HIGHLIGHTS
- Difficult to produce 20 million Tesla electric cars by 2030
- Difficult to reduce the cost of electric vehicles in comparison to internal combustion engines at least in the next decade
FULL ARTICLE
Shortage of raw materials for battery production
At the Future of Car Conference, Tesla CEO Elon Musk recently stated that the supply of raw materials for battery production would become increasingly limited and may last for the next three years.
Not only Elon Musk, Mr. Herbert Diess, CEO of Volkswagen also emphasized: “We need energy, the charging network, infrastructure, cars. However, we also need batteries and raw materials very much”.
Unlike prior years, no executive has reportedly stated more extensive sales or production targets for electric vehicles or batteries this year. Accordingly, Tesla’s CEO is concerned about its ability to reach its target of producing 20 million electric cars by 2030. On the other hand, Volkswagen, which has long set a target of outselling Tesla in terms of vehicle sales before 2025, has lessened this plan.
Concerned about the decline in electric vehicle demand
In a recent survey report, Wells Fargo bank found that the prices of some of the raw materials used to make a Tesla Model Y have risen sharply. The bank warned that due to the increase in the cost of battery materials, the cost of electric vehicles would be difficult to reduce compared to internal combustion engine cars in at least the next decade. As a result, demand for electric vehicles may eventually fall.
In China, one of the world’s largest electric vehicle marketplaces, incentives for electric vehicle purchases will be reduced year by year, making it even more difficult for low-income earners to purchase a vehicle.
Changing the game of electric car manufacturing
Supply shortages are forcing automakers to rely more heavily on mining and energy companies.
To improve this situation, Mercedes-Benz boss Ola Källenius suggested that the EU should consider sales agreements with mineral-rich countries such as Australia, India, or South American countries. At the same time, the EU should also forge closer ties with economies with more resources for electric vehicle production.
Meanwhile, Tesla’s boss shared that the business will not rule out buying a mining company to secure the source of raw materials needed to increase the production of electric vehicles.
Thanh Ha
The Battery war: Who owns the key?
