Major Global Automakers Plan to Invest Nearly $1 Trillion in Electric Vehicles and Batteries by 2030
June 09,2023
According to public data and industry forecasts, major global automakers are currently planning to invest in research and production of electric vehicles and vehicle batteries and the purchase of raw materials necessary by 2030, totaling almost US$1 trillion. This is a significant increase from previous forecasts, and the latest figures show that the amount is more than double what was released only one year ago. This staggering investment is not far from the market value of 1.3 trillion US dollars for Google's parent company, Alphabet.
Electric Vehicles will Account for Over 50% of All Vehicle Production by 2030
The need for electric vehicles has become increasingly important with the rise of climate change and efforts to reduce carbon emissions. According to Reuters' analysis of public data, international automakers have estimated that the total output of pure electric vehicles will reach 54 million by 2030, accounting for more than 50% of all vehicle production. This is a significant increase from current production levels, and it highlights the need for massive investment in research and development to support this kind of production.
Massive Investment in Battery Technology is Required to Support Unprecedented Production
In order to support this unprecedented level of electric vehicle production, according to data from Benchmark Mineral Intelligence and automakers, major automakers and their battery maker partners currently plan to install a total installed battery capacity of 5.8 TWh by the end of 2030. This is an enormous amount of battery capacity, and it will require significant investment in battery technology to achieve it.
Tesla Plans to Lock in 200 Million Electric Vehicles by 2030, Requiring Significant Investment
The largest planned investment among automakers is Tesla, whose CEO Elon Musk has announced an ambitious production plan to lock in 200 million electric vehicles by 2030, which is 13 times higher than the 1.5 million expected this year. The required battery capacity is estimated to reach 3 TWh. This kind of production will require a significant investment in research and development, as well as in manufacturing and supply chain management.
Volkswagen to Invest Over $100 Billion to Set Up a Global Electric Vehicle Portfolio
The second largest investor is Germany's Volkswagen, which plans to invest more than US$100 billion by 2030 to set up its own global electric vehicle product portfolio, as well as new vehicle battery factories in Europe and North America, and to lock in important raw material supplies. This kind of investment is necessary to support the growing demand for electric vehicles, and it will require significant investment in research and development as well as in manufacturing and supply chain management.
Toyota will Invest $70 Billion to Produce Electric Vehicles and Batteries and Sell 3.5 Million Pure Electric Vehicles by 2030
The third-ranked Japanese automaker is Toyota, which is expected to invest 70 billion US dollars to produce electric vehicles and batteries and to sell at least 3.5 million pure electric vehicles by 2030. This kind of investment is necessary to support the growing demand for electric vehicles, and it will require significant investment in research and development as well as in manufacturing and supply chain management.