General Motors and Hyundai have both proven themselves to be fairly formidable on the electric-vehicle front. Between Hyundai, Kia, Chevy and Cadillac, the brands have catered well to retail consumers thus far—and now they have commercial buyers in their sights too.
Welcome back to Critical Materials, your daily roundup for all things electric and tech in the automotive space. Also on deck: the last tax-credit-fueled EV boom has officially begun and China gives Nvidia the ol' "it's not us, it's U.S." Let's jump in.
30%: The GM-Hyundai EV Team-Up, Explained
Hyundai and GM are officially teaming up to make EVs. The two companies announced late Wednesday that they've started work on the first five battery-electric vehicles that will be co-developed on shared platforms. And this includes a commercial electric van for North America.
The other four? A compact SUV, a midsized pick-up, a car and another pickup—size not specified.
Unfortunately, none of those four will make it to the U.S. Instead, those will be dedicated to the Central and South American markets, which are ripe for affordable EVs right now. America gets what's still likely profitable for automakers actively investing in new EVs: a commercial van.
Hyundai says that it will be the company to develop the van platform for North America; something that should excite folks who were love-struck by the adorable PV5. The vehicle is expected to launch in 2028 and will be made Stateside—the exact location of the plant is yet to be announced, but between GM and Hyundai, there are plenty of EV-friendly production lines to meet that need.
The automakers also note that the co-developed vehicles might ride on the same platforms and have the same underpinnings, but the vehicles will have brand-specific exteriors and interiors tailored to the specific automaker. That could mean the commercial vehicle will wear GM, Hyundai, and Kia badging riding on the US4 platform like the Staria, the N3 platform like the PV5 or the ST1 platform like Hyundai's existing commercial EVs. Or, maybe Hyundai is using something completely new and different—either way, consider us interested.
Shilpan Amin, GM's Chief Supply Chain Officer, explains why it all makes sense. The two automakers want to broaden their lineup and, as it turns out that combined, they produce more vehicles than any single automaker in the world.
With their manufacturing capacity combined, this makes it possible to produce lower-cost passenger vehicles by cutting down on R&D as well as having a huge entry into the commercial market in North America.
All of that being said, it has me wondering what GM's plans for BrightDrop might be.
GM quietly folded BrightDrop into the Chevy brand last year (which isn't a bad thing; Chevy already has a huge commercial presence). However, the new buddying up between the two brands certainly feels like GM has a plan to build what suspiciously feels like a BrightDrop replacement, even if the automaker doesn't outright call it that.
Here's the tacit truth: building profitable, well-selling EVs is becoming harder than ever in America. With the EV tax credit on the way out, brands like Hyundai seem to be quietly quitting the U.S. market in favor of other countries like Europe. That's why targeting the commercial market is such a great idea.
But the collab between the brands has an uphill battle to overcome. See, Rivian and Ford are already knocking it out of the park with the EDV and affordable E-Transit. Rivian hasn't been specific about the number of EDVs it has delivered to commercial customers; however, Amazon has said that it accepted delivery of more than 10,000 units during the first half of 2025. Ford also sold a lesser, but still impressive, 4,174 E-Transits. And then comes GM, which has moved just 1,592 BrightDrop vans during that same time.
This isn't some cry for help from GM or Hyundai, though. Both have been planning some sort of cooperation since last year, so the move isn't a response to the impending decline of retail customers in the U.S. However, reducing costs through co-development will certainly help.
And with any luck, maybe we'll get some sweet passenger cars out of the deal by the top of the decade (but that's just wishful thinking as of now).
60%: The Last EV Rush (For Now) Is Underway
There's nothing like a bit of FOMO to inspire on-the-fence buyers to finally open up their wallets. Dealerships and automakers around the U.S. are quickly figuring that out as EVs and hybrids are flying off the lot faster than they have in quite some time.
A new report from Lotlinx shows that while the U.S. vehicle inventory rose last month, EVs weren't to blame. In fact, out of all powertrains, the estimated supply of EV inventory fell from 99 days to just 73 days—a whopping 26% decrease.
Automotive News explains just how vehicle supply moved over the last month:
Inventory rose slightly from 2.65 million a month earlier to 2.69 million vehicles to start August, according to Lotlinx, which estimated supply ticked down to 63 days from 65 days the previous month.
