General Motors Co GM will boost spending on electric and autonomous vehicles to $35 billion through 2025, a 30% jump over its previous forecast under a new plan, Reuters reported on Tuesday citing sources.
What Happened: The No.1 U.S. automaker by volume will build two additional U.S. battery plants and move ahead the timeline on some of its EV investments, as per the report.
The U.S. automaker had in November last year revealed aggressive timelines for ramping up electric vehicle shift, including launching 30 all-electric models globally by 2025. It also said 40% of the company’s U.S. entries will be battery electric vehicles by the end of 2025.
The company had back then raised its electric and autonomous vehicle spending plan to $27 billion through 2025, up from the $20 billion planned before the onset of the COVID-19 pandemic.
Why It Matters: GM’s spending boost follows a similar move from legacy rival Ford Motor Co F, which late last month said it plans to boost spending on electric vehicle development to $30 billion by 2025 under a new turnaround plan and expects 40% car sales by 2030 to be EVs.
See Also: Ford Raises 5-Year EV Investment Target To $30B After High-Flying F-150 Lightning
Automakers across the world, including Volkswagen Ag VWAGY, are setting tighter deadlines and setting aside billions of dollars for a fast switchover to a fully electric vehicle lineup, a disruption brought in and accelerated by Elon Musk-led Tesla Inc TSLA.
Price Action: GM shares closed 0.35 higher at $60.81 on Tuesday.
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