GM is betting a $900 million pilot plant in Warren, Michigan, will help it build cheaper EV batteries in half the time. The Battery Cell Development Center, housed in two anonymous buildings totaling 500,000 square feet, is a low-volume factory for testing new cell chemistries and manufacturing processes before they are scaled up.
The automaker needs cheaper cells because battery packs account for 30-40% of an EV's total cost, and most of its lineup still costs more than the average $50,000 new vehicle. GM faces competition from Tesla and, eventually, Chinese EV makers, so it is developing cells that use less cobalt and nickel, such as lithium manganese-rich cells, and working with startup Peak Energy on sodium-ion cells.
The center is designed to bridge the gap between R&D and full-scale production. It will produce only 4-5 GWh of cells at maximum, but the goal is to perfect manufacturing techniques and then transfer them to partners like Ultium Cells LLC, GM's joint venture with LG Energy Solution. The company's future depends on whether the approach works.