GM enters phase two of EV rollout after record 2022 earnings, massive new lithium stake

General Motors beat both top and bottom-line results in the fourth quarter, leading to record earnings in 2022 as the automaker enters phase two of its EV rollout. The company continues to develop its supply chain for an EV-only future with a massive new domestic lithium investment.

GM earnings growth in 2022 on the heels of EV growth

2022 was a breakout year for GM’s electric vehicles, but the company expects 2023 to be even bigger.

GM’s earnings grew in the fourth quarter of 2022 compared to the previous year as it works to overcome ongoing supply chain issues and scale EV output.

• Revenue – $43.10 billion, up 28.4% from Q4 2021
• Earnings per share (EPS) – $2.12, up 57% from Q4 2021

Meanwhile, rising input costs continue to squeeze margins as GM’s net income margin slipped from 5.2% last year to 4.6% in Q4 2022.

Despite this, GM still achieved the higher end of its guidance range, with full-year 2022 revenue reaching $156.7 billion (+23.4% YOY) and record adjusted EBIT of $14.5 billion. Net income attributable to stockholders was $9.9 billion, down slightly from $10 billion in 2021.

GM has four EVs on the market right now – the Chevy Bolt EV and Bolt EUV, which were the best-selling mainstream EV series in the second half of 2022 – the Cadillac Lyriq, the GMC Hummer EV pickup, and the BightDrop Zevo 600.

In addition, the GMC Hummer EV SUV just entered production Monday, with customer deliveries expected by the end of the first quarter.

To add to its EV portfolio and drive growth, GM plans to launch the Chevy Silverado EV pickup in the first half of 2023, with the Chevy Blazer and Equinox expected to roll out in the second half to complete its EV for everyone strategy.

To ensure it hits its goal of selling one million EVs by 2025, GM continues to secure critical minerals through strategic investments and partnerships.

GM building out its EV supply chain

GM announced it would jointly invest with Lithium Americas to develop Thacker Pass in Nevada, the largest known supply of lithium in the US, during its 2022 earnings release.

According to the release, GMs $650 million investment will be the largest by any automaker for EV battery raw materials in the US.

The project is expected to support the production of 1 million EVs annually and is scheduled to start in the second half of 2026.

GM’s joint venture with LG Energy Solutions also has three expected battery plants. The first in Warren, Ohio, began production in September, while the other two are planned for Spring Hill, Tenessee, and Lansing, Michigan.

Electrek’s Take

With the strength of its flexible Ultium platform and continued investments to vertically integrate its supply chain, GM believes it has the right ingredients to continue its success.

Several highly anticipated EV releases this year should help the company maintain demand as it works to scale production.

The big question will be how quickly GM will be able to ramp production and meet its target of 1 million EVs by 2025. The EV market is becoming increasingly competitive, with new and legacy automakers fighting for a position.

GM believes it has the right pricing strategy, as evident by the Bolt EV and EUV sales, and will not participate in the recent EV price wars.