Stellantis CEO warns of electric vehicle battery shortage, followed by lack of raw materials

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  • Carlos Tavares expects a shortage of EV batteries by 2024-2025, followed by a shortage of raw materials for vehicles by 2027-2028.
  • The potential for shortages has been the focus of Wall Street analysts when gauging automakers’ ratings and their ability to sell EVs.
  • Stelantis – the world’s fourth largest carmaker – was formed last year by the merger of Fiat Chrysler and France-based Groupe PSA.

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Stelantis CEO Carlos Tavares said he expects a shortage of the batteries and raw materials needed to build electric vehicles in the coming years, as the global automotive industry is set to meet the expected growth in consumer demand and government regulations for EVs. is the axis.

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Tavares said he expects a shortage of EV batteries by 2024-2025, followed by a shortage of raw materials for vehicles that will slow EV availability and adoption by 2027-2028.

“The speed at which we are trying to get everyone together for the right cause, which is fixing the issue of global warming, is so high that there is no time to adjust the supply chain and production capacity,” He told the media on Tuesday after the company. Announced a new $2.5 billion EV battery plant in Indiana.
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Stelantis – the world’s fourth largest carmaker – was formed last year by the merger of Fiat Chrysler and France-based Groupe PSA.

Tavares used the potential for scarcity to urge policymakers globally to stop aggressively pursuing targets for EVs.

European regulators have been the most aggressive in enforcing new EV rules, with those in the United Kingdom announcing plans to ban the sale of vehicles with conventional internal combustion engines by 2030, ahead of the previous target date of 2040. The Biden administration also announced last year a goal for half of all vehicles in the US to be EVs by the end of the decade.

“Now all the car companies, at least the best ones, are now moving at full speed, in full execution mode, going as quickly as possible,” Tavares said. “The only thing that really helps deliver is consistency. Stop playing with the rules. Leave the rules as they are and let people do things properly.”

Tavares expects a bottleneck in batteries first, as more EV production plants come online. He then expects those facilities to create a shortage of raw materials for the vehicles. Such shortfalls have been the focus of Wall Street analysts when assessing automakers’ ratings and their ability to sell EVs.

This is not the first time Tavares has warned of such a shortfall, but it is the most detailed.

“The thing is, when we want to move very fast with large magnitudes and there’s not enough feasibility studies, we can bump into things like this,” Tavares said. “You will see that the electrification path, which is a very ambitious route, in a time window that has been set by the administration, is going to hit the supply side.”

Automakers globally have set sales expectations for some brands to exclusively offer EVs by the end of this decade, if not sooner.

Stelantis is investing $35 billion in EVs and expects to achieve annual sales of 5 million electric vehicles globally by 2030. This will include 50% of all passenger car sales in Europe and 50% of passenger car and light-duty truck sales in North America, a target in line with the government.

Credit: www.cnbc.com /

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