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Home >Companies >News >General Motors to boost its electric vehicle spending, adds $7 bn more

General Motors announced late last week that it would spend $27 billion on autonomous and wholly electric vehicles through 2025. This notes an increase of $7 billion from the Detroit automaker's initial announcement earlier in March 2020. This 35% increase from the earlier investment plan is sure to assist General Motors reach its lofty goal of releasing 30 new electric vehicles by 2025.

The majority of General Motors’ new vehicles are set to feature the company’s latest Ultium batteries. These batteries are unique in the automobile industry due to its pouch-style cells being able to be stacked horizontally or vertically inside the battery pack. Engineers are thus able to optimise the layout and energy storage for each vehicle design.

With ranges of up to 450 miles, which goes even further than Tesla’s Model S Long Range Plus unveiled in June 2020 with a 402-mile range, General Motors’ numbers surrounding its electric future have improved in many regards. General Motors expects this level of efficiency to bring the price of its electric vehicles in-line with the company’s current gas-powered offerings by the middle of this decade.

There is a noticeable pressure on carmakers to make their fleet more environmentally friendly. Last week saw the United Kingdom ban the sale of new petrol and diesel-fuelled cars from 2030. The inference would be that there is going to be increasingly fierce competition in the electric vehicle space. As things stand, General Motors' spending on the electric vehicles front is dwarfed by both Volkswagen and Tesla. It is interesting to note that all three carmakers are developing their own native batteries as opposed to buying them from third-party suppliers.

Recently, BlackRock, the world’s largest investment manager, said that this year saw investors allocating more than twice as much money in its funds that invest in climate change. BlackRock’s CEO, Larry Fink, commented on whether and how companies approach social, governance, and environmental issues has become imperative for investors.

Currently, electric vehicles only make up approximately 2% of worldwide car sales. However, as pressures towards greener products increase, this market is predicted to grow bigger. Electric vehicles are primed to become the new normal as environmental concerns increase and continue to be taken more seriously by world leaders. The question then falls on autonomous cars and how big a money pit that will prove to be due to the insurance, regulatory, moral, and legal hurdles involved in their usage.

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