The company aims to be making 1 million EVs per year by then.
This goal is based on predictions about EV market share and government incentives.
GM wants to make all of its vehicles electric by 2035.
General Motors says its North American electric vehicles could become just as profitable as its gasoline-powered models by the middle of the current decade.
Indeed, the automaker believes it will be able to price its EVs in a way that will let it take a margin of 8 to 10% profit per vehicle, as it currently does with its other products.
This will be made possible by the reductions in production costs, sustained government incentives, and a growing EV market share.
According to GM, its Ultium batteries will only cost around $87 per kWh in 2025 and less than $70 per kWh by 2030 due to the construction of four US factories that will be dedicated to their production.
For comparison, the least expensive lithium-ion batteries used in EVs currently cost around $130 per kWh.
In addition to this reduction in production costs, General Motors also believes that the market share for electric vehicles in the United States will grow further than the 17% by 2025 that is predicted by many experts.
In order to meet this demand, the company plans to have five factories building EVs in North America by the middle of the decade, with a total capacity of about 1 million vehicles per year.
This level of output should allow GM to generate over $50 billion in EV-related revenue for 2025 alone.
Government incentives such as tax credits or rebates on electric vehicles are also a part of GM’s plan to make EVs profitable since they allow the automaker to price its vehicles higher while still remaining affordable to the targeted demographic.
