Included in our guidance is the expectation to achieve 30% to 50% of that in 2023 and the remainder in 2024. This initiative is the result of several factors and demonstrates our continued commitment to closely manage our operations through this transformation and achieve North American margins in the 8% to 10% range through 2025. We expect capital spend to be in the $11 billion to $13 billion range inclusive of $1 billion invested in our Ultium Cells JV. We continue to shift resources to EVs with around 75% of our product specific capital dedicated to EVs and AVs. Even with the increase in capital spending, we expect our adjusted free cash flow to remain strong in 2023. As we said back in November, we expect that clean energy tax credits will be a material tailwind for GM over time because of the work we’ve been doing on vertically integrating the supply chain.
For 2023, we anticipate at least $300 million in EBIT-adjusted benefit and expect this tailwind to increase significantly over the next few years as our cell production ramps and our North America focused supply chain comes fully into place. We’re closely monitoring the dynamic macro environment as well as customer demand to make sure we’re appropriately matching supply with demand. We will take quick and decisive actions on both the supply and the cost side to actively manage the business. What gives us confidence in our 2023 and long-term objectives is the work we’ve already done to position ourselves for success, repeatedly executing on our commitments and our ability to manage through a very challenging and dynamic environment. With a compelling EV and ICE product portfolio, long-term supply chain commitments, extraordinary manufacturing capabilities, a strong balance sheet, and our amazing team, I’m confident we’ll continue to enhance the customer experience and deliver compelling growth on both the top and the bottom line.
Mary?
Mary Barra: Okay, so with that, I think we’re ready operator to start taking your questions.
Operator: Thank you. Our first questions come from the line of Dan Ives with Wedbush. You may go ahead, sir.
Daniel Ives: Yes, thanks. A great quarter. Can you just talk about supply in terms of from a battery and lithium perspective? It just seems like you guys have being much more aggressive, making sure you have that supply through 2025. Just talk about some of those efforts and just giving you more and more confidence on the sort of EV targets over the coming years? Thanks.
Paul Jacobson: Yes, good morning, Dan. I’m really proud of what the team has done. You know, our collaborative effort across supply chain finance, business development have led to a, what I think is the strongest portfolio of battery raw materials going forward. We’ve fully secured all of our battery raw materials through 2025 and as you can see from the announcement today with the investment in Lithium Americas and the supply that we’ll be able to get from the Thacker Pass, we’re making rapid improvements and increases in our battery raw materials for 2026 and beyond. That is core to our strategy. What we’ve done, we’ve talked about being creative because what we’re really trying to do is to create a portfolio that is in it for the long-term.
So whether it’s a combination of spot price movements, fixed price contracts across the board, we’re looking at ways to creatively manage that and make sure that we’re running it as a partnership. We want our partners to be successful too, especially in this space as we’re developing new sources of these raw materials and this is such a great example of that partnership mentality coming to fruition.
