Why is General Motors making a "risky" Bet on Untested Battery Technology
Kurt Kelty, head of General Motors' electric vehicle division, is putting his career on the line, betting on lithium-manganese (LMR) battery technology to revive the company's electric vehicle ambitions after a $7.6 billion write-down related to electric vehicles, the Financial Times reports. He calls the move "ambitious and risky," but necessary to revive demand in the United States.
Kelty, who was hired in 2024 from Tesla and Panasonic, said GM plans to release its first LMR-based cars in 2028, arguing that such chemical technology could significantly reduce costs by reducing reliance on expensive and scarce minerals such as nickel and cobalt, while surpassing lithium.- iron phosphate batteries. However, he acknowledged that the adoption of electric vehicles in the United States is unlikely to accelerate significantly by the 2030s, citing weaker-than-expected consumer demand and tougher political conditions under the presidency of Donald Trump, including loosening fuel efficiency standards and the elimination of $7,500 in electric vehicle tax breaks.
Although China has achieved mass adoption of electric vehicles through aggressive cost reductions, electric vehicles in the United States are projected to account for only about 8% of total sales this year. Keltie insists that GM has overcome the key technical hurdles that have kept competitors from using the LMR, in particular voltage reduction, and states that these batteries can provide costs similar to LFP outside of China, while demonstrating about a third better performance. As part of this initiative, GM is reducing its reliance on LG Energy Solution, diversifying battery suppliers and formats, and negotiating to supply cells to competitors, although it still faces competition from Ford, which plans to launch its own electric vehicle, the LMR, by 2029.