American legacy automaker General Motors is currently having a major issue in its electric vehicle production due to increasing demand for its in-house developed battery platform.
GM first introduced its cutting-edge Ultium Platform in 2020. It claimed that the platform enabled EV designers and engineers to enjoy “incredible versatility.” It further asserted that its modular battery cells allow for horizontal and vertical arrangements, which supports the perfect incorporation of the battery pack into the chassis.
“They can power three different-sized motors that can be arranged to give a vehicle whatever it needs — now, and in the future.”
General Motors
This technological advancement is indeed a major milestone for GM’s battery technology. On the other hand, the company is reportedly halting production at its CAMI EV factory in Ontario for the month. It attributed the setback to the substantial demand for its Ultium battery.
Supply-demand issue
For those unaware, GM’s CAMI plant houses the production of its EV BrightDrop cargo van. However, the company was reportedly forced to halt production at the facility due to limited battery supply after having surging demand for its Ultium battery.
“They’re out at all GM plants, they need batteries and it stems from a raw material bottleneck. Sales are through the roof. Things are good, but we just don’t have batteries.”
Mike Van Boekel, Unifor Local 88 Chairperson
Chairperson Boekel further explained that GM’s CAMI plant still has about four years of orders from Hertz, Walmart, FedEx, Verizon, Merchants Fleet, and DHL Canada. That considered, GM is actively working to build more batteries to meet the demand. However, Boekel argued that “it doesn’t happen overnight.”
The CAMI plant employs about 1,500 factory workers. As per the report, these workers had to undergo rotating shifts before the shutdown to keep them all employed. The system involved a two-week-on and four-week-off shift. Fortunately, they can return to work on July 31.
“People are frustrated. They want to work, they want to make money. Costs keep going up.”
Mike Van Boekel, Unifor Local 88 Chairperson
GM is also constructing a 400,000-square-foot (37,200-square-metre) plant to produce the necessary batteries for BrightDrop production, as per sources familiar with the matter.
See Also:
- GM to aid electric vehicle battery health maintenance with ALGOLiON acquisition
- GM secures access to Tesla’s vast Supercharger network
- GM secures CAD 300 million fund for its new EV battery parts factory in Canada
- GM and LG received a $2.5B loan to develop three battery plants in the United States
- GM to change from pouch to round battery cells
Notably, GM currently operates one Ultium battery factory in Ohio. To expand its production, it plans to open a second plant in Tennessee as early as next year. Moreover, it will also build a third factory in Michigan in 2025. Hopefully, GM will finally be able to effectively manage its battery supply and demand by that time.
