General Motors (GM) is halting production at its CAMI EV assembly plant in Ingersoll, ON, Canada, for the month amid overwhelming demand for its Ultium battery platform.
During an interview last month, GM’s CEO Mary Barra explained battery production as the factor limiting them from scaling production.
GM sold a total of 15,652 EVs in the second quarter of this year. However, nearly 14K were Chevy Bolt EV or EUV models, which GM is discontinuing later this year (at least in its current form).
The move comes as GM shifts to an all-Ultium-based lineup to streamline production. Meanwhile, the transition has been anything but efficient.
After launching its first Ultium-based EV, the GMC Hummer EV pickup, in late 2021, GM sold a total of two in the first three months of the year and 47 in Q2, down 83% YOY.
Its second electric model powered by the Ultium system, the Cadillac Lyiq, hasn’t faired much better. GM sold 1,348 Lyriq models in the second quarter after selling 968 through the first three months of 2023.
To help fill the gap left by the Bolt EV/EUV, GM is launching three high-volume Ultium electric cars this year. These include the Silverado EV, Equinox EV, and Blazer EV.
2024 Chevrolet Equinox EV 1LT (Source: Chevrolet)Chevy Silverado EV (Source: GM)Chevy Blazer EV 2LT (Source: Chevrolet)
GM’s EV battery production challenges
According to the union representing workers at the CAMI EV assembly plant (via The London Free Press), GM is unexpectedly halting production for the month due to a battery shortage.
After announcing a CAD 1 billion (roughly $750 million) investment to convert the assembly plant last year, GM said it would begin production of its BrightDrop electric delivery vans in December 2022. Following retooling the plant this past spring and summer, the first 50 BrightDrop EV vans were deployed from the facility in June.
The first BrightDrop Zevo 600 rolled off the CAMI production line (Source: GM Canada)
Unifor Local 88 chairperson Mike Van Boekel said, high demand and limited production ability is the reason for the shutdown. Although “sales are through the roof” and “things are good,” he explained:
They’re out at all GM plants, they need batteries and it stems from a raw material bottleneck.
GM is in the process of building more battery capacity, but “it doesn’t happen overnight,” Van Boekel added.
According to the report, workers are expected to return to work at the CAMI assembly plant on July 31. Sources close to the facility report GM is building a 400,000 square feet addition to assemble its own batteries to support BrightDrop production.
(Source: BrightDrop)
The CAMI facility is building electric delivery vans for FedEx, Walmart, Hertz, Verizon, DHL Canada, and more.
GM currently has one battery plant building Ultium batteries in Warren, OH, which began production last fall. It has three more planned. Its second is expected to start operations later this year in Spring Hill, TN, while its third in Lansing, MI, is slated to open in 2024.
The automaker revealed plans for its fourth last month, a $3 billion plant in Indiana. Altogether, GM expects around 160 GWh of battery cell capacity when all plants are up and running.
Electrek’s Take
Although the demand is there for GM’s electric models (CAMI has about four years’ worth of backlog), the automaker is taking the easy route and filling in with ICE vehicle sales until battery production comes online.
Of the 691,978 vehicles sold in the second quarter, only 15.6K were fully electric, accounting for 2.26%, down from 3.4% in Q1. With plans for four battery plants total, hopefully, GM can turn things around quickly.
Casey Selecman, powertrain forecasts director with AutoForecast Solutions, said, “My guess is this is a short-term issue. There’s nothing on my radar about shutdowns elsewhere.” However, as he added, “Everyone is up against it globally, there are looming threats of shortages for nickel, lithium, graphite and cobalt.” We’ll keep you updated on more about the situation.
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On today’s downright giddy episode of Quick Charge, at least one Cybertruck owner is sick of people making fun of his ride – but Tesla won’t let him trade it in. Plus, the Associated Press reports that Tesla is suing its own customers, and Nissan is adding AI to its EVs to its record time.
