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General Motors (GM) Forms Energy Unit, Inks Deal to Source Nickel
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To expand its footprint outside the current EV portfolio, General Motors (GM - Free Report) recently unveiled Ultium Home and Ultium Commercial, which, together with the existing Ultium Charge 360, will create energy management products and services. The framework will be housed under a new business unit called GM Energy.
GM Energy's product and service offerings will provide energy management for home, commercial and EV customers through various solutions. Applications will range from bi-directional charging, vehicle-to-home (V2H) and vehicle-to-grid (V2G) capabilities, stationary storage, solar products, software applications, cloud management tools, microgrid solutions, hydrogen fuel cells and more. The services will also allow the sale of energy from EV and stationary storage batteries back to utilities during peak consumption periods.
Much of the above-mentioned technology will become available to consumers through Ultium Home, which is the residential-focused section of GM Energy.
The interface for GM Energy's solutions will be GM's Energy Services Cloud, equipped with data and energy management tools, building a holistic connection between residential, fleet and commercial energy assets for customers.
Many large-scale companies across the United States are working with GM Energy to provide energy services. Some of them are Con Edison, Graniterock and New Hampshire Electric Cooperative. Among them is a partnership with SunPower, one of the leading solar technology providers in the country. The two companies will co-develop and offer customers integrated solar energy-powered systems in homes with EV and battery solutions, solar panels and home energy storage. The home energy framework seeks to enable drivers to power their homes with the battery in their EVs. This unlocks the scope of powering homes during times of necessity.
Moreover, SunPower will become a preferred installer for the home energy system and offer the scope to add solar power to their homes. The home energy system will be available alongside the retail launch of the upcoming 2024 Chevrolet Silverado EV, which is slated to begin production in fall 2023. GM expects all of the new Ultium Home and Commercial products to go into production in fourth-quarter 2023.
To put to use the feature of powering homes through EVs, GM has initiated a V2H pilot project between GM Energy and Pacific Gas and Electric Company (“PG&E”). After initial trial runs, the two companies expect to expand the V2H offer to a subset of residential customers within PG&E's service area, expected to begin in 2023.
Also, as part of GM Energy, Ultium Charge 360 will continue to expand its existing public charging networks, integrated mobile apps, and additional product and service offerings over time.
In another development to its charging capabilities, General Motors recently secured a new source of cost-competitive nickel and cobalt for Ultium battery cells with a strategic investment in Queensland Pacific Metals of Australia. The nickel processing will be carried out in a manner that will reduce waste with no requirement for a tailings dam. Per the agreement, GM is expected to invest up to $69 million in Queensland Pacific Metals to develop its proposed Townsville Energy Chemicals Hub Project in Northern Australia.
The nickel and cobalt extracted will power a broad portfolio of trucks, SUVs, vans and luxury vehicles of GM, including the Chevrolet Silverado EV, GMC HUMMER EV Pickup and SUV, Cadillac LYRIQ, Chevrolet Blazer EV and Chevrolet Equinox EV.
The collaboration with Queensland Pacific Metals will provide GM with a secure, cost-competitive and long-term supply of nickel and cobalt from a free-trade agreement partner and will aid its EV production requirements.
GM is determined to go the extra mile to master every aspect of electrification to emerge as the undaunted EV leader. In its ambitious strategy, it has laid out a two-year milestone to scale up capacity between 2023 and 2025. It intends to reach a production volume of 1 million EVs in North America and China each by 2025. GM also plans to do away with tailpipe emissions from all its new light-duty vehicles by 2035 and, thereby, is developing a supply chain and recycling strategy.
The company has already formed agreements to secure battery raw materials to support its goal. The partnership with Queensland Pacific Metals will further strengthen the procurement of materials as well as ensure waste reduction and a sustainable supply chain.
Recently, to transition to a circular battery ecosystem, GM announced that its investment wing, GM Ventures, has invested in Lithion Recycling Inc.'s Series A financing round, facilitating a new GM-Lithion partnership. Lithion's technology will enable it to recover and reuse raw material in its Ultium battery packs, making the EVs more sustainable and economical.
The auto magnate looks geared up to make bold headways in its electrification progress.
Shares of GM have lost 44.6% over the past year compared with its industry’s 29.5% decline.
Cummins has an expected earnings growth rate of 17.9% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.23% upward in the past 30 days.
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the other two. CMI posted a trailing four-quarter earnings surprise of 1.49%, on average. The CMI stock has declined 5.3% in the past year.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
CarParts’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once. PRTS reported a trailing four-quarter earnings surprise of 70%, on average. The PRTS stock has declined 65.7% in the past year.
Dorman has an expected earnings growth rate of 10.1% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once. DORM reported a trailing four-quarter earnings surprise of 0.85%, on average. The DORM stock has declined 8.7% in the past year.
