Automakers Investing in an Electric Future
As the global car industry commences on its journey to moving from internal combustion engines to batteries, automakers across the globe are investing in an electric future. Two of the biggest global automakers, Toyota and Ford, are the latest car producers to invest billions into automotive battery development and electric vehicle production.
U.S. carmaker Ford announced this week it will invest £230m in a transmission factory in the UK to upgrade it to make parts for electric vehicles, whilst Toyota Motor Corp’s North American unit has announced an investment of about $3.4 billion on U.S automotive battery development and production.
These funds are part of the $13.5 billion Toyota said in September that they planned to spend globally by 2030 to develop batteries and its battery supply system.
Toyota also said it plans to establish a new company and build a new U.S. automotive battery plant together with Toyota Tsusho (8015.T), the automaker's metals trading arm and a unit of the Toyota Group. The aim is to start production in 2025 and is expected to create 1,750 new U.S. jobs, and it includes a planned $1.29 billion Toyota investment through 2031.
Toyota North America CEO Ted Ogawa said in a statement the investment "will help usher in more affordable electrified vehicles for U.S. consumers."
Meanwhile, Ford’s investment will help secure 500 jobs at the plant in Knowsley, in the UK, which currently makes transmission systems for petrol and diesel vehicles. Ford will receive UK government support worth about £30m to upgrade to EV production, according to a source with knowledge of negotiations.
Ford envisages that by 2024 the factory will produce 250,000 electric drive units, components that include electric motors and power electronics, every year.
Across the globe, automakers are investing billions in order to speed up battery and EV production as they are faced with more and more environmental regulation deadlines.
In February, Ford announced all of its cars that are sold in Europe will be electric by 2030, which will meet the UK government’s plan to end the sale of petrol and diesel cars by 2030, and hybrids by 2035.
Stuart Rowley, president of Ford of Europe, said “At Ford we’re all in. In the industry we’ve made the decision, we’re going electric. But we need to significantly ramp up the infrastructure at home, in the workplace.”
Kwasi Kwarteng, the business secretary, said the investment was “a huge vote of confidence in Britain’s economic future and our plans to ramp up electric vehicle production”.
In August, U.S. President Joe Biden signed an executive order to make half of all new vehicles sold in 2030 zero-emissions vehicles.
To help meet these regulations, Toyota is also lobbying a campaign to convince U.S. lawmakers not to include an additional $4,500 tax incentive for union-made electric vehicles.
Toyota also said last month it "unreservedly signed up to meet the challenge of making half of the vehicles we sell electric" by 2030.
Here at TyTek Industries, we recognise the importance of renewable energy. We provide innovative, sustainable solutions for customers who approach us because they recognise the importance of environmentally friendly products. To find out how TyTek Industries can work together with your business, contact our experts today!
Source: Reuters and The Guardian