GM exec admits company is struggling to build EV batteries

Paul Jacobson, chief financial officer (CFO) for GM, has admitted the automaker is having problems ramping up production of its Ultium-equipped EVs.

According to Reuters Jacobson told an investor conference this week slow EV sales were because of issues in the manufacture of battery modules at the company’s plants.

InsideEVs reports just one battery cell factory — in Lordstown, Ohio — is currently operational, with two — Spring Hill, Tennessee, and Lansing, Michigan — not due to come online until next year.

The slow ramp up of Ultium battery manufacturing not only hurts deliveries for cars available right now, but may delay the roll out of all the EVs GM has planned. These include the already revealed Chevrolet Blazer EV and Equinox EV, as well as the Cadillac Escalade IQ launched yesterday.

With the company’s Ultium battery production problems, sales of EVs using the in-house battery tech has been lagging well behind expectations.

In the first half of 2023, just 2316 Cadillac Lyriq crossovers have been sold, while the GMC Hummer EV range managed just 65 sales.

As far as the Lyriq goes, deliveries have actually gone into reverse, with the company managing to sell 8195 units in 2022, although this is well short of the 25,000 it was hoping to make.

Things are beginning to look up, though, with GM’s CFO stating the company managed to produce 1000 Lyriqs in July.

GM’s EV woes have been partially masked by strong sales of the budget-friendly Chevrolet Bolt (33,658). Although production of the Jazz-sized EV is due to end this year, with the company retooling the Orion factory to produce Chevrolet Silverado EV and GMC Sierra EV pickup trucks.

The General isn’t the only American EV manufacturer to hit speed humps this year. The Ford F-150 Lightning has run into production issues and cooling demand, mainly thanks to overzealous dealer markups, while Rivian has seen supply chain problems limit overall production to around 50,000 cars this year.