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Automakers Drive Up Spending on EV and Battery Development

Automakers will spend nearly $1.2 trillion through 2030 to develop and produce millions of electric vehicles, EV batteries and raw materials.

October 21, 2022
Automakers Drive Up Spending on EV and Battery Development

Automakers will spend nearly $1.2 trillion through 2030 to develop and produce millions of electric vehicles, EV batteries and raw materials.

IMAGE: Getty Images

2 min to read


The world's top automakers plan to spend nearly $1.2 trillion through 2030 to develop and produce millions of electric vehicles (EVs) as well as EV batteries and raw materials, according to a Reuters analysis of public data and projections released by OEMs.

Automakers have forecast plans to build 54 million battery electric vehicles in 2030, representing over 50% of total vehicle production, according to the analysis.

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As more EVs are made, automakers and their battery partners also plan to install 5.8 terawatt-hours of battery production capacity by 2030, according to data from Benchmark Mineral Intelligence and manufacturers.

Tesla leads the charge toward EVs, with Chief Executive Elon Musk outlining a plan to build 20 million EVs in 2030, requiring around 3 terawatt hours of batteries. Musk reports the automaker is working on a smaller EV vehicle platform that will cost half as much as the company’s Model 3 or Model Y.

The Reuters analysis forecasts that Tesla’s forecasted growth, a 13-fold increase over the 1.5 million vehicles the company is expected to sell in 2021, will cost hundreds of billions of dollars.

Volkswagen also has ambitious plans to build out its global EV portfolio, add new battery giga factories in Europe and North America, and lock up supplies of key materials.

Toyota Motor Corp. will invest $70 billion to electrify vehicles and produce more batteries. The Japanese automaker expects to sell at least 3.5 million battery electric models (BEVs) in 2030. The automaker plans to sell at least 30 different BEVs and expects to transition the entire Lexus range to battery electric by 2030.

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Ford Motor Co. plans to spend an estimated $50 billion on EVs and plans at least 240 gigawatt-hours of battery capacity with its partners. The automaker aims to produce around 3 million BEVs in 2030.  

Mercedes-Benz has set aside $47 billion for EV development and production, nearly two-thirds of which will boost its global battery capacity with partners to over 200 gigawatt-hours.

BMW, Stellantis, and General Motors have each earmarked around $35 billion on EVs and batteries. Stellantis has planned 400 gigawatt-hours of capacity with partners by 2030, including four plants in North America.

 

Originally posted on Auto Dealer Today

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