Bloggers and journalists might be in trouble if they keep writing about Tesla’s shortcomings – especially in China, where the company has allegedly been using its pull with the government to put pressure on journalists to keep their spin on the company positive. We’ve also got some new pics of the upcoming 2026 Nissan LEAF and a story about the rising cost of solar under Trump’s second administration.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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The Nature Conservancy (TNC) and the Cumberland Forest Limited Partnership are turning former Appalachian coal mines into clean energy hubs. They just announced new agreements with Sun Tribe Development and ENGIE to build 14 solar farms and three battery storage systems across 360 acres in Virginia, Tennessee, and Kentucky.
This marks the second round of clean energy projects launched under TNC’s Cumberland Forest Project.
These projects aren’t just about clean energy – they’re about proving that clean energy can be developed on former Appalachian coal mines in a way that benefits the environment and local communities. The solar and storage hubs are expected to bring in more local tax revenue, create short-term construction jobs, and establish a community fund to support additional local initiatives.
Brad Kreps, TNC Clinch Valley director, said, “Developing projects on former coal mines – and in a way that engages with people in the local area so that communities can benefit – takes ingenuity, skill, and determination. Ultimately, we selected Sun Tribe and ENGIE, two experienced developers that have a great interest in bringing this vision to life.”
Once online, these projects will generate around 49 megawatts (MW) of solar energy and 320 MW of battery storage – enough to power 6,638 Appalachian homes annually.
Sun Tribe’s projects will be in Virginia and Tennessee. It’s planning one 5 MW solar project and three utility-scale battery storage systems ranging from 80 MW to 150 MW. These storage projects will improve grid reliability and help cut costs for utility customers by reducing the need for future grid upgrades.
“Locating solar and battery storage on former mine lands makes perfect sense to us,” said Danny Van Clief, CEO of Sun Tribe Development. “These sites and the communities they rest within have powered our country for more than a century – all we have to do is reimagine them for today’s energy technology.”
ENGIE, meanwhile, is developing 13 community-scale solar projects across Virginia, Tennessee, and Kentucky that will take advantage of Inflation Reduction Act incentives to help keep costs down. They’ll range in size from 1 MW to 6 MW, bringing clean energy access to more local communities.
“ENGIE is thrilled to collaborate on the development of these projects with The Nature Conservancy,” says Kristen Fornes, ENGIE head of distributed solar and storage. “These initiatives not only contribute to the reduction of greenhouse gas emissions but also generate employment opportunities, rejuvenate local communities, and enhance access to clean energy in areas where it is most needed.”
This latest announcement builds on previous first-round work by TNC, Sun Tribe, and Dominion Energy to bring renewable energy to Appalachia. Since 2021, Sun Tribe and Dominion Energy have been working on plans to generate 140 MW of renewable energy across eight sites in the Cumberland Forest. The first project, Wildcats Solar, is a 10 MW array planned for Wise County, Virginia. Expected to start construction by 2026, it’s projected to generate $800,000 in tax revenue for the community over its lifetime. Additional projects from the first round are set to be online by 2029.
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The most interesting one is “Armored Tesla (Production Units)”, which is worth $400 million. Strangely, the item is listed under the NAICS code “311999 – All Other Miscellaneous Food Manufacturing.”
The program has a target for delivery in Q4 through the next 5 years.
There are several other similar and strange budgeted items that are linked to the wrong categories:
You have “ARMORED SEDAN” under “Soft Drink Manufacturing,” “ARMORED BMW X5/X7” under “Bottled Water Manufacturing,” and finally, ARMORED EV (NOT SEDAN) under “Ice Manufacturing.”
However, all these other armored vehicle-related items are budgeted at a fraction of the $400 million for Tesla vehicles ($50 million, $40 million, and $40 million, respectively).
The State Department procurement forecast website mentions that the list was last updated in December – before Trump entered office.
Electrek has contacted the State Department for a comment, and we will update you if we get an answer.
Tesla has claimed that its Cybertruck is “armored” and “bulletproof”, but its armored capacity is quite limited. It can likely deflect low-velocity bullets if they hit the doors, but that’s about it.
I am not against armored electric vehicles. If you need armored vehicles, you might as well make them electric.
However, this is certainly weird. Why does the State Department need $530 million worth of armored vehicles? And why is it listed under a bunch of unrelated categories that don’t make sense?
Sounds like a job for DOGE? However, Elon will need to recuse himself from that one, I guess.
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