Auto Giants to Invest $1.2 Trillion in EVs & Batteries by 2030
World’s leading automobile manufacturers including Tesla, Volkswagen, Ford Motor Co, and BMW are inclined towards the production of electric vehicles and batteries.
They are planning to spend almost $1.2 trillion for the development and production of millions of electric vehicles accompanied by batteries and raw materials according to Reuters analysts.
Analysts have further estimated that the electric vehicle investment figure has doubled to last year. Just to have an idea of this figure, Alphabet, which is the parent company of Waymo and Google, has a $1.3 trillion market cap.
Leading Automakers have plans to produce 54 million electric vehicles by 2030, which constitutes 50% of total automobile production. To bear this high demand automobile markers and their battery partners are planning to increase battery production by installing a 5.8 terawatt-hours production capacity by 2030.
Tesla, the leading EV manufacturer, has outlined its extraordinary plan of producing 20 million EVs in 2030 and for that, they will require 3 terawatt-hours of batteries. Though Tesla has not disclosed its spending proposal, analysts have forecast a cost of hundreds of billions of dollars of spending for this project.
Stellaris, BMW, and General Motors have planned to spend at least $35 billion on the production of EVs and batteries. Toyota Motor Corp is set to expand its electric vehicle industry by investing $70 billion. Their goal is to sell at least 3.5 million electric models in 2030 and diversify their battery-electric models.
Mercedes-Benz has set aside at least $47 billion to increase its electric vehicle production and development. Even Germany's Volkswagen has shown its ambitious plans to build its global EVs portfolio by spending over $100 billion on EVs production. They have also planned to add “Giga factories” in North America and Europe.
Ford Motor Co is improving its investment level in new EV production. Now, with a $50 billion spending budget and at least 240 gigawatt-hours capacity, their goal is to produce 3 million battery electric vehicles in 2030.
