General Motors (GM) is making a bold move to dominate the electric vehicle (EV) market by hiring Kurt Kelty, a former Tesla battery expert, to lead its charge toward affordable family cars. With Kelty’s 11 years of experience at Tesla, GM aims to lower EV costs and challenge Tesla’s lead, a shift that could reshape the U.S. auto industry, according to a detailed report from The WSJ.

Revolutionizing Battery Tech for Cost Savings

Kelty, who joined GM in 2024, is spearheading the company’s battery and sustainability efforts, focusing on new technologies to make EVs more affordable. One breakthrough is the lithium manganese-rich (LMR) battery, which GM has been developing for a decade. LMR batteries reduce the use of expensive materials like nickel and cobalt, relying instead on more abundant manganese. This slashes production costs while maintaining competitive range—potentially offering 70% of the energy density of premium battery packs at a fraction of the price.

GM also plans to introduce lithium iron phosphate (LFP) batteries in its relaunched Chevrolet Bolt later this year. LFP batteries, though heavier and offering less range, are significantly cheaper, making them ideal for budget-friendly models like the 2025 Chevy Equinox, priced at $33,600—an accessible entry point for families.

Ex-Tesla Engineer Kurt Kelty Drives Gm’s Push For Affordable Family Evs

Kelty’s strategy hinges on cost parity with gas-powered vehicles. “When we reach cost parity with [internal combustion engine] vehicles, I think that’s one big milestone,” Kelty told The Wall Street Journal. “When you get there, then you’re really going to see the transition happen very quickly—and we’re not that far away from it.”

Industry Trends: EV Sales Surge Amid Challenges

Global EV sales soared 30% in March 2025 compared to the previous year, but the U.S. lags behind, with GM trailing Tesla’s dominance. In 2024, Tesla sold over five times as many EVs in the U.S. as GM, though GM is now outpacing Tesla in domestic battery production. This shift is critical as GM’s larger vehicles, like the Chevrolet Equinox, demand more batteries, putting pressure on supply chains. However, GM faces headwinds: its two existing battery plants operate below capacity, and a planned fourth facility with Samsung in Indiana has been delayed, according to automotive analyst Sam Abuelsamid from Telemetry.

The Trump administration adds another layer of uncertainty. Policies affecting tariffs on raw materials could disrupt GM’s cost-cutting efforts. “What hangs in the balance are incentives for manufacturing and purchasing EVs, and how tariffs will affect the import of raw materials critical for their manufacture,” David Whiston, a U.S. auto equity analyst at Morningstar, told The Wall Street Journal.

Implications for EV Owners and the Market

For EV owners, GM’s focus on affordability could be a game-changer. The Chevy Equinox, with an MSRP of $33,600, is $5,000 cheaper than its gas-powered counterpart after federal tax credits, saving drivers on fuel and maintenance over time. Kelty’s vision also promises practical benefits: “Switching to an electric powertrain means better performance, less maintenance, more space inside the vehicle, a lower center of gravity and a higher crash rating,” he explained to The Wall Street Journal. These advantages could appeal to families seeking reliable, cost-effective vehicles.

GM’s push aligns with broader industry trends toward sustainable, accessible EVs, but its success depends on overcoming regulatory and supply chain hurdles. If Kelty’s innovations deliver, GM could close the gap with Tesla, making EVs a mainstream choice for American families. As Kelty noted, the transition to EVs is “unstoppable,” and GM’s latest moves might just accelerate that shift.