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General Motors, LGES to Upgrade Spring Hill Site to Make LFP Batteries
ZACKS· 2025-07-15 16:25
Core Insights - General Motors (GM) and LG Energy Solution (LGES) are upgrading the Spring Hill, TN plant to produce more affordable lithium iron phosphate (LFP) electric vehicle (EV) battery cells, which are less expensive than traditional lithium-ion batteries due to the absence of costly materials like cobalt and nickel [1][9] - The upgrade will enable U.S.-based production of LFP batteries, complementing GM's existing high-nickel battery offerings and future lithium-manganese-based batteries, thereby expanding GM's EV lineup [2] Company Developments - GM currently offers 12 EV models with prices ranging from approximately $35,000 to over $300,000, with the upcoming Chevy Silverado EV and next-generation Chevy Bolt EV expected to feature LFP batteries [3] - The new Bolt is anticipated to start production later this year and reach consumers by early 2026, while local LFP production is targeted for late 2027 [3] - The LFP version of the Silverado EV is projected to provide around 350 miles of range and reduce vehicle costs by $6,000 [3] Investment and Technology - The Spring Hill plant upgrade builds on a previous $2.3 billion investment announced in 2021, although no additional investment figures were disclosed for the current upgrade [4] - GM is also developing advanced battery technologies, including lithium-manganese-rich chemistries for large EVs, expected to launch around early 2028, and is exploring silicon anodes and solid-state batteries in its Michigan R&D labs [4] Industry Context - LFP batteries, initially developed in the U.S., have seen mass adoption and advancements led by Chinese manufacturers like BYD and CATL, while Korean companies like LG are now accelerating their efforts in this space [5] - LFP technology is gaining traction in the U.S., with Ford and Tesla also investing in LFP battery production [5] - The GM-LGES joint venture is currently the largest battery cell manufacturer in North America [5]
GM to challenge China's LFP monopoly with upgraded battery factory
TechCrunch· 2025-07-14 16:04
Core Insights - GM is collaborating with LG Energy Solution to upgrade its Ultium battery factory to produce lithium-iron-phosphate (LFP) cells for low-cost electric vehicles (EVs) [1][2] - The Spring Hill, Tennessee battery plant, valued at $2.3 billion, will transition from lithium-ion cells to LFP production, with commercial output expected by late 2027 [2][7] - The automotive industry is increasingly favoring LFP batteries due to their lower cost and enhanced safety profile compared to nickel-manganese-cobalt (NMC) batteries [3] Group 1: Battery Production and Technology - The Spring Hill factory will begin converting its battery cell lines to LFP cells later this year, enhancing domestic LFP production capabilities [2][7] - GM's strategy includes a three-pronged approach to battery sourcing, utilizing NMC for high-range models, LFP for entry-level vehicles, and a new lithium-manganese-rich (LMR) chemistry for mid-range applications [3][4][5] - LMR cells, which will reduce nickel and cobalt content in favor of more affordable manganese, are expected to enter the market in 2028, offering a balance of range and cost [5] Group 2: Market Trends and Future Outlook - The consistent decline in battery pack costs suggests that LFP prices may fall below those of LMR in the coming years, making LFP a more attractive option for entry-level vehicles [7] - The shift towards LFP aligns with broader industry trends favoring cost-effective and safer battery technologies, positioning GM competitively in the EV market [3][7]
Ford's US Auto Sales Dip 9% in February: Hold or Fold the Stock Now?
ZACKS· 2025-03-04 14:30
Core Viewpoint - Ford Motor has reported a significant decline in auto sales in the United States, facing challenges from shifting consumer demand, production adjustments, and increasing competition [1][4]. Sales Performance - Ford's overall auto sales in the U.S. dropped by 8.9% in February 2025, with gasoline-powered vehicle sales declining by 12.7% [1][2]. - Sales of electrified models, including hybrids and EVs, experienced double-digit growth, while EV sales grew by 15% to 7,326 units, driven by strong Mustang Mach-E and E-Transit van sales [2][3]. - The F-150 Lightning saw a 14.7% decline in sales due to intensified competition from other electric pickups [3]. - SUV sales fell by 24.4%, and car sales decreased by 32.2%, while truck sales recorded a growth of 7.7% [3]. Financial Outlook - For 2025, Ford expects adjusted EBIT to be between $7 billion and $8.5 billion, down from $10.2 billion in 2024 [11]. - The company anticipates generating adjusted free cash flow of $3.5 billion to $4.5 billion in 2025, compared to $6.7 billion in 2024 [11]. - The Zacks Consensus Estimate for Ford's 2025 revenues is $166.15 billion, indicating a year-over-year decline of 3.78% [13]. Market Challenges - The Trump administration's 25% tariff on auto imports from Mexico, Canada, and the EU poses a significant challenge, as Ford exported nearly 196,000 cars from Mexico to North America in the first half of 2024 [7]. - Increased pricing pressure and competition in the EV market, particularly from lower-cost alternatives from Chinese automakers, are additional concerns for Ford [9]. - Changing customer preferences and high battery costs are impacting the profitability of Ford's EVs [10]. Stock Performance - Over the trailing 12-month period, Ford's shares have decreased by 24.9%, underperforming the Zacks Auto, Tires and Trucks sector's decline of 2.7% [4]. - The consensus estimate for Ford's first-quarter 2025 EPS is 7 cents, reflecting a significant year-over-year decline of 85.71% [12].