Reports related to this article:
Project(s): View 4 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released May 26, 2022 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Global and U.S. electric vehicle (EV) sales more than doubled in 2021, according to a new report from the International Energy Agency (IEA) (Paris, France). Sales have continued to rise in 2022, although supply-chain issues and increasing raw material prices pose a threat to the sector's growth.
EV sales (including fully electric and plug-in hybrids) worldwide rose to a record 6.6 million, including 630,000 in the U.S., according to the latest edition of the IEA's annual Global Electric Vehicle Outlook. China accounts for about half of the global total, while 2.3 million EVs were sold in Europe. Global sales in first-quarter 2022 reached 2 million EVs, up 75% year over year.
Click on the image at right for a graph showing EV sales from 2016 through 2021, in the U.S., China, Europe and other countries, based on IEA data.
Ongoing policy support has been one of the main growth drivers, according to the agency, as "a growing number of countries have ambitious vehicle electrification targets for the coming decades, and many carmakers have plans to electrify their fleets that go beyond policy targets."
"Five times more electric car models were available globally in 2021 than in 2015, and the number of available models reached 450 by the end of 2021," the agency added.
However, IEA Executive Director Fatih Birol voiced caution.
"Policymakers, industry executives and investors need to be highly vigilant and resourceful, in order to reduce the risks of supply disruptions and ensure sustainable supplies of critical minerals," he said in a press release announcing the report.
The agency points to two main obstacles for the sales growth in the short term: rising prices for minerals critical to EV-battery manufacturing, and supply-chain disruptions caused by the Russia-Ukraine war and COVID-19 lockdowns in some parts of China.
Lithium is a key material in batteries, and the agency notes prices were over seven times higher in May than at the beginning of 2021; prices for cobalt and nickel also jumped. "The cost of battery packs could increase by 15% if these prices stay around current levels, which would reverse several years of declines," the agency noted, adding, "Russia supplies 20% of global battery-grade nickel."
Toyota Motor Corporation (NASDAQ:TM) (Toyota City, Japan) announced earlier this week it will cut global production of all vehicles for June by about 100,000, to roughly 850,000 vehicles (250,000 in Japan and 600,000 units overseas), due to the impact of semiconductor shortages. Meanwhile, due to parts supply shortages caused by the COVID-19 lockdown in Shanghai, China, the company is suspending operations at Japanese plants in May and June, impacting 16 production lines in 10 auto plants out of the 28 lines in 14 plants in the country.
There are short- and long-term obstacles to EV production and adoption, but governments and automakers across the globe are accelerating their efforts to electrify the transportation sector.
China expects "new electric vehicles," which include plug-in electric vehicles, hybrid electric vehicles and fuel-cell electric vehicles, to make up 20% of the country's vehicle market share later this year, well ahead of its 2025 forecast. Meanwhile, the EU Commission recently voted to ban internal combustion engine vehicles for new passenger cars and light commercial vehicles in the EU by 2035.
The Biden administration is targeting 50% electric vehicle sales by 2030. For more information, see August 9, 2021, article - Biden Administration Targets 50% Electric Vehicle Sales by 2030, but Roadblocks Exist.
The U.S. Department of Energy (DOE) announced earlier this month $3 billion in funding from the bipartisan infrastructure law to support the domestic production of EV batteries and components. For more information, see Industrial Info's May 5, 2022, article - $3 Billion Grant Program to Charge Up U.S. Lithium-Ion Battery Production.
For more information on the prospects for EV-battery manufacturing, and various automakers' plans, see Industrial Info's February 7, 2022, article - Automakers Pledge to Electrify Transportation, but Will the Batteries Be There?.
Toyota is at work on a $803 million retooling at its Princeton Truck and SUV Assembly Plant in Indiana. When complete in late 2023, the facility will produce two new brands of electric SUVs. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the detailed project report. Toyota aims for electric vehicles to make up 40% of sales by 2025 and 70% by 2030.
Rivian Automotive Incorporated (NASDAQ:RIVN) (Irvine, California) plans to kick off construction in third-quarter 2023 of an electric vehicle manufacturing plant in Social Circle, Georgia, known as Project Tera, in order to meet the company's production goal of 400,000 EVs annually. The 12-building, 19.8 million-square foot manufacturing facility also will feature a 50-gigawatt-hour lithium-ion battery cell production operation. Click here for the detailed project report.
The project originally was expected to kick off later this year, but was moved out a year, and could be at risk as supply-chain disruptions loom. For more information, see March 21, 2022, article - Rivian Faces Challenges in EV Market.
