GM Drops ‘Ultium’ Name in Major Shift To Its EV Strategy

General Motors (GM) has reportedly made a major change to its electric vehicle (EV) strategy, including dropping the Ultium name from its EV batteries and related components in North America.

Farewell to Ultium

GM introduced the Ultium brand in 2020 as part of its ambitious EV propulsion strategy. The name was heavily marketed, even featuring in high-profile Super Bowl advertisements. However, according to CNBC, the company has now decided to abandon the Ultium branding for its EV architecture, batteries, and components, except for production operations like the Ultium Cells LLC battery joint venture with LG.

Revised Production Targets

The company has adjusted its EV production targets downward. GM CEO Mary Barra confirmed that the company is on track to produce and wholesale about 200,000 EVs for North America this year. This figure represents a reduction from earlier projections of up to 300,000 units.

Shifting Battery Strategy

GM is moving away from its original focus on Ultium pouch cells to a more diversified approach. Kurt Kelty, GM’s vice president of battery, stated to The Information, “We’re moving from a single-source, single-form factor, single-chemistry to a multi-chemistry, multi-form factor, multi-supplier strategy.” This shift includes a $3 billion deal with Samsung SDI to manufacture prismatic cells, marking a departure from the exclusive partnership with LG.

Profitability on the Horizon

Despite the challenges, GM remains optimistic about the future of its EV business. The company expects to achieve profitability on a production, or contribution-margin basis, by the end of this year. Barra told investors, “This inflection point in EV profitability is arriving much faster than many people thought.”

GM’s EV sales are growing, albeit slower than initially anticipated. The company reported a 60% year-over-year increase in EV sales during Q3, reaching around 32,100 units. However, this still only accounted for 4.9% of GM’s total Q3 sales.

Rethinking Production Plans

The slower adoption rate has led GM to reconsider its production plans. The company is reevaluating its strategy for a second all-electric vehicle plant in Orion Township, Michigan. Rory Harvey, GM president of global markets, explained to CNBC, “This gives us the ability to do a stop breath and refocus and say what is appropriate for the customer demands that are out there today?”

Read More: GM’s Q3 2024 EV Sales Surge 60% With Chevrolet Equinox EV Leading The Charge

As GM navigates the evolving EV landscape, the company remains committed to its long-term goal of eliminating tailpipes from its light-duty vehicles by 2035. However, the path to this objective now appears more flexible, with GM adapting its strategy to match current market realities while still pushing forward with EV innovation and production.

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