Sustainable Finance

GM to spend $7 billion to Achieve ESG Targets

Published on: 27 January 2022 09:13 AM
by KnowESG

A Brief Summary

GM announced its largest-ever investment, communicated intentions to invest over $7 billion in its home state of Michigan as the automaker strives to considerably increase its electric vehicle and battery production capacity. GM expects to have more than 1 million electric car capacity in North America by the end of 2025 as a result of the increased investments.

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GM's plans include investments in four Michigan manufacturing sites, including a $4 billion conversion of its Orion Township assembly plant for the production of the Chevrolet Silverado EV and the electric GMC Sierra, a new 2.8 million-square-foot battery cell manufacturing plant in Lansing, and near-term product enhancements at two Lansing-area vehicle assembly plants. Ultium Cells, a joint venture with LG Energy Solutions, will invest $2.6 billion in a battery factory.

GM's total full-size electric truck production capacity will reach 600,000 trucks with the Orion conversion and the new Ultium battery plant, as well as the complete reconfiguration of its Detroit-Hamtramck Assembly Center to the Factory ZERO all-electric vehicle assembly plant, putting the company on track to meet its goal of being the EV market leader in North America by 2025.

In June 2021, GM announced intentions to invest $35 billion in its EV and AV strategy between 2020 and 2025, to reach 1 million EV capacity by 2025.