GM's sales success and new batteries are powering a comeback

General Motors is showing the automotive world that its electric vehicle ambitions are more than just talk. The company has powered its way to become the second-largest seller of electric cars in the United States, unseating rivals like Ford and Hyundai.

The good news comes despite serious financial headwinds, proving that a a clear strategy focused on volume sales now, and advanced battery technology for the future, can work. In the second quarter of 2025, GM's EV sales shot up by 111% compared to last year, with the company delivering 46,280 electric vehicles to customers.

The driving force behind this impressive growth is Chevrolet. The brand's EV sales soared 146% in the second quarter, largely thanks to the runaway success of the Equinox EV. Billed as one of America's most affordable electric cars, the Equinox EV starts under $35,000 and can travel up to 319 miles on a single charge.

This combination of price and performance has made it the third-best-selling EV in the country this year. Apparently, building an electric car that people can actually afford and use for road trips is a good idea. The growing Chevy lineup also includes the Blazer EV and the Silverado EV pickup, both appealing to a wider range of buyers.

GM's success isn't limited to its mainstream brand. Cadillac is doing really great, with more than a quarter of its second-quarter sales being electric. The luxury brand now has a full lineup of electric SUVs, including the entry-level Optiq, the midsize Lyriq, the three-row Vistiq, and the imposing Escalade IQ.

GM boldly claims Cadillac is the luxury EV leader in the US, but it conveniently sets aside Tesla when making that comparison, citing differences in pricing structure. Meanwhile, the GMC division is also contributing to the electric push with its Sierra EV pickup, which joins the Hummer EV pickup and SUV.

However, this sales boom masks a tougher financial reality. While GM's revenue of $47.1 billion in the second quarter beat Wall Street expectations, its profits fell by 35% to $3.04 billion. The company points the finger directly at tariffs imposed by the Trump administration, which cost GM an extra $1.1 billion in the quarter alone.

GM is bracing for an even bigger impact in the coming months but has assured investors it has a plan. The company is working to offset these costs through manufacturing changes and cost-saving initiatives, including a $4 billion investment to adjust its North American production footprint.

A major part of GM's long-term strategy to control costs and secure its future lies in its battery technology. The automaker is making a big push to develop and produce low-cost batteries in the United States, reducing its reliance on Chinese supply chains.

The first step involves adopting Lithium-Iron-Phosphate (LFP) batteries, a cheaper and popular chemistry. The next-generation Chevy Bolt EV will feature LFP batteries, as will a new trim of the Silverado EV set to launch in 2027. This LFP-powered Silverado is expected to offer around 350 miles of range and cost about $6,000 less than current versions. To make this happen, GM is converting part of its factory in Spring Hill, Tennessee, for LFP battery production, with work scheduled to finish in 2027.

Apart from LFP, GM is betting big on what it calls a "game changer": a new battery chemistry known as lithium-manganese-rich, or LMR. These batteries drastically reduce the need for expensive and ethically complicated materials like nickel and cobalt, replacing them with manganese, which is abundant and cheaper to process.

GM CEO Mary Barra stated that the savings from LMR batteries could be even greater than those from LFP. The company plans to start producing LMR cells with its partner LG Energy Solution in 2027, with the batteries designed for use in full-sized trucks and SUVs arriving in 2028. These vehicles are projected to deliver over 400 miles of range, combining long-distance capability with lower production costs and a more secure, American-based supply chain.

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