Just yesterday, General Motors (GM) dropped thrilling news about plans to bring a new EV battery technology to market. They’re passionate that this innovation will change their industry. The latest game-changing innovation, LMR, is about to shake up the automotive world. It aims for cost reduction and increases profit margins for GM’s biggest electric SUVs and pickups. With this final brave step, the automaker is definitely well on its way of becoming a key player in the cut-throat EV world.
Additionally, the new LMR technology will cut the cost of battery packs in half. Today, these packs cost an average of around $125 per kilowatt-hour (kWh). GM moved the dial last year on cutting battery costs by $60 per kWh. This tremendous accomplishment has resulted in the cool 20% decrease of the average battery pack costs for EVs, bringing them down to $115 per kWh in 2024. This strategic move is in concert with GM’s stated objective of creating a future where electric vehicles are more accessible and financially attractive to consumers.
The new LMR battery packs will feature 50% fewer components than existing models. This design reduces costs through easier and more efficient production. You’ll notice a much larger decrease in the module or cell case count inside the actual battery packs. This adjustment will have a profound increase on efficiency. This new technology, also called CTC, will add to GM’s new pouch cell batteries — formerly known as Ultium. It will complement the forthcoming lithium iron phosphate (LFP) prismatic battery cells for the smaller, entry-level EVs.
According to GM Vice President of Battery, Propulsion and Sustainability Kurt Kelty, “LMR unlocks the premium range and performance at an affordable cost.” He added that this new innovation marks a major transition in the world of batteries. Kelty further explained that the LMR technology is best-fit for electric trucks, calling it “a game-changing battery.”
GM has put a lot of good faith – and money – into this commitment, already investing billions of dollars in electrification. In the last year, CEO Mary Barra has laid out the most ambitious plans of any legacy automaker. She promised that GM would only sell electric vehicles by 2035. From now through 2025, the automaker plans to put a jaw-dropping $35 billion into its electrification push.
The innovations battery technology has seen in recent years are thrilling. EV sales reached variable profit positive in the first quarter of this year. These vehicles generated sufficient farebox revenue to pay off their capital cost. That’s a pretty big deal because it indicates a very positive financial trajectory for GM’s electric products.
The pace of change within the automotive industry today is incredible. That innovation, along with GM’s savvy new electric vehicle architecture, puts the company squarely in contention for the EV race. The introduction of LMR batteries could not only enhance the performance and affordability of GM’s electric SUVs and trucks but solidify the company’s role as a pioneer in sustainable transportation solutions.