The automotive industry is preparing for a future where consumers can purchase a wide range of powertrain types. Although internal combustion engines (ICEs) will continue to represent a large portion of the market, battery electric and hybrid options will grow in popularity and become a much more widespread option. OEMs are preparing for this reality but have recently begun to focus their investments into a narrower selection of offerings.
Electric and hybrid vehicle technologies will require significant investment over the coming years to make switching from ICEs an even more attractive option. This includes performing innovative research and development projects to improve energy storage systems, electric motors, power electronics, and vehicle charging infrastructure. Suppliers and technology developers that can supply components delivering reliability and value in these areas will be poised for long-term success, which makes this an opportunity that should not be overlooked.
President Joe Biden's strategy to make the U.S. a powerhouse in electric vehicles will include boosting domestic recycling of batteries to reuse lithium and other metals, according to government officials.
As Biden makes fighting climate change and competing with China centerpieces of his agenda, the administration is set to wrap up a 100-day review on Friday of gaps in supply chains in key areas, including EVs.
These gaps include the minerals used in EV batteries and consumer electronics. The administration is also looking for ways to reduce metal usage in new battery chemistries.
Reports from various government agencies will be submitted to the White House, a process Biden ordered in an executive order earlier this year. Parts of the reports could be released publicly as soon as next week.
Democrats are pushing aggressive climate goals to have a majority of U.S.-manufactured cars be electric by 2030 and every car on the road to be electric by 2040.
Many Republicans and conservatives contend much of this is unnecessary because the private sector already has aggressive goals to do the same things. Some experts also question the true environmental benefits of EVs, which still largely rely on power generated by power plants.
Securing enough cobalt, lithium and other raw materials to make EV batteries is a major obstacle, with domestic mines facing extensive regulatory hurdles and environmental opposition.