Previously anticipated EV (electric vehicle) investments are a drop in an ocean, with major automakers aiming for a vast new EV push by 2030. Carmakers expressed interest in electric vehicles prior to the epidemic and subsequent COP26 session, promising long-term investments. Governments, on the other hand, have pledged to attain net-zero carbon emissions, announced plans to phase out diesel and gasoline vehicles, and pressed key sectors to become green in the previous year. Now, the world’s largest automakers are gaining traction with their EV ambitions for the coming decade.
One of the most significant shifts is several of the world’s top automakers’ short-term investment plans, which are now striving for large electric vehicle fleets within the next decade in response to increased demand and tighter rules on traditional vehicles. According to Reuters research published in November, global manufacturers aim to spend more than $0.5 Trillion on electric vehicles and batteries between now until 2030. This represents a $200 billion rise in just three years.
However, there is concern that the rush to invest in electric vehicles could result in an oversupply. While zero-carbon emission standards are being implemented in cities like London and Paris, which will surely lead to a rise in demand, it is still unclear how high uptake volumes will rise by 2030.
Despite concerns about demand, several corporations are pushing ahead with their electric vehicle expenditures. Toyota just announced preparations for a battery facility in North Carolina for electric automobiles valued at $1.29 billion. From 2025 onwards, Toyota aims to build 200,000 lithium-ion batteries in their factory for its all-electric as well as plug-in hybrid EV fleet. As the company’s EV production grows, the output might reach 1.2 million per year. Around 1,750 jobs will be created at the new site.
In October of this year, Toyota announced a $3.4 billion boost in its electric vehicle investments. Because of the state’s high levels of the renewable energy production, the business chose North Carolina as the location for its battery production as part of this strategy. This is part of Toyota’s overall plan to attain carbon neutrality by the year 2050.
In recent months, Nissan has made similar commitments, announcing intentions to invest $17.6 billion in its electric vehicle fleet as part of its ‘Ambition 2030’ plan. By 2030, the business anticipates that electric vehicles will make up half of its sales, thanks to the introduction of many new models to meet a variety of consumer needs. By the end of the decade, Nissan hopes to sell 75% electrified and hybrid cars in Europe, 55% in Japan, and 40% in the United States and China.
The automaker plans to roll out an all-solid-state battery portfolio by 2028, with a prototype facility in Yokohama set to debut in 2024. This ground-breaking new battery type would drastically cut charging times. This is a portion of a plan to cut the cost of electric vehicle batteries to $75 for every kWh by 2020, roughly half of the current price.