GM optimistic about EVs, despite $150 million hiccup and return of hybrids

The company’s decision to bring back gas-electric hybrid vehicles, he said, will address consumer hesitation over fully electric vehicles and help comply with new, fast-approaching regulatory requirements.

Jacobson said plug-in hybrid vehicles, which can travel short distances on battery power, are a good “bridge product” for consumers who still want the security of a gas tank.

Asked about requirements of the Inflation Reduction Act that disqualify vehicles made using too many raw materials from China and other foreign entities of concern, Jacobson highlighted partnerships with South Korean battery companies POSCO Future M Co., LG Chem Ltd. and Samsung SDI Co.

GM started thinking more critically about raw materials sourcing well before passage of the IRA in 2022.

Jacobson said: “When you looked at the effects that the pandemic had across global logistics, we were out there trying to de-risk some of that supply chain because we found that even things in regions that weren't affected by COVID — the shipments on the water were, or the shipments through the air, etc.

“We have gotten far more vertically oriented than any time in the past. And if you look at the history, it went from owning everything to owning nothing, to now having to cooperate at all levels.”

Asked about challenges ahead, Jacobson identified critical minerals processing, particularly for lithium and nickel, as the “number one” investment gap for the U.S. auto industry: “We've done a good job of securing supply, but the processing capabilities across the world are pretty limited and fairly concentrated."

Globally, Jacobson said that the transition to electric vehicles would require hundreds of billions of dollars across several industries. He projected confidence related to the company’s position within the transition.

“GM has done an incredible job generating record levels of cash flow, which is helping to fund this journey, while also making sure that shareholders are getting a return on the investment.”