Vietnamese automaker VinFast plans to produce electric vehicles and batteries at its first U.S. factory, in Moncure, North Carolina, across two phases. The $2 billion EV and battery manufacturing plant would produce 150,000 vehicles (electric cars and buses) per year, with construction kicking off in October and completion expected in July 2024; a $2 billion plant expansion to increase manufacturing capacity would kick off in fourth-quarter 2024. The company plans to phase out production of gasoline-powered models by the end of 2022, shifting to battery-electric production. Subscribers can see detailed reports on the manufacturing plant and expansion projects.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
EV sales (including fully electric and plug-in hybrids) worldwide rose to a record 6.6 million, including 630,000 in the U.S., according to the latest edition of the IEA's annual Global Electric Vehicle Outlook. China accounts for about half of the global total, while 2.3 million EVs were sold in Europe. Global sales in first-quarter 2022 reached 2 million EVs, up 75% year over year.
Click on the image at right for a graph showing EV sales from 2016 through 2021, in the U.S., China, Europe and other countries, based on IEA data.Ongoing policy support has been one of the main growth drivers, according to the agency, as "a growing number of countries have ambitious vehicle electrification targets for the coming decades, and many carmakers have plans to electrify their fleets that go beyond policy targets."
"Five times more electric car models were available globally in 2021 than in 2015, and the number of available models reached 450 by the end of 2021," the agency added.
However, IEA Executive Director Fatih Birol voiced caution.
"Policymakers, industry executives and investors need to be highly vigilant and resourceful, in order to reduce the risks of supply disruptions and ensure sustainable supplies of critical minerals," he said in a press release announcing the report.
The agency points to two main obstacles for the sales growth in the short term: rising prices for minerals critical to EV-battery manufacturing, and supply-chain disruptions caused by the Russia-Ukraine war and COVID-19 lockdowns in some parts of China.
Lithium is a key material in batteries, and the agency notes prices were over seven times higher in May than at the beginning of 2021; prices for cobalt and nickel also jumped. "The cost of battery packs could increase by 15% if these prices stay around current levels, which would reverse several years of declines," the agency noted, adding, "Russia supplies 20% of global battery-grade nickel."
Toyota Motor Corporation (NASDAQ:TM) (Toyota City, Japan) announced earlier this week it will cut global production of all vehicles for June by about 100,000, to roughly 850,000 vehicles (250,000 in Japan and 600,000 units overseas), due to the impact of semiconductor shortages. Meanwhile, due to parts supply shortages caused by the COVID-19 lockdown in Shanghai, China, the company is suspending operations at Japanese plants in May and June, impacting 16 production lines in 10 auto plants out of the 28 lines in 14 plants in the country.
There are short- and long-term obstacles to EV production and adoption, but governments and automakers across the globe are accelerating their efforts to electrify the transportation sector.
China expects "new electric vehicles," which include plug-in electric vehicles, hybrid electric vehicles and fuel-cell electric vehicles, to make up 20% of the country's vehicle market share later this year, well ahead of its 2025 forecast. Meanwhile, the EU Commission recently voted to ban internal combustion engine vehicles for new passenger cars and light commercial vehicles in the EU by 2035.
The Biden administration is targeting 50% electric vehicle sales by 2030. For more information, see August 9, 2021, article - Biden Administration Targets 50% Electric Vehicle Sales by 2030, but Roadblocks Exist.
The U.S. Department of Energy (DOE) announced earlier this month $3 billion in funding from the bipartisan infrastructure law to support the domestic production of EV batteries and components. For more information, see Industrial Info's May 5, 2022, article - $3 Billion Grant Program to Charge Up U.S. Lithium-Ion Battery Production.
For more information on the prospects for EV-battery manufacturing, and various automakers' plans, see Industrial Info's February 7, 2022, article - Automakers Pledge to Electrify Transportation, but Will the Batteries Be There?.
Toyota is at work on a $803 million retooling at its Princeton Truck and SUV Assembly Plant in Indiana. When complete in late 2023, the facility will produce two new brands of electric SUVs. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the detailed project report. Toyota aims for electric vehicles to make up 40% of sales by 2025 and 70% by 2030.
Rivian Automotive Incorporated (NASDAQ:RIVN) (Irvine, California) plans to kick off construction in third-quarter 2023 of an electric vehicle manufacturing plant in Social Circle, Georgia, known as Project Tera, in order to meet the company's production goal of 400,000 EVs annually. The 12-building, 19.8 million-square foot manufacturing facility also will feature a 50-gigawatt-hour lithium-ion battery cell production operation. Click here for the detailed project report.
The project originally was expected to kick off later this year, but was moved out a year, and could be at risk as supply-chain disruptions loom. For more information, see March 21, 2022, article - Rivian Faces Challenges in EV Market.
Vietnamese automaker VinFast plans to produce electric vehicles and batteries at its first U.S. factory, in Moncure, North Carolina, across two phases. The $2 billion EV and battery manufacturing plant would produce 150,000 vehicles (electric cars and buses) per year, with construction kicking off in October and completion expected in July 2024; a $2 billion plant expansion to increase manufacturing capacity would kick off in fourth-quarter 2024. The company plans to phase out production of gasoline-powered models by the end of 2022, shifting to battery-electric production. Subscribers can see detailed reports on the manufacturing plant and expansion projects.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
