Carlos Tavares, chief executive officer of Stellantis, said an electric vehicle (EV) battery and raw material shortage is coming in the upcoming years. Carlos Tavares said that the shortage occurred due to the biggest transition of automobile industry in the history to remove the diesel and gasoline-powered engines behind in favour of the electrified models.
He said the speed at which they are trying to move all together for the right reason is not fixing the problem of global warming. The CEO of Stellantis expects a shortage of electric vehicle batteries to happen during the 2024 to 2025 period, followed by a shortage of raw materials for the EV batteries. That will cause a decrease in the adoption and availability of electric vehicles by 2027 to 2028.
Since January 2021, the automobile market has been rapidly moving towards electrification, with larger investments coming from the automotive OEMS to both expand research into electric vehicles, and build new battery plants to support the transition.
With the building of new factories, the charging station infrastructure is currently being expanded. Electrify America said it saw a fivefold increase in the charging sessions in 2021. The company also sees no sign of a decrease in demand, and will also build over 1,800 total charging stations with over 10,000 chargers in the region of North America by 2026.
The new construction of the Samsung and Stellantis factories will start in 2022 with a production date in 2025, and a primary annual production capacity of 23 gigawatt hours. This will also increase to 33 GWh in the upcoming years, and the capacity will also increase as the demand increases further.
This new joint venture will invest over 2.5 billion dollars, and it will create 1,400 new jobs in the region of Kokomo and surrounding areas. This battery factory will supply battery modules to a variety of vehicles produced at the North American Assembly plants of Stellantis.