GM joint venture unveils new EV battery technology

Ultium Cells, General Motors’ (NYSE:GM) joint venture with South Korea’s LG Energy Solutions, believes it might have finally solved the problem of creating a low-cost lithium battery with a premium range. The JV plans to start commercial production of lithium manganese-rich (LMR) prismatic battery cells in early 2028, ultimately reducing costs and increasing profitability of large GM (NYSE:GM) electric vehicles like the Chevy Silverado and Cadillac Escalade.

“LMR unlocks the premium range and performance at an affordable cost, it’s a game-changing battery for electric trucks,” said Kurt Kelty, GM vice president of battery, propulsion and sustainability, quoted by CNBC during a media event at the automaker’s tech and design campus in suburban Detroit.

LMR batteries use manganese instead of more expensive cobalt and nickel, currently used in EV batteries. In the past, however, the substitution failed to replicate the range of cobalt-nickel batteries and resulted in a shorter lifespan of the battery. By using prismatic LMR batteries and supporting technologies, GM (NYSE:GM) believes it can lower the weight of an EV by hundreds of pounds through 50% fewer parts in the battery pack and a reduction in modules.

The LMR batteries are expected to cost ~$80 to $90 per kWh versus $125 per kWh for GM’s current battery technology with 33% higher energy density that will increase the range capability.

By expanding its battery development and increasing investment in production through partnerships like Ultium Cells, GM (NYSE:GM) hopes to limit its reliance on foreign entities like China’s CATL and mitigate the company’s exposure to U.S. trade policies.