Mark Royce, President of General Motors Company (GM), said General Motors would make a statement this week to construct new battery factories. Royce gave no specific information regarding the location or the nature of the factories. He spoke in a weekend interview with The Associated Press at an IndyCar race on an island park near downtown Detroit. Jim Cain, GM’s spokesman, declined to comment Monday on the announcements but reminded that the company had previously stated it would build more factories to accommodate the increase in sales of electric vehicles. In 2035, General Motors hopes to end the sale of internal combustion vehicles.
GM plans to build the additional plants and two other battery cell plants it reported in the previous two years. All three plants have been announced to ramp up production as the company announces 30 new all-electric vehicles by 2025, with nearly two-thirds being sold in North America.
It has already been announced that General Motors (NYSE: GM) and LG Energy Solution will construct battery cell factories in Lordstown, Ohio, near Cleveland, and Spring Hill, Tennessee. For each facility, the company is investing $2.3 billion. The Lordstown project is set to open next year and employ 1,100 workers, while the Spring Hill project is set to open in 2023 and employ 1,300 workers. The new battery plants would likely employ similar numbers of people, but Cain wouldn’t comment on numbers.
The plants under construction will export cells to five plants that intend to construct electric vehicles for GM. However, even if sales increase, the two factories cannot feed all the plants. The EV assembly plants are in Detroit-Hamtramck, Michigan; Orion Township, Michigan; Spring Hill, Tennessee; Ingersoll, Ontario; and Ramos Arizpe, Mexico. Some of the new battery plants are likely to be located near the assembly plants. GM announced last month that it would support efforts by the United Auto Workers union to organize employees at its batteries plants in Lordstown and Spring Hill.
The stock of General Motors Company (NYSE: GM) rose 0.03% to finish the last trading session at $60.81. A trading volume of 10.74 million shares was recorded, below the average daily trading volume published for the previous 50 days of 16.04 million shares. General Motors Company shares have declined by -4.87% in the last five days, but they have gained by 8.59% over the past month. Its stock price has increased by 6.46% in the previous three months, while it has gained 46.04 %this year. Furthermore, the stock has a price-to-earnings ratio of 9.83. In addition, its price to cash flow ratio is 7.81, and its price to sales ratio is 0.72.