GM Unveils Game-Changing EV Battery Technology for Future Vehicles
General Motors (GM) is preparing to make significant advancements in electric vehicle (EV) battery technology. The company announced plans for a new lithium manganese-rich (LMR) battery that promises to lower costs and enhance the performance of its electric trucks and SUVs. If successful, GM aims to be the first automaker to introduce LMR prismatic battery cells to the market by 2028.
Innovative Battery Design for EVs
These cutting-edge batteries will be utilized in GM’s full-size electric trucks and SUVs, including the Chevrolet Silverado EV and Cadillac Escalade IQ. The LMR chemistry replaces expensive materials such as nickel and cobalt with more accessible and cost-effective manganese. This change not only reduces raw material expenses but may also enhance the range and weight efficiency of GM’s EV lineup.
GM claims that LMR batteries will provide 33% higher energy density compared to current lithium iron phosphate (LFP) cells, all while keeping costs in check. This means drivers could travel longer distances per charge without significant increases in vehicle prices.
Production Timeline in Place
Production plans are underway. Ultium Cells, a joint venture between GM and LG Energy Solution, anticipates starting preproduction in late 2027 and moving into full commercial production by 2028. This initiative is in line with GM’s broader strategy to expand its Ultium platform and enhance EV profitability.
Ford’s Competitive Edge
GM is not alone in its pursuit of battery innovation. Ford (F) is also in the race, having rolled out plans for its own LMR battery technology at its Ion Park R&D center in Michigan. The automaker has already begun pilot production of its second-generation cells, aiming to introduce LMR-powered EVs before the decade concludes.
Ford views LMR technology as essential for achieving longer-range, lower-cost EVs, which are crucial for promoting mass-market adoption.
Tesla’s Early Initiatives
Tesla (TSLA) took initial steps in this area as well. CEO Elon Musk introduced the concept of high-manganese batteries during Tesla’s “Battery Day” in 2020. At that time, he expressed intention to develop cathodes containing one-third manganese to optimize nickel usage. While Tesla holds patents for LMR technology, it has yet to announce definitive production plans.
As GM looks set to lead the market with its LMR batteries, Ford is a close contender, while Tesla’s earlier concepts remain without a clear timetable.
The Zacks Rundown for General Motors
Year-to-date, shares of General Motors have decreased by approximately 6%, which is better than the industry average decline of 13%.
Image Source: Zacks Investment Research
In terms of valuation, GM trades at a forward price-to-earnings ratio of 5.28, significantly lower than the industry average. Its current Value Score stands at A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GM’s 2025 sales and EPS suggests a year-over-year decline of 6% and 12%, respectively. Over the past 30 days, estimates for the current and next quarter, as well as for 2025 and 2026, have trended downward.
Image Source: Zacks Investment Research
Currently, GM holds a Zacks Rank #5 (Strong Sell).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
