Carlos Tavares, chief executive of Stellantis, said the automotive industry would face shortages of batteries and raw materials in the coming years.
Tavares believes the industry’s ongoing shift to electric vehicles is inevitably leading to supply problems, especially with batteries, by 2025 or 2026 when their demand will reach new heights. Stellantis’s boss also expressed concern about the lack of regulators’ vision to help with the EV shift.
“If there is a shortage of batteries, the West will have a significant dependence on Asia. This is something we can easily guess, “Tavares said during a recent speech Financial times The future of the Car 2022 conference. “The pace at which everyone is now building production capacity for batteries may be able to support rapidly changing markets where we are working.”
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Tavares added that the supply of raw materials, especially those needed to build light frames for EVs to counteract the weight gain induced by their heavy batteries, could also be a challenge.
“It means a lot of raw material extraction, it means a lack of raw materials in the end, it means ultimately a geopolitical risk,” he said. “We may not like the way these raw materials will be released in a few years. What next? Where is the clean energy? Where is the charging infrastructure? Where is the raw material? Where is the geopolitical risk of sourcing that raw material? Who sees the full picture of this transformation? “
Like many of its rivals, Stalantis has great ambitions for an all-electric future. In March, the company said that all its brands would be all-electric in Europe by 2030 and the firm would reach net zero by 2038. From 2024, all new models launched from Stellantis brands will include all-electric variants. Commercial vans and light-duty pickups from Ram, off-road 4×4 and family SUVs from jeeps, performance muscle cars from Dodge and family cars from Chrysler.
Stellantis is preparing more than 75 EVs by 2030, of which more than 25 will be for the US market. The carmaker wants to increase its battery capacity to 400 GWh, an increase of 140 GWh over the previous plan.