GM Pauses EV Manufacturing Amid Battery Scarcity

Basic Motors (GM), one of many world’s largest automakers, has quickly halted manufacturing of a few of its electrical autos (EVs) resulting from a scarcity of battery cells. The corporate is dealing with challenges in scaling up its EV output because it competes with different producers for the restricted provide of batteries.

BrightDrop affected by Ultium cell scarcity

One of many affected manufacturers is BrightDrop, a GM startup that builds last-mile supply vans for corporations like FedEx and Verizon. BrightDrop has stopped constructing EVs at its plant in Ingersoll, Canada, resulting from an absence of Ultium battery cells. Ultium is GM’s new battery platform that powers its newest EV fashions, such because the GMC Hummer EV and the Cadillac Lyriq.

GM debuted BrightDrop and its supply van, the Zevo 600, throughout chairwoman Mary Barra’s keynote deal with at CES in 2021. The van was developed in document time and leverages GM’s Ultium batteries. Manufacturing started later in 2021, however a few of the prospects must wait longer because of the battery scarcity.

Hummer EV and Lyriq gross sales lagging behind

This isn’t the primary time that issues with Ultium cells have affected GM’s EV manufacturing. In 2022, GM needed to cease promoting the BrightDrop Zevo 600 van and the Hummer EV resulting from badly sealed battery packs that might let water in. Greater than 65,000 individuals put in a reservation for the Hummer EV, however manufacturing numbers have a protracted approach to go earlier than satisfying that demand. Likewise with the Cadillac Lyriq, which solely bought 2,438 models within the first half of 20232.

GM has just one operational Ultium manufacturing unit, a three way partnership with LG Power Options in Lordstown, Ohio. However issues at that plant haven’t been operating totally easily. On the finish of June, it needed to shut down manufacturing to repair an emissions downside, simply as GM wished to start manufacturing of different Ultium-based EVs just like the Chevrolet Silverado truck. Different issues of safety at Lordstown are additionally factoring into GM’s negotiations with the United Auto Employees union, which desires higher security circumstances for staff.

GM is constructing extra Ultium vegetation in Tennessee, Michigan and Indiana, however they don’t seem to be anticipated to open till later this yr or subsequent yr. In the meantime, GM is vowing to construct extra EVs within the second half of this yr as battery capability picks up. GM’s president of North America, Rory Harvey, mentioned on a name with different executives that he anticipates “much more EVs being constructed within the second half of this yr than the primary half of this yr”.

Battery provide crunch impacts different automakers

GM will not be alone in dealing with battery provide challenges. Different automakers are additionally struggling to safe sufficient batteries for his or her EV plans. Tesla, the market chief in EVs, has warned that battery cell provide is a limiting issue for its progress and has invested in its personal battery manufacturing capability. Ford, Volkswagen, Hyundai and others have additionally shaped partnerships with battery suppliers or introduced plans to construct their very own battery factories.

The worldwide demand for batteries is anticipated to develop exponentially as extra international locations and areas undertake insurance policies to part out fossil gas autos and promote electrical  transportation. Based on BloombergNEF, international battery demand may attain 4.5 terawatt-hours by 2030, up from about 0.3 terawatt-hours in 2020. To satisfy this demand, extra funding and innovation are wanted within the battery business.