DETROIT (Reuters) – General Motors Co is working with “all the best startups” on next-generation EV battery technology as part of a $ 27 billion initiative to match or surpass Tesla Inc. in the electric vehicle sector , Which plans to increase production capacity for its new Ultium battery system, an executive said on Monday.
“We’re partnering with some great companies on electric vehicles and batteries, including Honda Motor and LG Chem,” said Doug Parks, GM’s executive vice president of global product development. But “we’re also looking outside the company for startups to get on the edge of that learning curve.”
Park, speaking at an investor conference, GM has continued to build on its relationship with Honda, with which the US automaker is jointly developing several future electric vehicles.
“There’s an opportunity for more,” Parks said. We can extend that relationship to other segments, including sharing combustion engine vehicles and platforms with Honda.
GM chief executive Mary Bara said nearly a year ago that the automaker increased its spending budget on electric and automatic vehicles from $ 20 billion to $ 27 billion through 2025.
Parks said the $ 7 billion increase is tied to spending on additional production capacity for the Ultium battery, which is set to go into production in Ohio next year in a $ 2.3 billion joint venture with LG Chem.
Park said that with all the electric vehicles GM has planned for North America – some 20 models by 2025 – “we need more capacity”. “So more investment is coming after the initial wave in Ohio.”
Industry leader Tesla sold just under 500,000 EVs globally last year.
Reporting by Paul Lennert in Detroit; Editing by Matthew Lewis