Unafraid of the electric vehicle downturn: General Motors (GM.US) makes a bold bet on lithium-manganese-based batteries, wagering on the next generation of affordable electric vehicles

According to Jinse Finance APP, General Motors (GM.US) has not been swayed by the electric vehicle market downturn in recent years and is advancing a brand-new electric vehicle project, expecting to launch a new battery-powered mainstream SUV in about three years. GM executives told reporters at an event in New York that the company’s latest initiative aims to roll out multiple affordable electric vehicles in high-volume vehicle segments. Central to this strategy is the use of lithium manganese-rich chemistry batteries, which offer longer range and lower cost compared to GM’s current battery technologies.

“Our ultimate goal is to achieve profitable electric vehicles,” said Jaclyn McQuaid, GM’s Senior Vice President of Vehicle Product, in an interview. “The data we see shows that consumers who spend time experiencing electric vehicles enjoy the experience.”

For General Motors, planning new electric vehicle models while facing declining sales is a bold move. Under CEO Mary Barra’s leadership, the company has invested $35 billion in electric drive and other technologies, resulting in a current lineup of 12 models.

However, in the United States—GM’s largest source of sales and profit—the vast majority of buyers still purchase gasoline-powered vehicles, as well as hybrid cars mainly produced by Asian competitors. Last year, former U.S. President Donald Trump and Republican lawmakers rolled back federal policies that previously drove automakers to build more EVs and incentivized consumers to buy them, including a $7,500 tax credit for EV buyers, which further highlighted the situation.

So far this year, as of the third quarter, GM’s electric vehicle sales have fallen by 43% to 82,000 units. The company has already written down over $11 billion in investment in electric vehicles and sold its battery plant stakes to partners LG Energy Solution and Samsung SDI. At the same time, the company is doubling down on internal combustion engines, introducing new V-8 engines for pickups and SUVs.

Despite these short-term challenges, the automaker still sees electric drive as the long-term future and believes consumers will eventually embrace electric vehicles.

McQuaid said that the latest advances in lithium manganese-rich (LMR) chemistry allow GM to develop a wide range of electric vehicle products. Its current EV batteries use nickel manganese cobalt (NMC) chemistry, which offers long range but is costly. Chinese automakers use lithium iron phosphate (LFP) batteries, which are less expensive but have shorter driving range per charge.

GM states that its LMR battery design has 33% higher energy density than LFP batteries, and with weight reduction, each kilowatt-hour of energy should provide 20% more range.

GM Chief Product Officer Sterling Anderson said the company is also achieving additional cost savings with new battery packs that are lighter, have reduced wiring, and contain 40% fewer components than current models. Anderson said GM is leveraging more AI tools to coordinate design, engineering, and manufacturing operations, aiming to halve the nearly five-year vehicle development process.

Anderson stated that electric vehicles also present an opportunity for GM to introduce its latest autonomous driving capabilities. These features will debut on the electric Cadillac Escalade IQ in 2028 and will be extended to lower-priced models. The system will allow drivers to take their hands off the steering wheel and eyes off the road when driving on highways. Anderson said the company is working to eventually enable self-driving capability beyond highways.