Autobayng News Team
Welcome back to Critical Materials, your daily round up of news and events shaping the world of electric cars and technology. On the menu today: China wants to curb battery manufacturing overcapacity with more oversight. Plus, automakers will reveal several new and exciting EVs at this weekend’s Brussel Motor Show.
But first, General Motors is trimming its EV ambitions—and that comes with a 10-figure price tag. Let’s dive in.
25%: GM Takes A $7.1 Billion Hit As It Trims EV Plans
2026 Cadillac Optiq
Photo by: Patrick George
Throughout the 2020s automakers moved fast and spent big on EVs. Billions of dollars flowed into retooling factories, developing new models and locking in battery manufacturing contracts.
After the Trump administration and Congress targeted pro-EV policies last year, that momentum began to sputter. Automakers embarked on an expensive retreat as they unwound some of their EV investments and refocused on combustion.
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For General Motors, that pullback has come with a hefty price tag. The company booked $7.1 billion in charges in the fourth quarter of last year, according to a Thursday SEC filing, much of it a result of reversing EV plans.
The automaker attributed $1.1 billion to costs associated with the restructuring of its China joint venture, where it operates under the SAIC-GM banner. The bulk of the hit, about $6 billion, had to do with pumping the brakes on EVs in North America. That’s on top of a $1.6 billion charge it took last year, also due to a slowdown in EV sales.
Here’s how GM explained the move:
With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industry-wide consumer demand for EVs in North America began to slow in 2025.
As a result, GM proactively reduced EV capacity, including by pivoting the Company’s assembly plant in Orion, MI from EV production to the production of full-size SUVs and full-size pickups powered by internal combustion engines, where we believe we have unmet demand, and we proactively reduced battery cell capacity, including by selling our interest in Ultium Cells LLC’s Lansing, MI facility to LG Energy Solution.
The $6 billion includes $1.8 billion in non-cash charges and $4.2 billion that will have a cash impact, including contract cancellation fees. Crosstown rival Ford made a similar announcement last month, though on an even larger scale. It expects an over $19 billion hit to profits due to its own restrategizing, which saw the cancellation of the F-150 Lightning.
General Motors was the second highest-selling EV automaker last year in the U.S. behind Tesla. And its EV portfolio is among the strongest in the industry, with about a dozen models across the Chevrolet, Cadillac and GMC brands.
But the expiration of the $7,500 federal tax credit and a major rewrite of Corporate Average Fuel Economy (CAFE) regulations, which now no longer carry any penalties, changed the math for automakers. EV sales plunged in the fourth quarter, and it’s not clear how quickly they’ll rebound.
GM made clear that its deep lineup isn’t impacted by Thursday’s announcement, however.
“Our strategic realignment of EV capacity does not impact today’s retail portfolio of Chevrolet, GMC and Cadillac EVs in production,” GM said. “We plan to continue to make these models available to consumers.”
50%: China Seeks To Tighten Screws On Battery Production Overcapacity
Group14 Silicon Anode Battery
Photo by: Group14 Technologies
The Chinese government summoned the country’s largest battery makers for EVs and energy storage systems to a closed-door meeting to mitigate price wars and curb battery production overcapacity, the state-run China Daily reported Thursday.
Some 16 companies including CATL, BYD, Gotion, Svolt and Eve Energy attended the session, as Chinese regulators pledged to tighten oversight in the market, enforce more strict rules around pricing, improve quality and crack down on intellectual property violations, the outlet reported.
According to research firm BloombergNEF, China is grappling with a significant oversupply of batteries. In other words, the country has built far more battery capacity than the world can currently absorb, even before factoring in the next wave of projects already in the pipeline.
That oversupply has helped to drive down battery prices to new lows, but unchecked growth clearly presents issues too.
75%: This Year’s First Auto Show Will Have EVs At The Forefront
Renault Twingo E-Tech Electric (2026) in Green
Photo by: Renault
Global automakers will roll into this weekend’s Brussels Motor Show with a broad lineup of futuristic EVs. The spotlight will be firmly on Europe-focused models. The region is far ahead of the U.S. on the EV adoption curve, though it still trails China.
EVs worth watching, as compiled by Automotive News, include the upcoming Kia EV2, Citroën’s Elo Concept electric utility van, the battery-powered version of Hyundai’s Staria van, Mazda’s second Europe-only EV following the 6e sedan and Renault’s reborn electric Twingo.
BYD, meanwhile, will be there with as many as nine models on display. Tesla will also be present, bringing its lower-priced Standard trims of the Model 3 and Model Y, according to the outlet.
100%: Will Lower-priced EVs Revive Demand?
Or do buyers still need incentives to get into EVs?
Contact the author: Suvrat.Kothari@InsideEVs.com We want your opinion! What would you like to see on Insideevs.com? – The InsideEVs team
