Electric Vehicles: Businesses in the Investment Race
In 2021, 5% of new motor vehicle registrations were for zero-emission vehicles, according to Statistics Canada.
The world's largest automakers plan to spend nearly $1.2 trillion by 2030 developing and producing millions of electric vehicles, plus the batteries and raw materials needed for production, analysis shows by Reuters of public data and company-published projections.
Previously unpublished vehicle electrification investment amount dwarfs previous estimates from Reuters and is more than double the most recent calculation published a year ago.
For comparison, the market capitalization of Alphabet, the parent company of Google and Waymo, is $1.3 trillion.
Automakers have expected to manufacture 54 million electric vehicles in 2030, more than 50% of total vehicle production, analysis shows.
To sustain such a level, they plan, along with their battery manufacturing partners, to install 5.8 terawatt hours (TWh) of battery production capacity by 2030, data from Benchmark Mineral Intelligence and manufacturers shows.
Tesla's goals in the field are the most ambitious, its chief executive Elon Musk having presented a plan to build 20 million electric vehicles by 2030, which would require 3 terawatt hours of batteries.
Musk said in late October that Tesla was already working on a smaller vehicle platform that would be priced at half the Model 3 and Model Y.
Although Tesla hasn't disclosed all of its spending plans, such growth — 13 times larger than the 1.5 million vehicles it hopes to sell this year — will cost hundreds of billions of dollars, according to an analysis by Reuters of Tesla financial information and forecasts for global demand for electric vehicles and production of batteries and battery minerals.
A technician attaches a logo to a car at the Volkswagen Group's electric car model production line in Zwickau.
The German Volkswagen, although behind Tesla, also has ambitious plans until the end of the decade. The group plans to spend more than $100 billion on developing its global portfolio of electric vehicles, building new battery giga-factories in Europe and North America, and securing raw material supplies.
Toyota Motor plans to invest $70 billion to electrify vehicles and produce more batteries, and expects to sell at least 3.5 million battery-electric models in 2030. It plans to produce at least 30 different battery-electric models. and hopes to transform the entire Lexus lineup during this period.
Ford Motor continues to increase the level of its spending on new electric vehicles – which now stand at $50 billion – and to achieve at least 240 gigawatt hours of battery capacity with its partners.
The body of an all-electric Ford F-150 Lightning prototype truck at the Rouge Electric Vehicle Center in Dearborn, Michigan.
The automaker aims to produce about three million battery electric vehicles by 2030, half of its total volume. Mercedes-Benz has earmarked at least $47 billion for the development and production of electric vehicles, nearly two-thirds of which to expand its global battery capacity with its partners to more than 200 gigawatt hours.
BMW, Stellantis and General Motors each plan to spend at least $35 billion on electric vehicles and batteries. Stellantis presented the most aggressive development program in batteries: a planned capacity of 400 gigawatt hours with partners by 2030, including four factories in North America.