Weekly News

GM Q2 Profits Surge and Bolt Making a Comeback

General Motors reported a 52% increase in Q2 net income, reaching $2.5 billion. This success comes from robust vehicle sales and cost-cutting measures, even as GM shouldered part of the expense of the Chevrolet Bolt recall due to battery manufacturing defects.

As part of its cost-saving strategy, GM found an additional $1 billion on top of the $2 billion it promised earlier in the year. The company achieved this by streamlining administrative costs, reducing salaried employee expenses, and simplifying vehicle manufacturing processes.

This robust performance led GM to revise its full-year guidance for the second time, now predicting a net income between $9.3 billion and $10.7 billion, up from the previously projected $8.4 billion to $9.9 billion.

Despite the Chevrolet Bolt recall's significant impact and previous talks of ending production, CEO Mary Barra confirmed the development of a new Bolt on its Ultium platform. The upcoming model will continue to be affordable while boasting superior range with technology constructed on GM’s latest platform, which could reportedly result in 40% cost savings from the current model.

GM successfully reached its internal target of producing 50,000 EVs in North America during H1 2023 and aims to manufacture approximately 100,000 EVs in H2. The company is committed to exclusively producing electric passenger vehicles by 2035, aiming for profitable EV production by 2025.

Volkswagen Reports 48% Rise in EV Deliveries

Volkswagen delivered around 322,000 EVs in the first half of 2023, marking a 48% surge compared to the same period last year. EVs now represent 7.4% of total Volkswagen deliveries, up from 5.6% in H1 2022.

This progress comes amidst intensifying competition, particularly in China, where Volkswagen managed to grow its sales by 18% year-over-year. The company has even established strategic partnerships with local EV manufacturers such as SAIC Motors and XPeng Motors to boost its presence in the region.

Despite the encouraging H1 performance, Volkswagen has revised its overall delivery guidance for the year, lowering it by about 500,000 units. The automaker attributed this adjustment to a shift in pressures from semiconductor shortages to transportation and logistics delays.

Continued Spike in Battery Facility Investments in the U.S.

Two significant announcements this week have underlined the ramping up of domestic battery production capacity to keep pace with escalating demand for EVs.

California-based Enevate and South Korea's JR Energy Solution have unveiled plans to establish a battery cell electrode manufacturing facility in the United States. The facility, which has an anticipated annual production capacity of up to 6 GWh of annual paired electrode capacity (6 GWh anode + 6 GWh cathode), will manufacture custom lithium-ion battery cell electrodes. These electrodes will be used to accelerate the market penetration of Enevate’s revolutionary fast-charge battery technology for existing and new customers. Customers will also be able to develop electrodes and battery cells using Enevate’s unique silicon-dominant anode battery technology, which claims to offer charging speeds up to 10 times faster than conventional lithium-ion batteries.

Separately, Stellantis and Samsung SDI have outlined their intention to construct a second joint-venture battery plant in the U.S., with production slated to commence in 2027. While the precise location of the facility is still under consideration, the plant is set to have an initial production capacity of 34 GWh. The joint venture is part of Stellantis' drive to secure approximately 400 GWh of battery capacity to underpin its target of reaching 100% electric passenger car sales in Europe and a 50% car and light truck electric mix in the U.S. by 2030.

Education Corner

GM's Ultium Platform

The Ultium Platform is poised to revolutionize GM’s approach to electrification, aiming to enable its vision of EVs for everyone. Co-developed with LG Energy Solution, this flexible EV platform can power any GM vehicle, providing unmatched adaptability.

In terms of manufacturing, Ultium battery cells will be made in new U.S. facilities, aiming for more than 100 GWh of annual production. A proprietary mix of nickel, cobalt, manganese, and aluminum (NCMA) in the battery cathodes increases range while reducing reliance on expensive cobalt by 70%. This leads to lower production costs and boosts resources for further innovation.

The platform also integrates the battery enclosure into the vehicle’s chassis, enhancing safety and vehicle handling. Additionally, it supports faster charging with most vehicles having 400-volt battery packs and up to 200-kW DC fast charging capability.

The Ultium platform incorporates a nearly entirely wireless battery management system, significantly reducing weight and enhancing efficiency. It also allows easy reconfiguration of batteries from small to large, using the same communication protocol.

GM is also partnering with Li-Cycle to recycle material scrap from battery cell manufacturing, emphasizing sustainability.