General Motors’ Ultium battery brand name will be discontinued as the company shifts toward incorporating different battery types and chemistries in its electric vehicle (EV) lineup. The move comes as GM aims to cut EV production costs and address the challenges of scaling battery production.

Kurt Kelty, GM’s VP of batteries (and a former Tesla executive), revealed the changes during an investor event. The Ultium strategy aimed at a single format, underpinning millions of EVs to slash cost and bring affordable EVs to market as quickly as possible.

However, he highlighted that the single-format plan is too risky nowadays. He outlined the company’s shift to adopt lithium iron phosphate (LFP) battery technology to reduce the cost of its EVs by up to $6,000 (€5,487).

Single supplier is too risky

Since launching the brand in 2020, GM has primarily used nickel cobalt manganese (NCM) batteries in its Ultium platform. It also has a common platform, which it has licensed to Honda for introducing its first all-electric SUV in the US.

Dropping the “one-size-fits-all” approach will allow GM to optimize battery systems for specific models and make it less vulnerable, as the carmaker is no longer tied to LG Electric Solutions as its single-cell supplier.

The Ultium brand will remain in use for joint venture manufacturing sites and facilities, but GM will gradually phase it out for new battery technologies.

The LFP batteries, already used by automakers like Tesla, Ford, and Volvo, will be combined with the Ultium platform and appear in the next generation of the Bolt.

This chemistry offers several advantages over NCM batteries. They are more straightforward to produce, cost-effective, and avoid using cobalt, a material with controversial mining practices.

However, LFP batteries have a lower energy density, making them most suitable for entry-level EVs. Despite this, Kelty said GM’s engineering would enable larger EVs, including pickup trucks, to still achieve over 350 miles (560 kilometers) of range with LFP batteries.

GM plans to open a new battery cell development center in 2027 at its Warren, Michigan, tech center as part of the shift. The new facility will help GM better compete with dominant Chinese battery manufacturers and will work alongside the Wallace Battery Cell Innovation Center in Warren.

These centers aim to fast-track the development and production of new battery technologies, with Kelty stating GM is on track to meet production demand into 2025.

EV sales rising slower than expected

GM’s current battery production efforts have faced challenges, but Kelty reassured investors that the issues have been resolved. The automaker’s joint venture with LG Energy Solution in Ohio is expected to produce 100 million battery cells by the end of 2024.

GM is also collaborating with Samsung SDI to build a $3.5 billion (€3.2 billion) battery plant in Indiana focused on developing nickel-rich prismatic cells. These developments, along with the adoption of LFP batteries, must help GM reduce battery weight, drive down costs, and simplify manufacturing processes.

GM’s EV sales have been increasing, but the pace has been slower than expected. The company sold approximately 32,100 EVs in the third quarter of 2023, representing a 60% year-over-year increase, but EVs still made up only 4.9% of GM’s total sales for that period. GM’s original goal of selling 400,000 EVs by mid-2024 has been slashed in half and revised to around 200,000 units for this year.