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EXCLUSIVE GM Increases Electric Vehicle Spending by 30%, Adding Two New Battery Plants – Sources

WASHINGTON, June 15 (Reuters) – General Motors Co will grow global electric and autonomous vehicle spending to $ 35 billion by 2025, a 30% increase from its latest forecast as the company takes the lead Aiming at electric vehicles, people briefed on the matter told Reuters.

As part of that spending, the No. 1 U.S. automaker will build two additional U.S. battery plants and drive some of its EV investments, said the unsolicited sources, said the sources. In November, GM increased its spending plans to $ 20 billion, a figure announced in March before the COVID-19 pandemic brought the auto industry to a standstill.

The Detroit company declined to comment.

GM’s expected announcement of increased spending comes less than a month after rival Ford Motor Co (FN) increased its electric vehicle spending by more than a third to over $ 30 billion by 2030. read more

The combined pledges of $ 65 billion from the largest U.S. automakers, plus increased spending from leading electric vehicle Tesla Inc (TSLA.O) and startups like Lucid and Rivian, reflect the EV arms race that some automakers like Lordstown have Motors Corp (RIDE. O) scramble to raise more funds. Continue reading

In addition, GM chief Mary Barra is due to meet with House spokeswoman Nancy Pelosi and other key Democrats on Wednesday to discuss EVs and vehicle emissions, the sources said.

Barra will also meet U.S. Representative Richard Neal, head of the Ways and Means Committee on Tax Policy, Frank Pallone, chair of the Energy and Trade Committee, and two key Michigan Democrats: Representatives Dan Kildee and Debbie Dingell, the sources said .

WOOING WASHINGTON

Working with Washington is critical as President Joe Biden proposed $ 174 billion in support for electric vehicles and charging as part of his infrastructure plan, including $ 100 billion in rebates for new electric vehicles. GM’s ability to benefit from its current US $ 7,500 electric vehicle tax credit has expired.

GM has argued with the Democrats over vehicle emissions regulations, but last week it said it backed overall emissions reductions in the 2019 California deal with other major automakers. It has also tried to be more flexible in order to achieve the CO2 reduction target by 2026.

The Associated Press reported Monday that GM was planning to announce two new US battery plants, citing comments from President Mark Reuss. GM confirmed the chairman’s comments, but sources said the company had not made a decision on where in the United States to build the plants, which are set to cost more than $ 2 billion each.

In January, GM announced that it had set a goal of selling all of its new cars, SUVs, and light pickup trucks with zero exhaust emissions by 2035, a dramatic move away from gasoline and diesel engines. Continue reading

GM and its South Korean joint venture partner LG Energy Solution (003550.KS) are already building a battery plant in northeast Ohio and have announced that they will build a second battery plant worth $ 2.3 billion in Spring Hill, Tennessee . Continue reading

GM confirmed in November that it will accelerate the rollout of new electric vehicles, with plans to have 30 models worldwide by 2025, up from its previous target of 20 by 2023. Barra said the automaker aims to top annual sales of 1 million electric vehicles in the United States States and China by 2025.

On May 26, a Senate committee tabled a bill that would increase tax credits for electric cars assembled by union workers in the US up to $ 12,500. The current maximum tax credit is $ 7,500. Continue reading

The bill also provides a 30% tax credit for manufacturers who retrofit or build new facilities to produce advanced energy technologies, including batteries. That would be a big boost to GM’s battery factory plans.

Reporting by David Shepardson in Washington Editing by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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