General Motors reported noticeable progress regarding its Ultium EV platform on Tuesday, as production increases, battery costs decrease and profitability improves. The company's long-promised, much delayed EV assault may finally begin en masse.
According to GM, battery module production—once a bottleneck—has increased by 300% over the last six months. The growth is accompanied by "very good" quality results, according to the report. The company expects to double production again before the end of the summer.
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GM's Ultium EV sales increases
In Q1 2024, General Motors sold 9,385 Ultium-based electric vehicles (compared to just 970 a year earlier and almost 7,000 in Q4 2023). It's been a long, hard ramp for GM, but the company is finally starting to build a large number of Ultium vehicles per quarter.
With more battery modules available, GM will be able to produce more Ultium EVs. The company did not project a specific number. In Q1 2024, GM's Ultium EV sales set a sales record: 9,385 in a quarter. It seems possible that within one or two quarters the company might be able to move to 20,000-30,000 Ultium EVs per quarter.
GM reported that the cost of battery cells came down significantly as its Ultium Cells joint venture plant in Ohio ramped up production. Lower raw material prices in recent months helped too.
The second Ultium Cells battery cell factory was opened earlier this year in Tennessee and is ramping production "even faster by applying lessons learned in Ohio." By combining higher production scale and lower battery costs, GM says it realized year-over-year improvements in profitability.
GM's best-selling Ultium EV model continues to be the Cadillac Lyriq with a record 5,800 sales in Q1 and a very interesting 16.4% share of overall Cadillac sales (about 20% of Cadillac's retail sales). The next big thing for GM will be the market launch of the Chevrolet Equinox EV, which is promised to be the most affordable EV with more than 300 miles of range. The model will enter the market in mid-2024.
In the same timeframe, we will see the top-of-the-line Chevrolet Silverado EV RST pickup with up to 440 miles of range. The model will be followed by the GMC Sierra EV Denali cousin.
On the horizon are also three Cadillac models—Cadillac Optiq and the luxurious Cadillac Celestiq, as well as the Cadillac Escalade IQ. GM also seems hopeful about the Chevrolet Blazer EV, which was affected by software issues but then got an attractive price cut.
