General Motors (GM) is making significant changes to its electric vehicle (EV) strategy, including the decision to drop the “Ultium” name that it has spent years promoting for its battery technology. This move signals a shift in how the automaker plans to approach its EV offerings amidst changing market dynamics and growing competition.
The End of the Ultium Era
After investing millions in marketing, including high-profile Super Bowl ads in 2021 and 2022, GM has confirmed that it will discontinue using the “Ultium” branding for its electric vehicle batteries and supporting technologies. While the batteries and associated technologies will still be in use, the name will be retired starting in North America. This change comes as GM reassesses its EV battery operations and focuses on lowering battery costs while diversifying its battery chemistries .
Despite a reported 60% year-over-year increase in EV sales in the third quarter, GM’s EVs still accounted for only 4.9% of total sales . CEO Mary Barra confirmed that the automaker is on track to produce approximately 200,000 EVs in North America this year, down from earlier estimates of 250,000 to 300,000 units. This reduction reflects the slower-than-expected adoption of electric vehicles and the need for a more adaptable strategy .
GM is moving away from its original Ultium pouch cells, produced with LG, toward a more versatile approach that includes prismatic cells through a new partnership with Samsung SDI. This strategy emphasizes a multi-chemistry and multi-supplier model, enabling GM to optimize battery types for specific vehicle requirements .
Rethinking Production Plans
The company is also reevaluating its plans for an all-electric vehicle plant in Orion Township, Michigan, signaling a more cautious approach to future production . GM has one operational EV-exclusive plant, Factory Zero in Detroit, but the timeline for additional facilities will extend to better align with consumer demand .
As GM navigates the challenges of the evolving EV market, the decision to drop the Ultium name reflects a broader reassessment of its strategies. By diversifying its battery technology and adapting its production plans, GM aims to better meet the needs of an increasingly competitive landscape in the electric vehicle sector.
