US Big Three auto producer General Motors (GM) will phase out diesel and gasoline engine production by 2035, Kallanish reports.

GM announced Thursday its electrification strategy, which includes the objective of carbon neutrality across its global production operations by 2040. The company aims to eliminate tailpipe emissions from new light-duty vehicles by 2035 by offering 30 all-electric vehicle (EV) models globally by mid-decade, with 40% of the company’s US models offered as battery electric vehicles by the end of 2025.

GM’s share price rose 3.45% to $51.04 at market close on Thursday following the announcement.

The company previously announced in November last year an investment of $27 billion in EVs and autonomous vehicle (AV) development. This investment includes the continued development of GM’s Ultium battery technology, updating facilities to build EVs from globally-sourced parts and investing in new sites.

In order to achieve its carbon-neutral goal, GM states it will source 100% renewable energy to power its US sites by 2030 and global sites by 2035, representing a five-year acceleration of its previously announced global target. The company collaborated with environmental advocacy group the Environmental Defense Fund (EDF) in the development of its strategy.

 “General Motors is joining governments and companies around the globe working to establish a safer, greener and better world. We encourage others to follow suit and make a significant impact on our industry and on the economy as a whole,” says Mary Barra, chairman and chief executive of GM.