The world’s top automakers are preparing to spend more than a trillion dollars by the end of the decade on developing and producing electric vehicles, batteries and the raw materials to support production.
According to Reuters, which analyzed public data and projections released by carmakers, the investment of $1.2 trillion (all figures in U.S. dollars) is more than double its most recent calculation from just a year ago.
The companies plan to build 54 million battery electric vehicles in 2030, making up more than half of the total vehicle parc, Reuters found.
With so many EVs, Reuters cited data from Benchmark Mineral Intelligence and manufacturers that showed automakers and their battery partners are planning to install 5.8 terawatt-hours of battery production capacity by 2030.
Tesla plans to build 20 million EVs in 2030 — it hopes to sell 1.5 million vehicles in 2022. This will require an estimated 3 terawatt-hours of batteries. The company recently announced it was working on a smaller vehicle platform with the aim to cost half as much as the Model 3 and Model Y.
Volkswagen is putting aside more than $100 billion to build out its global EV portfolio. It will also add new battery “gigafactories” in Europe and North America while locking up supplies of key raw materials.
Toyota, including its Lexus brand, is investing $70 billion to electrify vehicles and produce more batteries. It expects to sell 3.5 million EVs in 2030 by offering 30 different models.
Ford is now committed to spending $50 billion and at least 240 gigawatt-hours of battery capacity. It’s working with partners to produce about three million BEVs in 2030. That would represent half its total volume.
Mercedes-Benz is investing at least $47 billion for EV development and production — about two-thirds of that is to boost its global battery capacity with partners to more than 200 gigawatt-hours.
Meanwhile, BMW, Stellantis — which includes the Alfa Romero, Maserati and Chrysler brands — and General Motors each have earmarked at least $35 billion for EVs and batteries.