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Switching to electric mobility will cost the automotive industry almost 67,000 million by 2030

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Archive – Several workers in the new Seat Test Center Energy (TCE), on December 15, 2021, in Martorell, Barcelona, ​​​​Catalonia, (Spain). The TCE is a new battery laboratory in which SEAT will develop and test various battery systems – David Zorrakino – Europa Press – Archive


According to a report by consulting firm AlixPartners, published Thursday, vehicle manufacturers and their suppliers worldwide will face a cost of $70,000 million (€66,650 million) by 2030 to convert their supply chains from internal combustion engine vehicles to electric vehicles.

The company believes that between 40% and 60% of these estimated costs can be reduced if companies are “proactive” about EV transitions in their respective supply chains.

In any case, AlixPartners has warned that the semiconductor shortage will continue to affect the supply of manufacturers at least until 2024. In addition, AlixPartners warned that the rise in the cost of raw materials has not yet fully reflected in the economic performance of companies.

In the US, raw material costs for internal combustion engine vehicles are $3,662 per vehicle, more than double pre-pandemic levels. However, the material costs for battery electric vehicles are significantly higher, reaching $8,255 (€7,859) per vehicle.

This large difference is due to the prices of cobalt, nickel and lithium. In fact, AlixPartners thinks it’s “complicated” to bring down the cost of materials for electric vehicles as lithium-ion battery prices are impacted by commodity inflation and material shortages.

Regarding the charging infrastructure, a critical point for electric vehicles, AlixPartners sees investments of 48,000 million (45,700 million euros) by 2030 in the USA alone as necessary. So far, however, only investments of 11,000 million (10,473 million euros) have been committed.

Source europapress.es

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