year, which includes things like contract cancellation fees and converting its Orion, Michigan, EV assembly plant for the production of full-size gas trucks and SUVs."

"Cost remains one of the biggest barriers to broader EV adoption. While more affordable models are finally on the horizon, most EVs sold in the U.S. today still cost more than comparable gas cars. Automakers have realized that demand is strongest at the lower end of the market, where the premium for going electric is often lower. As a result, the focus has shifted toward cutting costs in every possible way."

"While GM is on track to introduce cheaper battery chemistries such as lithium manganese rich (LMR) and lithium iron phosphate (LFP), it's taking more steps to bring EV prices down. The investments we're making now will be very much focused on cost reduction, General Motors Chair and CEO Mary Barra said during the earnings call. We have teams on each of our EVs to continue to take costs out beyond the battery, Barra added."

General Motors is pursuing multiple strategies to lower electric vehicle prices beyond cheaper lithium-ion cells, including simpler electrical architectures, less wiring, and a software-defined vehicle platform. The company recorded over $7 billion in charges after scaling back EV plans, including contract cancellation fees and retooling the Orion, Michigan plant for full-size gas trucks and SUVs. Market demand is strongest for lower-priced EVs where the premium to switch is smaller, so GM is prioritizing cost reductions across its lineup. GM plans to introduce cheaper chemistries like lithium manganese rich (LMR) and lithium iron phosphate (LFP) and will launch a second-generation software-defined vehicle architecture in 2028.

Read at insideevs.com