For years, California has pushed ambitious clean air regulations, and the state has had to encourage the auto industry to follow suit. Currently, California is lagging behind automakers in promoting the electrification of domestic vehicles.
Even before state regulators acted Thursday to ban the sale of new internal-combustion vehicles by 2035, Detroit’s big three and their international rivals are increasingly pushing against full-electric product lines. I set aggressive goals.
But while automakers and regulators have aligned goals, mass-producing affordable electric vehicles will require rethinking the supply chain and engineering developed for internal combustion locomotives.
Automakers are scrambling to deal with miners and other suppliers who can meet the growing demand for battery materials. Some are partnering with smaller companies to facilitate the construction of nationwide charging networks. And they’re dismantling their corporate structures and remaking them so that the move to electric vehicles isn’t hampered by the practice of making gasoline-powered products.
“Going all-electric in California doesn’t seem strange or unattainable right now,” said Jessica Caldwell, executive director of insights at automotive market research firm Edmunds. “However, we are confident that each automaker will face challenges in achieving its goals, and some may struggle a bit.”
The 2035 mandate, adopted by the California Air Resources Board, will boost the momentum of electric vehicles already being introduced by the federal government. The climate and energy package, signed by President Biden this month, expands the tax credits available to electric vehicle buyers but includes American-made requirements for EV components that many manufacturers struggle to meet. .
Daniel Sperling, a member of the California State Commission, said he expects backlash against the regulatory change from those with different ideological views. But he said it was an important step in reducing carbon emissions and halting global warming.
“This is the most significant and most transformative action CARB has ever taken,” he said. “This is good not only for the environment, but also for the economy.”
Earlier last year, General Motors said it was aiming to sell only electric vehicles from 2035. California’s mission “aligns very well with GM’s business plan,” said the company’s global public company. Omar Vargas, head of policy, said. online discussion Hosted by The New York Times this week.
Towards the end goal, California regulations require that 35% of new passenger cars sold by 2026 and 68% by 2030 be carbon-free.
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including hybrid Over 1 million electric vehicles sold According to the California Energy Commission, About 15% of new cars Sales in the first half of the year were electric models, up from 9.5% in 2021, according to the California New Car Dealers Association.
But it’s not just because of its large population that state standards matter. To address long-standing air quality problems, California law allows the state to set environmental standards for automobiles that are stricter than federal regulations. More than a dozen states typically follow, representing his one-third of the U.S. car market. And automakers want to adhere to a single strategy.
Determined to anticipate new regulations and create and meet consumer demand, major automakers have established their own timelines for a full transition to EVs. Volkswagen plans to stop selling petrol cars in Europe between 2033 and 2035, and its Audi division will introduce only electric models from 2026.
These automakers and many others spend tens of billions of dollars building factories to produce billions of electric models and assemble them and the necessary battery packs. We just started production at our battery plant in Ohio, with two more battery plants under construction in Tennessee and Michigan. Ford sells an electric version of the F-150 pickup, an electric Mustang sport utility vehicle and an electric delivery van, making him the second largest EV seller in the US after Tesla.
Ford also split its auto business into one division focused on electric vehicles and rapid growth, and another aimed at developing gasoline models, cutting costs and maximizing profits. Sales slow and eventually begin to decline.
Volkswagen began production of an electric SUV at its existing plant in Chattanooga, Tennessee, in July. The company is also looking to stake its supply of raw materials. Volkswagen and Mercedes-Benz this week announced an agreement with the Canadian government to gain access to lithium, nickel and other vital metals and minerals used in batteries. Canada has abundant reserves of these resources, although most mines are still in the development stage.
Volkswagen was already investing in local raw material supplies in various markets, but U.S. government policy has “accelerated” this effort, said Thomas Schmolvon Wester, chief technology officer at the German automaker. Holt told reporters this week.
One reason automakers are embracing the transition rather than resisting it is that consumers have shown a desire for electric models. In the first half of this year, more than 370,000 fully electric vehicles were sold in the United States, 76% increase From the previous year, according to Cox Automotive.
Additionally, manufacturers believe EV sales will continue to accelerate and eventually surpass sales of gasoline cars and trucks. Ford says it has more than 200,000 reservations for its F-150 Lightning electric pickup. GM said Chevrolet, an electric truck that won’t go into production until next year, said Silverado has 150,000 units.
One of the keys to adopting electric vehicles is making them affordable. Models on the market tend to be considerably more expensive than comparable gasoline models. Tesla’s Model Y compact list is priced at over $46,000 before the options are added. Ford’s Mustang Mach-E SUV starts at just under $44,000 for his, about $15,000 more than the similarly sized Escape.
Automakers are working to cut costs as production increases. GM’s new battery plant in Ohio assembles modular HIS battery HIS packs that can be used in nearly any electric car or truck. The company hopes this design will create economies of scale that will allow him to price his EVs within a manageable range for more consumers.
GM CEO Mary T. Barra said in an interview earlier this year.
However, the cost and availability of critical metals and other minerals used in batteries such as lithium, cobalt and nickel remain concerns. A surge in EV production could drive up the price of raw materials and cause shortages.
Ford Chief Executive Jim Farley told analysts on a conference call last month that at most 50% of the raw materials needed to meet the auto industry’s announced EV targets are actually available. .
GM and Ford recently signed a deal with a mining company to purchase lithium and other battery materials. Ford also decided to use two types of his batteries, which require different materials, and agreed to purchase his pack of batteries from the world’s largest producer, the Chinese company CATL.
GM says it has secured access to all the battery raw materials it needs to produce one million EVs in North America by 2025, while Ford has secured the access it needs to produce two million EVs annually. says it has a deal to provide 70% of its batteries. End of 2026.
However, it remains unclear how these companies and other automakers will source enough material for their full electric vehicle lineup.
Another concern is the availability of charging stations. Most states have very few stations, and most rural areas have no stations at all. Home charging stations can reduce the need for commercial chargers, but can cost an EV owner $1,000 or more.
Tesla has built its own network of charging stations, but it needs to keep expanding as it sells more cars. We are working together to develop a charging network. California’s network is the densest in the United States, but electric vehicle owners still complain about long charging wait times.
Jack Ewing When Ivan Penn contributed to the report. Sheila McNeill Contributed to research.