GM EV Strategy Focuses on Cheaper Batteries for 2028

GM Shifts EV Focus Toward Lower-Cost Batteries

GM EV Strategy is shifting toward battery cost reductions rather than a broader electric vehicle portfolio in the near term, according to executive vice president and CFO Paul Jacobson. Speaking at Morgan Stanley’s Laguna Conference from September 15-17, Jacobson outlined customer demand expectations as General Motors prepares for 2027. He said the company intends to concentrate on scaling cheaper and more effective vehicle batteries as part of its longer-term EV approach. The strategy is aimed at improving affordability for U.S. customers while also supporting profitability for GM. The battery effort represents a central part of the company’s current plans for advancing its electric vehicle business.

LMR Battery Production Targeted for 2028

Jacobson said General Motors is targeting lithium manganese-rich, or LMR, battery production at scale in 2028 as the next step in its long-term strategy. The technology is expected to reduce battery costs while maintaining a focus on vehicle effectiveness, with the company seeking to make EVs more affordable for customers in the United States. Jacobson said the cost savings from LMR batteries could amount to “thousands of dollars per vehicle at the pack level.” The expected savings indicate why battery manufacturing and technology development remain important to GM as it evaluates how to improve EV economics without immediately expanding its portfolio.

GM Maintains Its Current Sales Incentive Strategy

Jacobson also discussed General Motors’ sales strategy amid reduced market share in the U.S. He outlined the company’s position on inventory management and sales concerns for the latter half of the year, saying GM does not plan to depart from its current modest incentive strategy to increase vehicle sales. The approach comes as the company manages demand across different vehicle segments and considers inventory levels. Rather than using a substantially more aggressive incentive strategy, GM intends to maintain its existing approach while navigating market conditions and balancing sales activity with the profitability of its vehicle lineup.

Strong SUV and Pickup Demand Affects Supply

One factor behind GM’s sales strategy is the limited availability of some of its highly profitable SUVs and full-size pickups following heightened consumer demand. The supply situation affects how the company manages inventory and sales activity because vehicles with strong demand can require a different approach from models with excess inventory. Jacobson also addressed pickup production and the transition to a new generation of light pickups. He said, “as we disclosed on our last call, we’ll lose about 35,000 trucks with the changeover”, while describing the production reduction as a long-term good thing for the business.

Industry Impact & Outlook

GM’s focus on lower-cost batteries places battery economics at the center of its near-term EV strategy, with the planned 2028 LMR production scale-up potentially affecting vehicle affordability and profitability. For the U.S. market, the approach could shape how General Motors balances EV investment with demand for profitable SUVs and pickups while managing production transitions. The company’s decision not to broaden its EV portfolio in the near term also indicates that battery cost improvements are being prioritized as a key lever for improving EV economics. The next major development will be the progression toward scaled LMR production and its resulting effect on vehicle costs.

Frequently Asked Questions

What is GM EV Strategy focused on through 2028?
GM’s strategy is focused on scaling lower-cost and more effective vehicle batteries, particularly lithium manganese-rich batteries targeted for production at scale in 2028. The company does not plan to broaden its EV portfolio in the near term. Instead, it is prioritizing battery cost reductions that could make electric vehicles more affordable for U.S. customers while supporting profitability. Paul Jacobson said LMR battery savings could reach “thousands of dollars per vehicle at the pack level,” making battery economics a key part of GM’s longer-term EV plans.