It is a fact, or almost, that after 2035 you will not be able to buy a vehicle with a new combustion engine. It is a drastic change and perhaps, too soon, it is not a gradual change and that could be bad for some things such as price and raw materials, a section that is already causing problems. A final vote is still missing and although several countries are not by the regulations, we will surely see after the summer how everything goes ahead.
It will not be a bed of roses, far from it, the manufacturers are already having several problems in this regard and from Volkswagen, the financial director, Arno Antlitz, affirms that some things such as the supply of batteries to replace a sufficient number of vehicles with an engine of combustion are giving manufacturers sleepless nights. It is not something new precisely, the lack of materials to cover the entire fleet or the problems of electricity supply for all vehicles are things that have been considered for some time and could be really important problems for the implementation of the electric car.
It is a challenging goal. We believe it is feasible. The most challenging issue is not to increase the car plants, but to increase the battery supply chain ”. Arno Antlitz, the chief financial officer of Volkswagen speaking to Reuters
The battery supply chain depends on the availability of essential components such as lithium, nickel, manganese, or cobalt, materials used to make batteries in modern electric cars. The price of these materials has skyrocketed and continues to rise from time to time, causing the selling prices of electric cars to rise accordingly. Things are expected to get worse as manufacturers begin to request a greater supply of materials due to the launch of a greater number of models, to replace vehicles with combustion engines.
Volkswagen has several electric models in its catalog under its logo and the brand of other brands of the conglomerate. It is one of the industrial groups with the most electric cars in circulation and given the number of brands that make up the Volkswagen-Audi Group, the problems with the supply of batteries could be greater than in other cases. Especially considering that some brands offer high-performance vehicles, for which more capable batteries are needed.
