Last year, the U.S. Department of Energy closed a $2.5 billion loan for the GM-LG Energy Ultium Cells LLC joint venture. This will allow the companies to work on the construction of a $2.6 billion plant in Michigan with operations to begin in 2024. Its main focus will be the production of nickel prismatic and cylindrical battery cells.
Preparations are underway at two other plants
In addition, work is underway at the Ohio plant and preparations are slowly coming to fruition to build the Tennessee plant. GM's overall plan sets a goal of producing 400-thousand EVs in North America from 2022 to mid-2024. It would like to produce up to 1 million EVs per year by 2025. With the current strong trend in transportation electrification, the company plans to expand its portfolio of EV plants by at least two more locations in the future. It has had a strong two-year period, and the company's share growth this year stands at around 11.3 percent.* In the coming months, it may be significantly boosted by new agreements with major companies and plans to build new plants as part of the electric vehicle trend, which may provide it with a favorable outlook. [1]
General Motors' stock performance over the past five years. (Source: Google) *
Samsung expands in the US
Samsung SDI CEO Yoonho Choi elevated the efforts of this collaboration with a focus on products with the highest level of safety and quality. The construction of the plant is intended to assist the United States in reaching an era dominated by electric vehicles. Last April, U.S. President Joe Biden visited various foreign companies, including Samsung in South Korea, and urged them to cooperate with U.S. partners in order to gain benefits when negotiating with U.S. unions. They seem to have taken his call to heart and have joined many other companies that are expanding their manufacturing operations in the US.
The stock performance of Samsung Eletronics over the past five years. (Source: Google) *
General Motors' cooperation with Tesla
Other partnerships formed by GM include Tesla. It was created thanks to the strength of the world's largest electric vehicle manufacturer, which is a dense network of high-capacity Supercharger chargers across the US and Canada, currently numbering around 12 thousand. GM has therefore decided to adopt Tesla's charging plug standard, as has Ford, another US giant in the car sector. Currently, Tesla and GM account for 70 percent of all electric vehicles sold in the U.S. market, so this collaboration could potentially help General Motors increase the company's stock value. [2]
Olivia Lacenova, principal analyst at Wonderinterest Trading Ltd.
* Past performance is no guarantee of future results
[1, 2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.
