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GM plans to increase investments in electric vehicles by 35 percent from earlier plans over the next five years to $35 billion as the company eyes one of the top spots in this market, Reuters has reported, citing unnamed sources familiar with the matter.
The automaker had already stated in November 2020 its ambition to lead in the EV race with higher investments and 30 new global EV launches by 2025. The company plans to have 40 percent of the models it offers in its home market plug-in EVs by 2025.
Then, in January this year, the auto industry major announced plans to become an all-electric carmaker by 2035 and a carbon-neutral company by 2040. At the time, the company said it aimed to eliminate all tailpipe emissions from new light-duty vehicles by 2035 as part of a wider strategy to become a carbon-neutral business by 2040. Investments in EVs by 2025 were seen at $27 billion.
Now, according to the Reuters sources, GM will move some of its later investments forward and build two more battery plants in the United States. The news comes weeks after Ford announced a major revision in its EV investments to more than $30 billion by 2030, from $22 billion planned earlier.
The huge investment pledges come as the Biden administration earmarks billions for the development of electric vehicle infrastructure. In fact, the White House announced it would spend as much as $174 billion to expand local production, sales, and infrastructure for electric vehicles as part of its green transition plans.
Challenges for the wider adoption of EVs, however, remain, chief among them range anxiety and prices. To address these concerns, GM earlier this year struck a partnership with MIT spinoff SolidEnergy Systems to speed up the commercialization of lithium metal batteries that could dramatically cut electric vehicle (EV) costs and boost range.
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.