Auto Industries Pour Record Amounts into Manufacturing Electric Cars

In a significant shift towards electric mobility, automakers worldwide have announced ambitious plans to invest billions in electric vehicles (EVs) and battery production. Here's a roundup of the major announcements from leading manufacturers.

Elon Musk, CEO of Tesla, has hinted at a 13-fold increase in manufacturing, although the exact spending details have not been disclosed. Tesla aims to produce 20 million electric vehicles by 2030, requiring an estimated 3 terawatt-hours of batteries.

BMW, Stellantis, and General Motors are joining the race, each planning to invest at least USD 35 billion on EVs and batteries. These automakers aim to construct 54 million battery electric vehicles by 2030, accounting for over half of overall vehicle production.

Toyota intends to invest USD 70 billion in electrifying vehicles and battery production. The Japanese giant plans to launch at least 30 distinct battery electric vehicles over the next three years and aims to sell at least 3.5 million battery electric vehicles by 2030. Toyota also aims to transition the whole Lexus lineup to battery electric.

Volkswagen aims to invest well over USD 100 billion to expand its worldwide EV portfolio by the end of the decade. The German automaker plans to create additional battery "gigafactories" in Europe and North America and aims to secure supply of raw materials for its EV production. Volkswagen plans to produce batteries with a unified cell format targeted for up to 80 percent of its electric vehicles by 2030, aiming for scalable solid-state battery technology.

Ford is investing USD 50 billion in new EVs and has a goal of producing about 3 million BEVs by 2030, or half of its overall volume. Ford has at least 240 gigatonne-hours of battery capacity with its partners.

Stellantis outlines the most ambitious battery strategy, aiming to have 400 gigatonnes of battery capacity with partners, including four reactors in North America.

Mercedes-Benz has set aside at least USD 47 billion for EV development and production, with a goal of increasing global battery capacity with partners to over 200 gigatonnes.

Tesla is working on a smaller vehicle platform that will be half the price of the Model 3 and Model Y.

The EU anticipates a demand of about 1,200 gigawatt-hours per year for electric vehicle batteries in the next decade. In North America, battery production capacity is expected to reach around 400 gigawatt-hours per year by 2025, with some projects adding capacities such as a 49 GWh plant in Canada. Overall, the major producers project gigawatt-hour scales from hundreds up to over a thousand by 2030 globally, though exact production plans vary by manufacturer and region.