The Electric: In 2024, a New Reality for the EV and Battery Industries
The Electric: In 2024, a New Reality for the EV and Battery Industries The Information
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Automakers Face Changing Landscape in 2023
Introduction
For automakers, the year 2023 began with chronic shortages and soaring prices of key metals used in batteries. Electric vehicles (EVs) were in short supply, and consumers seemed prepared to buy any EV they could get their hands on, almost regardless of the price.
The Shift in the Market
Current Situation
The year is unexpectedly ending quite differently. The world is now awash in battery-grade lithium and nickel, leading to a significant decrease in their prices by 76% and 44%, respectively, year to date.
Impact on Carmakers
Concerns and Actions
Carmakers are worried about the slow growth of EV sales compared to their initial expectations. As a result, they have taken the following actions:
- Slashed EV prices to eliminate unanticipated inventory on their sales lots.
- Scaled back plans for future assembly plants.
- Ford cut the capacity of a new lithium-iron-phosphate battery plant it is building in Michigan by 43%.
- Ford also reduced planned spending on EV development this decade by $12 billion.
- General Motors suspended plans to launch its electric Cruise robotaxi in more than a dozen cities, leaving it only in San Francisco.
- General Motors also mothballed the Origin, a six-passenger electric autonomous shuttle outfitted with Cruise technology that began production this year.
Conclusion
Looking Ahead
The changing landscape of the EV market has forced automakers to reassess their strategies. The unexpected abundance of battery-grade lithium and nickel has led to a decrease in their prices, impacting the overall market. Carmakers have responded by adjusting their pricing, reducing production capacities, and scaling back future plans. These developments highlight the need for sustainable development in the automotive industry, aligning with the Sustainable Development Goals (SDGs) set by the United Nations.
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