General Motors is delaying plans to produce as many as 400,000 electric vehicles in North America due to a slower-than-expected ramp up in the production of batteries.
The car manufacturer had initially intended on producing 400,000 EVs in North America through 2022 and 2023 but while speaking during a call announcing the company’s third-quarter results, chief executive Mary Barra said its plans have been delayed by six months.
“All of our 2023 launches are progressing well. However, due to a slightly slower launch of cell and pack production than we expected, our plan is now to produce 400,000 EVs in North America over the course of 2022, 2023, and the first half of 2024,” Barra said.
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Barra noted that it had taken “longer than expected” to hire and train more than 1,000 workers that will staff its battery production plant in Warran, Ohio, Business Insider reports.
“It’s taken a little bit longer also from the battery pack assembly as well,” GM’s CEO said.
Despite the delay, other aspects of GM’s introduction of electric vehicles are progressing well. The car manufacturer reported record sales of both the electric Chevrolet Bolt EV and Bolt EUV during the third quarter on the back of dramatic price cuts for both models. Barra noted that GM now has an 8 per cent share of the EV market in the United States.
GM also recently announced a strategic supply agreement with Australia’s Queensland Pacific Metals that will secure its supply of nickel and cobalt in the coming years, vital for its production of batteries. It has also planned four battery plants in the United States through its joint venture partnership with LG Energy Solutions.