A year earlier, new-vehicle inventory stood at 2.77 million, representing a 64-day supply, Lotlinx said.
Broken down by powertrain, the inventory management firm said hybrid vehicles were in the shortest supply nationwide at 55 days, while the combustion-powered vehicle supply was 64 days — largely flat from the previous month.
EV supply dropped sharply, however, from 99 days the previous month to 73 days, Lotlinx said, as automakers and dealers work to clear inventory before federal subsidies expire.
Hybrid supply is also running low at just 55 days of available inventory. But the real news? Inventory of non-electrified vehicles stayed relatively flat from month to month, meaning that buyers really are flocking to EVs and hybrids.
That's a pretty good indication that Americans have finally got the message: your $7,500 tax credit really is going away and time to act is running out. It's a strong message, too, and that's why automakers like Tesla are taking full advantage of advertising the deadline to potential customers—cash on the hood, act now before it's too late!
If you're one of the many folks either considering an upgrade or finally ready to buy your first EV, now is the time. You've got 54 days to take delivery before that EV siphons another $7,500 out of your wallet. So, what are you buying?
90%: China Ramps Up Effort To Boot Nvidia Out Of Its Cars
Nio, Xpeng and the rest of the Chinese automaker squad are all making moves to cut U.S. chipmaker Nvidia out of their dashboards. The move comes as the latest efforts to ditch American silicon from its vehicles amid an anticipated increase in export restrictions—a fancy way of saying "you can't ban us if we don't need you."
Chinese automakers are rapidly swapping out Nvidia's Drive chips, once the golden standard for AI-assisted driving, for home-grown alternatives born and bred in the People's Republic. This isn't just some idle threat or exploration in prototype vehicles, either. It's happening, and it's happening now.
These chips have long been the keystone that held together the bricks of vehicle autonomy for many automakers around the globe. We're not just talking about brands in China, either. High-end systems in vehicles like Mercedes and Lucid use Nvidia's chips and underlying systems, too.
And while automakers in the West are complacent with Nvidia powering their vehicle autonomy platforms, China's brands are in an arms race to make chips that can perform at similar levels and efficiency.
Here's a snippet from Nikkei:
Xpeng and Nio, two emerging car companies supplied by Nvidia, are cutting their reliance on the U.S. AI titan by developing their own chips for smart driving. Both companies used in-house chips—the Turing for Xpeng and the Shenji NX9031 for Nio—in their latest models.
Chinese chip developers like Horizon Robotics, Huawei's HiSilicon, Black Sesame, SemiDrive, and Siengine Technology are also gaining traction, winning over more domestic automakers as customers, according to industry executives. At least 10 emerging and established chipmakers in China have identified the automotive market as their primary focus, according to Nikkei Asia's analysis of government documents and interviews.
[...] At the same time, more and more Chinese carmakers, including BYD, GAC Group, FAW Group, Great Wall Motor and Geely, are investing in chip development, manufacturing and packaging.
The accelerating domestic efforts from automobile makers to chip companies are in line with Beijing's ambition to 100% homemade chips for the automobile industry.
The change doesn't come without teething problems.
Bank of America Global Research's Head of China Autos, Ming Hsun Lee, says that local chips (meaning, those made in China, but not developed in-house by the automaker) could result in integration challenges. Nvidia built its Drive platform to be very open and work with virtually anything a carmaker can throw at it. But local chips could prove to be problematic with limited integration potential.
Locally-developed chips are expected to make up between 15% and 20% of China's automotive components in 2025. That's up from 9% in 2024 and is expected to reach around 50% within five years.
100%: Are Vans The Perfect EV?
I know minivans are a polarizing vehicle for many. It's kind of insane to me that people hate them so much. Maybe it's the stigma of emasculation that prevents folks from hopping behind the wheel and driving what is probably the most versatile use of space on four wheels. Or maybe it's the boxy look and bland body lines.
Still, I argue that a van-shaped EV like the PV5 makes a ton of sense. You've got a ton of room inside, gobs of lockable storage and so much modularity with seating that it'll make your head spin. And let's be real, they can be some seriously comfortable road trip vessels.
Are vans the best kind of EV out there? If not, what would make the perfect EV for you? Let me know in the comments.
