Chip Shortages Drive Vehicle Prices Higher

Vehicle Makers Step Up Their Battery Production Efforts

Toyota and Stellantis to Open US Battery Plants

From Toyota (TM) to Stellantis (STLA), vehicle makers are doubling down on their electric vehicle production efforts. As demand for EVs surges and countries strive for zero emissions, automakers are putting the pedal to the metal, pouring tens of billions of dollars into opening new EV factories and producing batteries needed for EVs.

Toyota and Stellantis, the maker of Jeep, took big steps in that direction yesterday. Each announced separately that they are building US-based battery factories. Toyota plans to spend $3.4 billion through 2030 for US battery production. Meanwhile, Stellantis said it is teaming up with LG Energy Solution to build a new battery plant in the US.

Different Strategies

Vehicle makers are taking different approaches to bulking up their battery production capabilities. Toyota is building its EV batteries in-house, a path Ford (F) said it will eventually go down. In contrast, Stellantis and GM (GM) are teaming up with outside battery makers.

Either way, the increased focus on battery production comes as the vehicle makers set lofty goals for future EV sales. Stellantis, for example, expects 40% of its US sales to come from EVs by 2030. Ford expects its entire European lineup to be EVs by 2030.

Foxconn Shares EV Prototypes

It is not only traditional vehicle makers chasing the EV market. A number of startups hoping to be the next Tesla (TSLA) are also making moves in the industry. Meanwhile, large companies specializing in other industries are also working to get a piece of the EV pie. Foxconn, the world’s biggest contract electronics manufacturer, is a great example. Yesterday it rolled out three electric-vehicle prototypes which it designed with a Taiwanese carmaker. Foxconn wants to build vehicles which can be sold under other brands.

As many kinds of companies try to get a piece of the EV market, it will be interesting to see which of their strategies pay off down the road.

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ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

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