American legacy automaker General Motors confirmed plans to use lithium iron phosphate (LFP) batteries for its next-gen Chevy Bolt EV and EUV instead of its own Ultium battery cells, which has a nickel-cobalt-manganese-aluminum (NCMA) chemistry.
GM plans to partner with another company to secure a sufficient supply of LFP batteries. The move will aid the automaker in cutting billions of dollars in engineering expenditures and capital, as asserted by GM Authority.
Announcement highlights
Chief Mary Barra made the announcement during GM’s Q3 2023 Earnings Conference Call, disclosing several details and plans for the new models.
“Another key launch for us is the next-generation Chevrolet Bolt EV. I know there’s been some speculation in the market as to why we are developing a new Bolt EV. Our strategy is to build on the tremendous equity we have in the brand and to do it as efficiently as possible.
GM CEO Mary Barra
The GM Chief further indicated the company’s initial plans to allocate a total of $5 billion in capital for the following few years.
“Our prior portfolio plans included several newly designed vehicles in the entry-level segment and a capital commitment of $5 billion over the next several years.”
GM CEO Mary Barra
In addition, CEO Barra also indicated that the new Chevy Bolt EV and EUVs would feature the latest Ultium tech, software, and Tesla’s NACS port.
“By leveraging the best attributes of today’s Bolt EV as well as Ultium, our latest software, and NACS, we will deliver an even better driving charging and ownership experience with a vehicle we know customers love.”
GM CEO Mary Barra
Change of plans
GM previously announced it would halt the production of the Chevrolet Bolt EV to give way for other new models. However, the automaker changed plans in July from phasing out the model to revamping it by the end of the year.
The Chevrolet Bolt has already established itself in the EV market, with 2023 being its best year for sales. That said, it is unsurprising that the parent company decided to revive the model after almost killing it.
“…In the process, we are saving billions in capital and engineering expense, delivering a significantly cost-improved battery pack using purchased LFP cells, we’re getting to market at least two years faster, and our unit costs will be substantially lower. This will be our first employment in North America of LFP technology in the Ultium platform.”
GM CEO Mary Barra
Chevrolet Bolt sales in the US
GM officially launched the Chevrolet Bolt in the US market in late 2016, according to CNBC. However, its sales have been stagnant in the first year. Nonetheless, the model’s sales figure continued to improve as years went by.
GM launched price cuts and the EUV variant in 2021, stabilizing customer demand for the Chevrolet Bolt.
Below are the Chevrolet Bolt’s US sales from 2016 to 2023:
- As of Q3 2023: 49,484
- 2022: 38,120
- 2021: 24,828
- 2020: 20,754
- 2019: 16,418
- 2018: 18:019
- 2017: 23,297
- 2016: 579
GM has yet to announce its chosen company for the LFP battery supplies. It also remains unclear when the company plans to launch the revamped model in the market. Nonetheless, it will surely attract more customers due to its more affordable LFP battery cells, Ultium architecture, and NACS port integration.
