GM had originally announced that it would devote $20 billion to work on developing more electric vehicles and even fully autonomous vehicles within the next five years. But they’ve now decided to increase that number, pledging a total of $27 billion through 2025 to turn not just a small portion of their vehicles to electric, but approximately 40%.
The new pledge includes not only cars but trucks and SUVs that will be turned to fully electric, so that the company can continue to work its way into the green energy space. The company is even creating an entirely new division, EV Growth Operations, which will be responsible for creating the new electric vehicles, which will be entirely new models and will require advanced software and services.
The company hopes that they will be selling 40% of their models in electric form in the US at the end of the five year period, which will include models from each of their passenger vehicle brands. But they will also be accelerating their development timeframe, which means that some of their other vehicles are going to get into the showroom and onto the road much sooner than originally planned.
It seems increased regulations and restrictions are leading the company to make this new decision, including regulations in California prohibiting the sale of fuel-burning vehicles by the year 2035. Other states and smaller municipalities are starting to take up a similar mantle and fuel-burning vehicles may soon be considered entirely obsolete.
With this and more ahead of them, GM is looking to not only produce more electric vehicles to stay ahead of the curve, but also to improve the technology that they have available. This includes improving the new battery technology, the Ultium battery, which will now allow for 450 miles of travel rather than the 400 previously expected. However this will depend on the specific battery package in the vehicle.
What’s proving even better for GM and will prove better for future buyers of these electric vehicles is that the new battery technology, made possible in second-generation batteries, is actually 60% cheaper as well. Expensive batteries and systems were part of what drove up the cost of electric vehicles and with this new development it just might be possible for GM to lower their costs.
There’s no telling where the company will go over the next five years, but we do know it’s shifting toward electric.