“So Long, Ultium.” GM Ditches Costly Name And Focuses On EV Profitability

GM’s marketed battery and technology label, Ultium, is no more. After a series of years promoting the name and its benefits, the automaker announced during its investor day presentation on Tuesday that they would be dropping its name, though the batteries and the heavily developed technology born from the effort will remain as it has for vehicles like the Cadillac Lyriq, Honda Prologue, Chevy Blazer EV, and more. In addition, internally, production operations like the brand’s joint venture plants involving LG Energy Solution will in fact still use the name Ultium Cells.

It’s an odd fate for the label, given how much promotion was applied to it, including multiple Super Bowl commercials that, along with other forms of advertising, required millions of dollars with much of that spent on promoting vehicles that weren’t even available at the time. This, on the heels of spending billions of dollars on the development of said technologies that GM proudly stated were revolutionary, and key to helping create a profitable EV front.

Beyond The Name Game

The reason for the dropped name isn’t clear, but what is clear, is that GM has gone to great lengths to rethink its EV vision moving forward. Like most automakers currently, EV losses and the general slowing of electric vehicle adoption by the public has them searching for ways to turn a profit moving forward. The company seems entirely confident about its battery technology and how it can help minimize costs on future EV applications, and, to that end, there’s a new battery-cell development center on the way.

With its sights set on early 2027, GM plans to open a battery development center in Warren, Michigan, at the site of its Global Technical Center. This might give the company an edge in speeding up the process of battery development by as much as a year, as it would minimize time spent between initial R&D, and actual production of new battery tech, according to Kurt Kelty, GM’s Vice President of Battery Cell and Pack.

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The Great EV Pull Back

GM was targeting a production of 200,000-250,000 EVs for the year as of the summer, a number that was knocked down from an initial 300,000 unit outlook. As of Tuesday, the target was confirmed at 200,000, as the slowing of EV sales overall seemingly forced the slowing. The crunch felt industry-wide resulted in 32,100 GM EVs being sold in its third quater, or about 4.9% of the brand’s total sales for that time period. GM currently has a single plant designated for EV production dubbed Factory Zero, located in Detroit. Plans called for a second EV production center in Orion Township, Michigan, by late this year but that was later pushed back by a year, at a minimum.

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The joint venture with LG will simmer as a bit as GM turns some of its attention from its previous Ultium pouch cells, which used nickel manganese cobalt, in favor of alternative battery options. The automaker is investing heavily in producing prismatic cells with Samsung SDI, a direct competitor of LGs. In April, it was announced that a fourth manufacturing plant from the GM and LG Energy Solution joint venture was no longer planned for the U.S.. and that the new plant planned with Samsung SDI will be more expensive.

During the presentation, GM’s CEO, Mary Barra, mentioned to listeners that the company’s EV losses had likely peaked for the year and that its focus was on increasing profitability in the new year, and that it expected to reach a variable profit this quarter. GM’s CFO, Paul Jacobson, noted that he expected a two-to-four billion dollar profit increase next year for GM’s EV line. That line should include expanding the Lyriq model and welcoming the anticipated Cadillac Vistiq, a three-row SUV.