GENERAL MOTORS (+) : BNP Paribas Global EV & Mobility Conference - GM’s Battery Strategy

Research evidence excerpt

GENERAL MOTORS (+) : BNP Paribas Global EV & Mobility Conference - GM’s Battery Strategy

Refinitiv

LG vs. CATL: GM touted the benefits of having LGES as a partner, noting the great technology and battery

manufacturing know-how it brings to the Ultium Cells JV. We also believe GM sees several major downsides to

partnering with CATL, including the Chinese government’s ban on the export of its most advanced battery technology.

At the same time, the processes CATL relies on to build low-cost LFP cells are heavily dependent on Chinese supply

chains, which would run afoul of U.S. FEOC rules for 45x battery manufacturing credits ($45/kWh). We believe GM

sees the risk that the U.S. government may not allow a company using CATL technology to collect 45x credits.

LMR Batteries: GM highlighted its upcoming LMR batteries (SOP 2028), which are significantly lower cost vs. nickel-

based chemistries with ~33% higher energy density vs. LFP. When it transitions its vehicles to LMR, it will shift to

prismatic cells, which are more efficient to manufacture and package, and undertake a broader vehicle redesign. These

collectively amount to significant cost savings, and leaving it better positioned for when U.S. EV demand eventually

returns. The Co. also highlighted its Battery Cell Development Center (BCDC), a 0.5 GWh pilot line to help it fine-tune

the manufacturing process of new cells. To further close the learning gap vs. higher-volume cell producers (especially

those in China), the Center heavily relies on simulation.

BNPP View:

We continue to view GM as a company with ample upside potential tied to its stellar execution and exceptional FCF &

buyback capacity, with the Co. poised to return a best-in-class ~38% of its market cap to shareholders over ‘26E-‘28E,