As California has moved ahead with ambitious clean-air regulations, the state has had to push the auto industry to do the same. California is leading the way in the push toelectrify the car fleet.
Detroit's Big 3 and their international rivals were setting increasingly aggressive targets for exclusively electric product lines even before the state banned sales of internal-combustion vehicles.
Mass production of affordable electric cars will not be easy because of the supply chains and engineering developed for internal-combustion vehicles.
The automotive industry is rushing to close deals with mining companies and other suppliers that can meet the rising demand for battery materials. Smaller companies are teaming up with larger ones to speed up the build out of a charging network. The electric vehicle transition is not held back by the convention of making gasoline-powered products, so they are breaking up their own corporate structures.
Jessica Caldwell, executive director of insights atEdmunds, said that moving everything to E.V.s in California doesn't seem crazy or impossible at the moment. Each automaker will face challenges to achieve their targets, and a few may struggle a bit.
The California Air Resources Board adopted a mandate that will make electric cars more popular in the future. The climate and energy package signed by President Biden this month expands tax credits available to electric-vehicle buyers, but includes made-in-America requirements for E.V. components that will be difficult for many manufacturers to achieve.
Daniel Sperling is a member of the California board. He said it was important to reduce carbon emissions and stem global warming.
He said that this is the most significant action that CARB has taken. It's good for the economy and the environment.
General GM said last year that it would only sell electric cars in the 20th century. During an online discussion this week organized by The New York Times, the head of global public policy at G.M. said that California's mandatemarries well with the company's business plans.
The California rule requires that at least 35 percent of new passenger vehicles be carbon-free by the year 2020.
More than one million electric vehicles have been sold in California. The California New Car Dealers Association reported that 15 percent of new cars sold there in the first half of this year were electric.
The state's standards aren't just important because of its large population. California is allowed by law to set tougher environmental standards for cars than the federal government does. A third of the US auto market is usually followed by more than a dozen states. They want to follow a single set of rules.
Big automakers have set their own timelines for a complete shift to E.V.s., anticipating new regulations and determined to both create and meet consumer demand. Ford wants to make two million electric vehicles a year by the end of the century. Volkswagen plans to stop selling gasoline vehicles in Europe in 2033 and will only sell electric models in the beginning of the 20th century.
The auto industry is spending tens of billions of dollars to make dozens of electric models and build plants to assemble them. The battery plant in Ohio is one of three being built by G.M. Ford is selling an electric version of its F-150 pickup, an electric mustang sport utility vehicle, and an electric delivery van, and is the second largest seller of E.Vs in the United States.
Ford split its automotive operations into two divisions, one focused on electric vehicles and rapid growth and the other on gasoline models that aim to reduce costs and maximize profit as sales slow and eventually fall. The company said this week that it was eliminating 3000 white-collar jobs to address its cost structure.
The electric S.U.V. was produced at the existing plant in Tennessee. The company is trying to make sure they have the right supplies. The Canadian government has agreements with Volkswagen and Mercedes-Benz to get access to important metals and minerals. Most of the mines are in the development stage.
Volkswagen was already investing in local supplies of raw materials in its various markets, but the U.S. government policy has changed that.
Consumers have shown an appetite for electric models, which is one reason why autos are embracing the transition. In the first half of the year, more than 370,000 fully electric vehicles were sold in the US, up 76 percent from the year before.
E.V. sales will surpass sales of gasoline-powered cars and trucks in the near future, according to manufacturers. There are more than 200,000 reservations for the F-150 pickup. G.M. said it had 150,000 for an electric Chevrolet Silverado, a truck that won't be made until next year.
Electric vehicles can be made affordable. Compared to gasoline models, the models on the market tend to be more expensive. Before any options are added, the Model Y compact list is more than $50,000. The Mach-E S.U.V. is more expensive than the Escape.
As production increases, automakers are trying to reduce costs. The modular battery pack that G.M. is assembling in Ohio can be used for almost any electric vehicle. The company is counting on this design to create economies of scale that will allow it to price E.Vs in a range that many more consumers can afford.
In an interview this year, the chief executive of G.M. said that the transition to E.V.s would require entry models.
The cost of critical metals and other minerals used in batteries remains a concern. Prices of materials could go up if E.V. production goes up.
Jim Farley, Ford's chief executive, told analysts in a conference call that only half of the raw materials needed to meet the auto industry's announced E.V. targets were actually available.
G.M. and Ford have agreements with mining companies to purchase battery materials. The agreement to buy battery packs from a Chinese company was reached after Ford decided to use two types of batteries.
According to G.M., it has secured access to all the raw materials it needs to make one million E.V.s in North America, and Ford says it has deals to provide 70% of the batteries it will need to make two million E.V.s a year.
It's not clear how those companies and others will get enough materials for an electric lineup.
The availability of charging stations is one of the concerns. vast parts of rural areas have no stations at all. Home charging stations can help reduce the need for commercial charging stations, but they can be expensive.
As it sells more cars, it will need to build more charging stations for them. G.M., Ford and other manufacturers are working with companies to build charging networks. California's network is the densest in the US, but electric vehicle owners still complain about long waits to charge.
Jack and Ivan were involved in the report. Sheelagh was a researcher.
All Rights Reserved © 2024
