General Motors (GM) is at it again. In a major challenge to Tesla, the automaker has announced that it has developed a new electric vehicle battery. Its range is higher than Tesla's, and it costs less to produce than current batteries.

With Tesla's current 390 mile range, GM's battery promises a 400 mile range in just one charge.

GM's new battery cells

The company's new battery cells will be usable in several of its new fully electric models, which include its recently unveiled self-driving EV, the Cruise Origin, as well as its future Cadillac luxury SUV.

The company also stated that its plan is to license its battery technology to other companies.

A GM scientist facilitating a pressure test at GM’s Estes Engineering Center battery lab in Warren, Michigan, Source: General Motors

GM CEO, Mary Barra said during a presentation for media and investors, that "GM is building towards an all-electric future because we believe climate change is real."

Barra also stated that the company would be channeling over $3 billion per year in EV research and development, between 2020 and 2025.

The new GM battery cells that are called Ultium are soft, flat pouches. They can be lined up in horizontal rows, a bit like a bookshelf, and can also be stacked vertically. This gives carmakers more flexibility in design.

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A minimum amount of cobalt is used in the Ultium batteries, and the fact that manufacturing improvements keep advancing will bring the cost of production down, says the company.

General Motors announced it has created a new electric vehicle battery that offers up to 400 miles of range and will be cheaper to produce than today's batteries https://t.co/h6Io0GvLao — CNN Business (@CNNBusiness) March 4, 2020

GM promises that the price of the battery cells will dramatically drop to below $100 per kilowatt-hour.

The GM executives strongly believe that the company's new generation of EVs will rack on profit as soon as they're ready thanks to these reduced costs.

All of this information brings light to the clear competition that Tesla will be facing in the EV world.