Manufacturers to double investment in electric cars

Car companies have seen high profitability in electric cars and higher-than-expected demand. That is why the main brands have increased their bets in this regard and the total expenditure would be around 1.2 billion dollars until 2030 for the development and production of electric vehicles. Said investment also includes its components, such as batteries or the acquisition of fundamental raw materials. 

The last year 2021, Reuters carried out the first study in this regard. In this, they made it clear that the investment estimates by the brands and companies related to automobiles would be around 600 billion dollars. This study has recently been revised to update the data. However, the new figure suggests that they fell short of the estimate since the total investment would have doubled in just one year

Following the own forecasts of the main car manufacturers in the world, the estimate is that by the year 2030 around 54 million battery electric vehicles will be manufactured, which will represent 54% of the total production of vehicles in the world. . In support of this production level, the manufacturers and their respective partners specialized in the manufacture of batteries expect to obtain a total of 5.8 TWh of annual capacity in said components, as published in Benchmark Mineral Intelligence.

At the head of the list would be Tesla, the North American firm with one of the highest growth forecasts worldwide. The plan that Elon Musk himself made public for the future proposes the manufacture of 20 million electric vehicles by the year 2030. This will lead to the need to produce around 3 TWh annually in battery capacity, which is presented as a challenge for the brand and the industry. 

This general productive capacity (between cars and batteries) for Tesla would mean multiplying its current production by 13 since it is estimated that by this year 2022 the company can reach -or approach- 1.5 million electric cars produced. This will lead the company to invest several hundred billion dollars

Mercedes EQE SUV

However, other major automakers also have huge growth and investment plans for the next decade. The Volkswagen Group would be positioned as second on the list (behind Tesla) with more than 100 billion dollars allocated to the development of its electric cars, building or adapting its factories in Europe and America, and acquiring necessary supplies in the form of raw materials. 

The next company in this particular ranking is Toyota Motor. The group crowned by Toyota itself is investing more than 70 billion dollars in such a section. Their forecasts speak of selling around 3.5 million battery-powered electric cars by 2030. By then, they hope to have a range of up to 30 “zero-emission” models throughout the brand conglomerate.

Next is Ford, with more than 50 billion dollars in investment. North Americans aim to manufacture up to 3 million electric cars in 2030, which would mean half of their current total volume. Mercedes-Benz would have allocated 47 billion dollars for this purpose, while BMW, Stellantis, and General Motors present an individual investment of 35 billion dollars.

Elenor Kling

A tech lover and generally a car enthusiast who likes to do a lot of research and share knowledge.

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