Automakers are betting on the billions that you buy an electric car

Over the past decade, the automotive industry has been slowly but surely preparing for a fully electric future. As the production of electric vehicles continues to grow, we see that this is an expensive journey that we are going to make. Of the six gigafactories across Europe Announced by Volkswagen last year Ford plans to build two huge battery factories in Tennessee and Kentucky with partner SK Innovation for a total investment of more than $ 11 billion, plans are realistic. Electric cars are definitely coming, so get ready.

A number of recent announcements of EV production show the transition of EV to a higher gear. Volkswagen has taken the next steps in its European EV production plan with a couple of ads. First, the company will spend a billion euros (just under $ 1.1 billion) to build a fully electric ID.4 at its plant in Emden, Germany. Second, VW and Seat are “mobilizing” 10 billion euros ($ 10.6 billion) to upgrade production facilities across Spain. The money represents “the largest industrial investment in the history of Spain,” VW said in a statement.

The transition to EV is happening all over the world. To coincide with President Biden’s trip to South Korea last week, Hyundai announced it would build its first special plant to produce electric cars and batteries in the U.S. in Brian County, Georgia. Hyundai will need to spend about $ 5.5 billion on new capacity, and although more details will be released later, Hyundai has said it will be able to build 300,000 EVs at the new plant if it is fully launched. Hyundai will enter the plant in early 2023, and commercial production will begin in the first half of 2025.

The same shift is happening in some oil-friendly countries. For example, this week Lucid Motors announced more details about its future EV production in Saudi Arabia. The new plant, located in the Economic City of King Abdullah, should start producing EVs by the middle of this decade. Lucid has said the new plant will be able to produce 150,000 cars a year, and the Saudi government has said it will offer Lucid funding and incentives worth up to $ 3.4 billion in total over the next 15 years. Lucid’s main production sitewhere Air EV sedan production began last September is located in Arizona.

What brings us back to potential EV buyers and how these massive investments could affect the new cars that you – and most of us – will be buying in the coming years. In addition to investing in all these new plants, there are associated costs for purchasing raw materials and handling the still unfulfilled supply chain (as well as inflation). And we’re already watching automakers raise prices for some EVs today. This was reported by CNBC This week, some car companies, including Rivian and Tesla, are raising prices for their EVs by about 20 percent to cope with rising costs over the past few months. Lucid raised prices by just over 10 percent. CNBC noted that Cadillac has increased the price of its all-electric Lyriq crossover about 5 percent earlier than it will go on sale this summer. The question will be at what point will electric cars be produced in large enough quantities to make them more affordable? We need to find out in the next few years.

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