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

By Tammy D. Neff 3 years ago

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Stellantis CEO Carlos Tavares retains a information convention after conference with unions, in Turin, Italy, March 31, 2022. REUTERS/Massimo Pinca

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MILAN, May 10 (Reuters) – The automotive field faces a shortage of batteries and uncooked supplies in the coming decades as portion of its transition towards electric mobility, the head of Stellantis (STLA.MI) Carlos Tavares explained on Tuesday.

Talking at the FT Potential of the Vehicle 2022 convention, Tavares claimed he could anticipate the industry could experience offer troubles with batteries all around 2025, 2026.

“And if there is no brief offer of batteries then there will be a considerable dependence of the Western world vis-à-vis Asia. That is a little something we can effortlessly foresee,” the CEO of the world’s fourth most significant carmaker said.

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“The speed at which now most people is constructing production capability for batteries is potentially on the edge to be ready to assist the quick changing markets in which we are running,” he explained.

Tavares stated raw content supply could also pose structural troubles in the coming years as electric powered automobiles had been on average 500 kilos heavier than regular combustion engine kinds.

“That means a great deal of uncooked product extraction, that implies ultimately shortage of uncooked elements, that usually means finally geopolitical challenges,” Tavares claimed. “We could not like the way all those uncooked elements are going to be sourced in a handful of several years”.

He reported automakers have been focusing on engineering and were completely ready to “pour” battery electric powered autos on the market place, whilst they and regulators ended up missing eyesight on all extensive expression implications of the mobility transition.

“What is actually following? Where is the clean vitality? Where by is the charging infrastructure? In which are the raw resources? Where by are the geopolitical risks of sourcing individuals raw elements? Who is seeking at the full photo of this transformation?” Tavares mentioned.

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Reporting by Giulio Piovaccari, Modifying by Louise Heavens

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