StellantisCarlos Tavares CEO stated that there will be shortages of batteries and other raw materials for electric vehicles over the next decade as the automotive industry moves to EVs to address the expected rise in consumer demand.

Tavares stated that he anticipates an EV battery shortage by 2024-2025. This will be followed by a shortage in raw materials, which will reduce the availability of EVs and slow their adoption by 2027-2028.

He said Tuesday that “the speed with which we’re trying to move all together to the right purpose, which is fixing global warming” after the company had announced a new product. $2.5 billion EV battery plantIndiana

Stellantis is the fourth largest carmaker in the world, and was created last year by the merger between Fiat Chrysler, France-based Groupe PSA, and Fiat Chrysler.

Tavares used the possibility of shortages to encourage policymakers worldwide to stop moving aggressively towards EV targets.

European regulators were among the most proactive in implementing new EV laws. In the United Kingdom, they announced plans for banning the sale of traditional internal combustion engines. They are also moving faster than their previous goal of 2040. Biden’s administration also set the goal that half of U.S. cars will be electric by the year 2020.  

Tavares explained that all the automobile companies are at full speed, even the most elite, and they are in full execution mode. They’re going as fast, as they can, now. The only thing that can deliver results is stability. Don’t play by the rules. Allow people to do their jobs properly and leave the rules alone.

Tavares believes there will be a bottleneck first as more EV production facilities come online. Then, he expects that these facilities will create a lack of raw materials to make the cars. Wall Street analysts focus on these shortages when rating automakers or predicting how they might sell EVs.

Although this isn’t Tavares’ first warning of a shortage in such an area, it is the most thorough.

Tavares explained that “the point is, when it’s too fast and has a large magnitude, there are not enough feasibility analyses, then we might be bumping into this type of stuff.” “You will see that electrification, which is an ambitious path and has been given a timeline by government agencies, is moving on to the supply side.

Global automakers have established sales goals to help certain brands transition. to exclusively offering EVsBy the end of this decade, or sooner.

Stellantis has invested $35 billion in EVs, and plans to sell 5 million electric cars annually by 2030. In line with government targets, this would also include passenger vehicle sales in Europe as well as 50% of North American light-duty and passenger truck sales.