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General Motors (GM) Forms Energy Unit, Inks Deal to Source Nickel
To expand its footprint outside the current EV portfolio, General Motors (GM - Free Report) recently unveiled Ultium Home and Ultium Commercial, which, together with the existing Ultium Charge 360, will create energy management products and services. The framework will be housed under a new business unit called GM Energy.
GM Energy's product and service offerings will provide energy management for home, commercial and EV customers through various solutions. Applications will range from bi-directional charging, vehicle-to-home (V2H) and vehicle-to-grid (V2G) capabilities, stationary storage, solar products, software applications, cloud management tools, microgrid solutions, hydrogen fuel cells and more. The services will also allow the sale of energy from EV and stationary storage batteries back to utilities during peak consumption periods.
Much of the above-mentioned technology will become available to consumers through Ultium Home, which is the residential-focused section of GM Energy.
The interface for GM Energy's solutions will be GM's Energy Services Cloud, equipped with data and energy management tools, building a holistic connection between residential, fleet and commercial energy assets for customers.
Many large-scale companies across the United States are working with GM Energy to provide energy services. Some of them are Con Edison, Graniterock and New Hampshire Electric Cooperative. Among them is a partnership with SunPower, one of the leading solar technology providers in the country. The two companies will co-develop and offer customers integrated solar energy-powered systems in homes with EV and battery solutions, solar panels and home energy storage. The home energy framework seeks to enable drivers to power their homes with the battery in their EVs. This unlocks the scope of powering homes during times of necessity.
Moreover, SunPower will become a preferred installer for the home energy system and offer the scope to add solar power to their homes. The home energy system will be available alongside the retail launch of the upcoming 2024 Chevrolet Silverado EV, which is slated to begin production in fall 2023. GM expects all of the new Ultium Home and Commercial products to go into production in fourth-quarter 2023.
To put to use the feature of powering homes through EVs, GM has initiated a V2H pilot project between GM Energy and Pacific Gas and Electric Company (“PG&E”). After initial trial runs, the two companies expect to expand the V2H offer to a subset of residential customers within PG&E's service area, expected to begin in 2023.
Also, as part of GM Energy, Ultium Charge 360 will continue to expand its existing public charging networks, integrated mobile apps, and additional product and service offerings over time.
In another development to its charging capabilities, General Motors recently secured a new source of cost-competitive nickel and cobalt for Ultium battery cells with a strategic investment in Queensland Pacific Metals of Australia. The nickel processing will be carried out in a manner that will reduce waste with no requirement for a tailings dam. Per the agreement, GM is expected to invest up to $69 million in Queensland Pacific Metals to develop its proposed Townsville Energy Chemicals Hub Project in Northern Australia.
The nickel and cobalt extracted will power a broad portfolio of trucks, SUVs, vans and luxury vehicles of GM, including the Chevrolet Silverado EV, GMC HUMMER EV Pickup and SUV, Cadillac LYRIQ, Chevrolet Blazer EV and Chevrolet Equinox EV.
The collaboration with Queensland Pacific Metals will provide GM with a secure, cost-competitive and long-term supply of nickel and cobalt from a free-trade agreement partner and will aid its EV production requirements.
GM is determined to go the extra mile to master every aspect of electrification to emerge as the undaunted EV leader. In its ambitious strategy, it has laid out a two-year milestone to scale up capacity between 2023 and 2025. It intends to reach a production volume of 1 million EVs in North America and China each by 2025. GM also plans to do away with tailpipe emissions from all its new light-duty vehicles by 2035 and, thereby, is developing a supply chain and recycling strategy.
The company has already formed agreements to secure battery raw materials to support its goal. The partnership with Queensland Pacific Metals will further strengthen the procurement of materials as well as ensure waste reduction and a sustainable supply chain.
Recently, to transition to a circular battery ecosystem, GM announced that its investment wing, GM Ventures, has invested in Lithion Recycling Inc.'s Series A financing round, facilitating a new GM-Lithion partnership. Lithion's technology will enable it to recover and reuse raw material in its Ultium battery packs, making the EVs more sustainable and economical.
The auto magnate looks geared up to make bold headways in its electrification progress.
Shares of GM have lost 44.6% over the past year compared with its industry’s 29.5% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
GM currently has a Zacks Rank #4 (Sell).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Dorman Products (DORM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 17.9% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.23% upward in the past 30 days.
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the other two. CMI posted a trailing four-quarter earnings surprise of 1.49%, on average. The CMI stock has declined 5.3% in the past year.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
CarParts’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once. PRTS reported a trailing four-quarter earnings surprise of 70%, on average. The PRTS stock has declined 65.7% in the past year.
Dorman has an expected earnings growth rate of 10.1% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once. DORM reported a trailing four-quarter earnings surprise of 0.85%, on average. The DORM stock has declined 8.7% in the past year.