Automakers Invest Trillions in Electric Vehicle Production

EV investment figures surpasses previous forecasts and more than triple the most recent calculation provided just a year ago. According to Reuters, automakers intend to construct 54 million battery electric vehicles by 2030, accounting for more than half of overall vehicle production.

According to statistics from Benchmark Mineral Intelligence and the manufacturers, carmakers and their battery partners intend to construct 5.8 terawatt-hours of battery production capacity by 2030 to accommodate that historic level of EVs.

Tesla is leading the effort, with CEO Elon Musk outlining a plan to create 20 million electric vehicles by 2030, requiring an estimated 3 terawatt-hours of batteries. Musk stated in late October that Tesla is already working on a smaller vehicle platform that will be half the price of the Model 3 and Model Y. Tesla’s spending intentions have not been fully published, but a 13-fold increase in manufacturing over an expected 1.5 million vehicles will cost billions of dollars.

Volkswagen, despite lagging behind Tesla, has ambitious ambitions until the end of the decade, aiming for well over USD 100 billion to expand its worldwide EV portfolio, create additional battery “gigafactories” in Europe and North America, and secure supply of raw materials

Toyota is investing USD 70 billion to electrify vehicles and build more batteries, and the company intends to sell at least 3.5 million battery electric vehicles by 2030. It intends to launch at least 30 distinct BEVs over the next three years, with the goal of transitioning the whole Lexus lineup to battery electric.

Ford continues to increase its expenditure on new EVs, which is now at USD 50 billion, as well as at least 240 gigatonne-hours of battery capacity with its partners, with the goal of producing about 3 million BEVs by 2030, or half of its overall volume.

Mercedes-Benz has set aside at least USD 47 billion for EV development and production, roughly two-thirds of which will be used to increase its global battery capacity with partners to more than 200 gigatonnes.

BMW, Stellantis, and General Motors all intend to invest at least USD 35 billion on EVs and batteries, with Stellantis outlining the most ambitious battery strategy: By 2030, the company hopes to have 400 gigatonnes of capacity with partners, including four reactors in North America.