General Motors (GM) will boost global spending on electric and autonomous vehicles to $35 billion through 2025. That’s a 30% jump over its last spending plan, Reuters reported today.
The No. 1 U.S. automaker will build two additional U.S. battery plants and accelerate some of its electric vehicles investments In November, GM upped its spending plans from $20 billion.
The news from GM comes less than a month after Ford Motor (F) upped its electric car spending by more than a third to over $30 billion by 2030.
In coming days GM CEO Mary Barra is scheduled to meet with U.S. House Speaker Nancy Pelosi and Representative Richard Neal, head of the Ways and Means Committee, Frank Pallone, who chairs the Energy and Commerce Committee, and two key Michigan Democrats, Representatives Dan Kildee and Debbie Dingell.
President Joe Biden has proposed spending $174 billion to boost electric vehicles as part of his infrastructure plan, including $100 billion in new electric vehicle rebates. GM, like Tesla (TSLA) has sold too many electric cars to benefit from the current $7,500 federal electric vehicle tax credit. On May 26, a Senate committee advanced legislation that would boost tax credits to as much as $12,500 for electric vehicles assembled by union workers in the United States. The bill also includes a 30% tax credit for manufacturers to retool or build new facilities to produce advanced energy technologies including batteries. GM and its South Korean joint-venture partner, LG Energy Solution, are already building a battery plant in northeastern Ohio and have announced a second, $2.3 billion battery plant to be located in Spring Hill, Tennessee.
In January, GM said it was setting a goal to sell all its new cars, SUVs and light pickup trucks with zero tailpipe emissions by 2035.
Shares of General Motors closed up 1.56% today to $61.76.
Ford is a member of my Jubak Picks Portfolio.