I see a nugget of security analysis as a buried lede in the news of GM crushing 2024 EV sales goals.
In 2024, GM’s EV sales surged 50% to 114,432, its highest ever aided by the new Equinox EV…. That made it one of the fastest-growing players in the electric space.
…investing more than $1 billion in companies making graphite and lithium, as well as deals with South Korea’s LG Chem to produce cathodes for it in Tennessee. That results in big savings related to shipping battery components from China, a multiweek process, as well as fewer quality control headaches.
Like “having product on the water for five weeks that you’re financing, only to find out there’s a reject in that part,” [Kelty, GM’s vice president of battery operations] said. “There’s a lot of costs that are not included upfront.”
Moves to set up a lower-cost battery supply base were cited among reasons Deutsche Bank equity analyst Edison Yu raised GM’s shares to a Buy this month, noting that its EV strategy wasn’t “entirely dependent on volume but also on battery and materials cost savings.”
What an important supply-chain integrity point in an otherwise great report about GM’s already fruitful plans for EV growth. It reminds me of this 2024 chart, showing just how hot the California EV market was last year and where top talent has been going (Hint: reverse correlate with recalls).
