Automotive industry faces long term battery, raw material supply issues, Tavares says

Lyle Ellerbee

Stellantis CEO Carlos Tavares holds a news conference just after conference with unions, in Turin, Italy, March 31, 2022. REUTERS/Massimo Pinca

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MILAN, Could 10 (Reuters) – The automotive marketplace faces a lack of batteries and raw components in the coming yrs as portion of its changeover in the direction of electric powered mobility, the head of Stellantis (STLA.MI) Carlos Tavares said on Tuesday.

Speaking at the FT Potential of the Auto 2022 meeting, Tavares claimed he could foresee the marketplace could suffer offer problems with batteries all-around 2025, 2026.

“And if there is no shorter offer of batteries then there will be a substantial dependence of the Western globe vis-à-vis Asia. That is something we can conveniently foresee,” the CEO of the world’s fourth major carmaker explained.

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“The pace at which now every person is setting up manufacturing potential for batteries is possibly on the edge to be in a position to assistance the quick transforming markets in which we are operating,” he claimed.

Tavares explained raw materials offer could also pose structural difficulties in the coming yrs as electric automobiles had been on ordinary 500 kilos heavier than classic combustion motor types.

“That signifies a great deal of raw material extraction, that means eventually shortage of raw resources, that means at some point geopolitical risks,” Tavares stated. “We may possibly not like the way those uncooked supplies are likely to be sourced in a several many years”.

He explained automakers were concentrating on technologies and were being all set to “pour” battery electric powered autos on the market, although they and regulators were being lacking vision on all extended expression implications of the mobility changeover.

“What is actually subsequent? Where by is the clean up strength? The place is the charging infrastructure? Where by are the uncooked resources? Where by are the geopolitical risks of sourcing all those uncooked products? Who is looking at the total image of this transformation?” Tavares mentioned.

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Reporting by Giulio Piovaccari, Modifying by Louise Heavens

Our Requirements: The Thomson Reuters Believe in Ideas.

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