The Challenges of Building a Localized EV Supply Chain

🔌Joe Manchin's influence has played a significant role in shaping Washington's position on electric vehicles.

🌍China has methodically established a strong position in controlling the raw materials required for electric vehicle supply chains.

📉The collapse in prices of raw materials like lithium has complicated the industry's efforts to build localized supply chains.

🔋General Motors is well positioned with its localized supply chain for batteries through partnerships with Korean battery suppliers.

🚗The challenge lies in convincing Americans, who prefer larger vehicles, to transition to electric vehicles.

What are the difficulties faced in sourcing and refining raw materials for electric vehicles?

—The difficulties lie in sourcing materials like nickel, lithium, and graphite, particularly due to China's dominant position in the market. Additionally, the refining process and the cost differences add to the challenges.

How are companies working to meet the regulations on battery component assembly and raw material sourcing?

—Companies are forming partnerships and localized production to meet the regulations. General Motors, for example, has a joint venture with a Korean battery supplier, while Ford and Stellantis are also setting up battery plants in North America.

What is the impact of the collapse in raw material prices on the industry?

—The collapse in prices, particularly of lithium, has had unintended consequences. It affects the value of used electric vehicles and puts pressure on projects that aim to build localized supply chains in North America.

Which automakers are currently meeting the sourcing hurdles for tax credits?

—Tesla and General Motors are among the automakers currently meeting the sourcing hurdles for tax credits. Tesla qualifies for tax credits for seven out of twelve models sold in the US, while General Motors has a localized supply chain for batteries.

What is the challenge in convincing Americans to transition to electric vehicles?

—The challenge lies in convincing Americans, who have a preference for larger vehicles, to transition to electric vehicles. This preference adds complications to the overall adoption of EVs in the US market.

00:00Joe Manchin's influence shaped Washington's position on electric vehicles, creating challenges for the industry.

01:12China has established a dominant position in controlling the raw materials required for electric vehicle supply chains.

03:03The collapse in prices of raw materials like lithium has complicated the industry's efforts to build localized supply chains in North America.

03:42General Motors is well positioned with its localized supply chain for batteries through partnerships with Korean battery suppliers.

06:20The challenge lies in convincing Americans to transition to electric vehicles, considering their preference for larger vehicles.