GM's New LMR Battery Could Change the Game: Is it Ready to Lead?

General Motors GM is setting the stage for a big leap in EV battery innovation. The company just revealed plans for a new lithium manganese-rich (LMR) battery technology that could dramatically lower costs and boost the performance of its largest electric vehicles (EVs). If all goes according to plan, GM could become the first automaker to bring LMR prismatic battery cells to market — a move targeted for 2028.

These new batteries are designed for GM’s full-size electric trucks and SUVs like the Chevrolet Silverado EV and the Cadillac Escalade IQ. The LMR chemistry swaps out pricey materials like nickel and cobalt for more common and affordable manganese. This shift not only cuts raw material costs but could also help GM improve the range and weight efficiency of its EVs.

GM claims that LMR batteries offer 33% higher energy density than today’s top lithium iron phosphate (LFP) cells, all while maintaining comparable costs. This means more miles per charge without driving up sticker prices.

Production is already on the horizon. Ultium Cells, GM’s joint venture with LG Energy Solution, aims to begin preproduction in late 2027 and full commercial production in 2028. It’s all part of GM’s broader push to scale its Ultium platform and improve EV profitability.

But GM isn’t the only auto giant chasing this battery breakthrough. Ford F is also in the race, and it's moving fast. Last month, the company announced that it is developing its own LMR battery chemistry at its Ion Park R&D center in Michigan. Ford has already begun pilot production of second-generation cells and aims to roll out LMR-powered EVs before the decade ends.

Ford sees LMR as the “what’s next” solution following its current use of nickel-manganese-cobalt (NMC) and LFP batteries. The company believes the chemistry could unlock longer-range, lower-cost EVs, especially crucial for scaling up mass-market adoption.

Tesla TSLA, meanwhile, planted early seeds in this space. CEO Elon Musk floated the idea of high-manganese batteries as far back as 2020 during Tesla’s “Battery Day.” At the time, he said Tesla aimed to create cathodes with one-third manganese content to stretch its nickel supply further. Tesla holds patents related to LMR chemistry, but it is yet to share firm production plans.

GM looks set to be the first to market with LMR batteries, Ford is close behind, while Tesla's earlier concepts still await a clear update.

The Zacks Rundown for General Motors

Shares of General Motors have lost around 6% year to date compared with the industry’s decline of 13%.

From a valuation standpoint, GM trades at a forward price-to-earnings ratio of just 5.28, significantly below the industry. It carries a Value Score of A.

The Zacks Consensus Estimate for GM’s 2025 sales and EPS implies a 6% and 12% decline, respectively, year on year. Estimates have been southbound over the past 30 days for the current and next quarter, as well as for 2025 and 2026.

GM stock currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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This article originally published on Zacks Investment Research (zacks.com).

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