President Biden wants half of all new car sales in the United States to be electric by the end of the decade. It’s a bold goal – and it won’t be easy. It requires a lot of lithium, batteries, EV charging and EV production capacity. After all, it costs billions and billions of dollars.
On Wednesday, the White House announced plans to sign an executive order in support of its goals to boost UNEV’s business. “We believe that now is the time for the United States to lead the way in electric vehicle manufacturing, infrastructure and innovation,” the statement said.
It is a long order. There are only about 2 million EVs on American roads today, and about 2% of all cars sold in 2020 were all electric. That’s an estimated 250,000 out of 16 million light cars. Moreover,
GM has announced plans to invest $ 35 billion in EV development between 2020 and 2025, which includes about $ 8 billion in battery capacity. That results in 1 million sales per year, which provides important legal guidance for investors.
If one million EVs needs $ 8 billion in battery capacity, then 8 million EVs – about 50% of US annual light sales – will need $ 64 billion.
And that’s just battery capacity. Automators also have to assemble and assemble EVs. It is a bit difficult to estimate the cost of a plant because of the constant maintenance and updating of car plants.
(F) It will spend an estimated $ 5 billion to $ 7 billion annually to maintain and modernize its car assembly capacity from 5 million to 6 million. But
(TSLA) has invested an estimated $ 5 billion over the past few years in establishing about 1.5 million new HIV capacity in Shanghai, Germany and Texas – call $ 3 billion for 1 million collection capacity. That means an additional $ 22 billion is needed to upgrade and refurbish the car.
Then there is the filling infrastructure. There are only 150,000 gas stations and a few thousand fast charging stations in the United States. Of course, people plug EVs indoors, but they still have to be able to charge while on the road. The fastest chargers cost about $ 100,000 each. That does not include pricing. To reach that, 50,000 fast charging stations could cost another $ 10 billion.
In the next nine years alone in the United States alone – about $ 100 billion to build enough cars and batteries to reach Biden’s goal and to maintain its infrastructure. That can be done for sure – there will be more companies, more industries, and more years of involvement – and that is good news like EV charging companies.
(CHPT) and as suppliers of capital and automation equipment
(Rock), among others.
It is also good for battery manufacturers like China
(300750 China) China has spent about $ 3 billion over the past 12 months to increase its capacity as China EV sales grow rapidly. All of the world’s largest battery manufacturers are based in Korea, Japan, and China.
The cost does not stop there. Batteries require lithium, so the lithium mining industry must increase its capacity. A.D. By 2020, the world was producing about 400,000 tons of lithium a year, from 2 million to 3 million EV a year. Remember that phones also need a battery.
If the United States is producing 8 million EVs and the rest of the world is doing the same thing, the world should produce 5 million tons of lithium a year. It is a 13-fold increase for the industry. That means good news as far as the eye can see and as good as the miners
(Albi). Albermarle is spending $ 800 million a year on $ 900 million to maintain and expand its operations. Albermarle accounts for approximately 20% of the global lithium market. That does not include lithium refining mainly in China.
All of this will add 40 billion lithium-ion batteries to the United States by 2030, and perhaps 225 billion a year to the world. It is very large and does not include batteries for power storage applications for utilities and consumers.
It’s a huge transition from battery costs and success like Tesla. But it takes hundreds of dollars to get the main thing. It is one of the biggest changes in the car business over the last 100 years or so.
No, stocks do not respond to advertisements. Tesla increased 1.2%
Dow Jones Industrial Average
0.4% and 0.6%, respectively.
The market typically does not respond to the 2030 targets of politicians – but the transition is still underway.
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