Automakers’ $1.2 trillion spending target on electric vehicles

The world’s leading automakers plan to spend an estimated $1.2 trillion by 2030 on the production of electric vehicles, batteries and raw materials to be used in production.

The size of the investment in electric vehicles has not been officially revealed, the amount mentioned in the news was calculated based on investment estimates previously published by Reuters and is more than double the amount published a year ago.

If you look at Alphabet, which includes Google and Waymo, to understand the size of the investment, the company’s market value is $1.3 trillion.

PRODUCTION PLAN FOR 54 MILLION VEHICLES

According to analysts, automakers plan to produce 54 million battery electric vehicles by 2030. This number will correspond to more than 50 percent of total vehicle production.

Car and battery manufacturers aim to increase their battery production capacity to 5.8 terawatt hours (TWh) by 2030 to be able to produce electric vehicles at unprecedented levels, according to Benchmark Mineral Intelligence and manufacturer data.

Tesla is the leader in investments in electric vehicles.

The company’s CEO outlined his plan to produce 20 million electric vehicles by 2030. It is believed that 3 terawatt-hour batteries will be needed for this production.

Volkswagen plans to spend $100 billion to build out its global electric vehicle portfolio by 2030, setting up new battery “factories” in Europe and North America, thereby securing supplies of key raw materials.

TOYOTA, FORD AND MERCEDES-BENZ TARGETS

Toyota aims to invest $70 billion to produce electric vehicles and increase battery production, and sell at least 3.5 million battery electric vehicles by 2030.

Ford continues to increase the budget for new electric vehicles.

The company, whose current investment budget is $50 billion, aims to produce approximately 3 million electric vehicles by 2030. This level corresponds to half of Ford’s current production volume.

Mercedes-Benz allocates at least $47 billion for electric vehicle development and production, while BMW, Stellantis and General Motors each plan to spend at least $35 billion on electric vehicles and batteries. (REUTERS)