General Motors isn’t planning to broaden its electric vehicle portfolio to sell more battery-powered cars. Its near-term focus is scaling cheaper and more effective vehicle batteries.
But according to the company’s chief financial officer, U.S. customers won’t see that this year or next.
GM’s New Battery Technology Is Targeted for 2028
Paul Jacobson, GM’s executive vice president and CFO, said Sept. 15 at Morgan Stanley’s Laguna Conference that producing lithium manganese-rich (LMR) batteries at scale in 2028 is the next major step in the automaker’s long-term strategy to make EVs more popular and viable for American drivers.
By comparison, 2027 sales might be considered a “flat spot” on the company’s EV journey, he said.
“It’s really about going after the architecture, going after the makeup, going after the battery cell technology to bring down the cost of EVs,” Jacobson said. “The first big step of that will be in ’28 when we start to produce the LMR technology, which is premium and power load at the same cost as LFP.”
In the wide-ranging conversation, which also touched on the company’s sales strategies and inventory concerns, Jacobson said LMR batteries would mark a “stark improvement” in the range and value of a GM-made EV.
Though GM has scaled back electric vehicle production to bring it more in line with consumer demand, its leadership remains committed to EVs as the end goal.
Developing batteries that cost substantially less to produce while retaining the range drivers rely on is key to making the company’s electric vehicle investments pay off.
When GM announced in May 2025 that it planned to roll out LMR batteries with venture partner LG Energy Solution, the automaker said the chemistry had 33% higher energy density than the best-performing lithium iron phosphate-based cell, then the industry standard.
Using less nickel, a high-cost component in standard batteries, and a “prismatic” cell shape that stores energy more efficiently could lower battery costs. Batteries account for at least a third of an EV’s total cost.
That could mean savings of “thousands of dollars per vehicle at the pack level,” Jacobson said Sept. 15.
“We still believe EVs are a long-term play for us. And we’ve got to get it right. We got to get them profitable,” Jacobson said. “And I think with the investments that we’re making, we’re continuing on that journey more than many of our competitors are.”
GM Isn’t Planning Steep Discounts
Jacobson discussed the company’s inventory management and sales outlook for the second half of the year. GM has no plans to break with its incentive strategy to move more vehicles, and consumers shouldn’t expect steep discounts aimed at defending market share.
“When we see monthly share numbers kind of trickle up and down because of what a competitor is doing, I wouldn’t say we’re not aware of it. We’re very aware,” Jacobson said.
“We’re not hyper focused on it to the point that says, ‘OK, well, we’ve got to go discount everything to sell 2,000 more units.’ It’s not good for the enterprise. It’s not good for the equity and the residual value of the vehicles that you sold. So really, focusing on that long-term customer value proposition is what’s navigated us,” he added.
Popular GM Vehicles Are in Short Supply
Low inventory could also keep GM from increasing incentives. Company leaders warned earlier in the year that pickups and large SUVs, its most popular and profitable products, were in short supply after strong consumer demand.
GM has managed inventory while maximizing production of its most popular vehicles, Jacobson said. He anticipates the company won’t take a hit until it reports fourth-quarter sales, which are typically “seasonally weaker” than earlier quarters.
“This year, it’s compounded by the fact that, as we disclosed on our last call, we’ll lose about 35,000 trucks with the changeover,” he said. “Ultimately, a long-term good thing, but we’ll have that little headwind.”
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