Can the World Make an Electric Car Battery Without China?
It is one of the defining competitions of our age: The countries that can make batteries for electric cars will reap decades of economic and geopolitical advantages. The only winner so far is China. Despite billions in Western investment, China is so far ahead — mining rare minerals, training engineers and building huge factories — that the rest of the world may take decades to catch up, report The New York Times. Even by 2030, China will make more than twice as many batteries as every other country combined, according to estimates from Benchmark Minerals. Here’s how China controls each step of lithium-ion battery production, from getting the raw materials out of the ground to making the cars, and why these advantages are likely to last. Electric cars use about six times more rare minerals than conventional cars because of the battery, and China gets to decide who gets the minerals first and at what price. Although China has few underground deposits of the essential ingredients, it has pursued a long-term strategy to buy its way into a cheap and steady supply. Chinese companies, relying on state assistance, acquired stakes in mining companies on five continents. Click here for the full story.
Volkswagen Aims for 'Margin Parity' on Some EVs by 2025
Volkswagen Chief Financial Officer Arno Antlitz said on Wednesday rising battery material costs mean it will be 2025 before the automaker can build some electric vehicles at the same profit margins as combustion models. "A lot of the margin parity depends on raw materials," Antlitz told the Reuters Automotive Europe conference. When Volkswagen launched its new electrification strategy in July 2021, it said it expected to reach margin parity between combustion engine and electric vehicles "within the next two to three years". Now, Antlitz said, rising materials costs mean the profitability goal depends on VW making its own batteries. "We haven't given up the topic of margin parity," Antlitz said. In "2025 and beyond we plan for margin parity", particularly with models that use Volkswagen's own batteries. Volkswagen is "planning for significant positive margin" on a new EV model, the ID.2, that will go into production in Spain in 2025 and be priced from 25,000 euros, Antlitz said. Click here for the full story.
Used-Car Demand Stays Strong in Spring but Headwinds Remain
Pent-up demand for used cars and trucks converged with tight supply through the first five months of the year to sustain used-vehicle sales, for now assuaging some dealers' year-end 2022 concerns about a potential slowdown in buying. Still, caution is the word on the used-vehicle side. Though demand was healthy through the 2023 spring selling season, gone is the level it was at in 2021, franchised dealership leaders told Automotive News. They are monitoring factors that could dent sales. One is the continuing rise of interest rates, which has consumers browsing with added concern about heftier monthly payments. Dealers are also contending with unremitting scarcity of desired late-model used-vehicle inventory. Jim Farkas, general manager at Germain Honda of Ann Arbor, Mich., so far sees no dampers on buying activity. Though there are fewer people in the market for used vehicles, sales to those who remain are closing at a higher rate. "There aren't as many shoppers, but there are still a lot of buyers," Farkas said. Click here for the full story.
Mercedes-Benz Vans Sets Course for an All-Electric Future
Mercedes-Benz will launch an all-new version of its Sprinter van later this year, and you might think of it as the beginning of the end. The Sprinter has been a critical offering for the German automaker, especially in the U.S. where it has doubled its share of the van market during the last five years, reports The Detroit Bureau. But the familiar, gas-powered version of the van comes at a time when Mercedes is preparing to make a major transition. By 2026, it will debut a line-up of new, all-electric models — and begin phasing out vans running on internal combustion engines, Mathias Geisen, head of Mercedes-Benz Vans, said. “Starting (in) 2026, we will introduce our purpose-built EV architecture VAN.EA,” Geisen explained. “This enables us to consolidate our midsize and large vans down to only one architecture and significantly reduce the complexity of our product portfolio.” Mercedes already produces an all-electric version of the Sprinter van, but the eSprinter is a compromise design based on the conventional, gas-powered model. Click here for the full story.
Building EV Brand Loyalty in an Evolving OEM Market
Automakers must attract and keep electric vehicle customers in an unprecedented marketplace. Providing the best charging options, education and incentives will help win the race. By all indications, 2023 will be a banner year for EV sales. Sales of electrified vehicles (battery-electric, hybrid, plug-in hybrid, and hydrogen fuel-cell) accounted for 14.4 percent of total U.S. light-vehicle sales in the year’s first quarter (510,402) – their highest market share to date, according to Wards Intelligence data. Electrified-vehicle sales for full-year 2023 are projected to reach 2,521,200, or 16.8 percent of the U.S. LV total – up from 12.4 percent for all of 2022, Wards Intelligence data shows. Rosy indications, for sure. As the EV market expands, however, OEMs want to retain those customers “who always bought Ford” in the light of new jazzy models such as the Indi One, Polestar 3 or the Afeela (Sony-Honda joint venture). OEMs are starting to offer a more robust range of vehicle styles and prices to develop their EV customer bases. Click here for the full story.
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