gm
General Motors
GLOBAL MANUFACTURING & PRODUCT STRATEGY
EXECUTIVE MEMORANDUM
Corporate Finance & Capital Allocation
TO:
Executive Leadership Team, Plant Managers, Global Engineering & Finance Directors
FROM:
Mary Barra, Chair & Chief Executive O
ffi
cer & Paul Jacobson, Chief Financial O
ffi
cer
DATE:
September 17, 2026
SUBJECT:
General Motors Electric Vehicle Investment Memo
1. STRATEGIC CONTEXT & PURPOSE
General Motors remains committed to our vision of a world with Zero Crashes, Zero Emissions, and Zero Congestion.
The transition of the automotive industry toward full electri
fi
cation represents the most signi
fi
cant industrial retooling
in GM's history, requiring sustained capital discipline and precision manufacturing deployment.
This
General Motors Electric Vehicle Investment Memo
outlines our $35+ billion multi-year capital deployment
strategy. It de
fi
nes key investment tranches into our modular Ultium battery and drive unit architecture, details
domestic assembly retooling, and formalizes operational guidelines designed to achieve pro
fi
table, scalable EV
manufacturing while maintaining robust internal combustion engine (ICE) cash
fl
ow.
2. CORE STRATEGIC PILLARS OF THE EV INVESTMENT STRATEGY
Our capital allocation plan is built on three interdependent operational pillars:
Scalable Ultium Platform Architecture:
The modular pouch and prismatic battery cell design allows uni
fi
ed packs
to power high-volume entries across segments
—
from mass-market crossovers (Equinox EV) to
fl
agship luxury
(Cadillac Lyriq and Celestiq) and high-margin full-size trucks (GMC Sierra EV, Chevrolet Silverado EV).
Vertical Supply Chain & Domestic Battery Cell Production:
Through our Ultium Cells LLC joint ventures, GM is
localizing gigawatt-hour battery cell manufacturing across Ohio, Tennessee, and Michigan, insulating our pipeline
from geopolitical friction and qualifying for clean vehicle tax credits.
Plant Conversion Over Green
fi
elds:
Rather than constructing redundant green
fi
eld sites, GM is repurposing legacy
manufacturing hubs
—
including Factory ZERO (Detroit-Hamtramck), Spring Hill Manufacturing, and Orion Assembly
—
protecting skilled labor while reducing capital expenditure per installed unit.
Executive Capital Principle:
Pro
fi
table EV scaling requires agile capital management. We are matching battery
production buildouts directly to consumer adoption curves, optimizing working capital, and capturing mid-single-digit
EBIT-adjusted margins as cell costs decline below $80/kWh.
3. DOMESTIC BATTERY CELL INFRASTRUCTURE
Securing direct domestic access to raw lithium, nickel, cobalt, and separator capacity is vital. Direct equity
investments in domestic extraction initiatives
—
including Thacker Pass lithium development
—
ensure long-term cost
advantages and domestic sourcing compliance.
General Motors Company
—
Con
fi
dential Internal Corporate Policy
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