The latest sign the rapid transition to a green economy could soon hit a snag is a warning from the world's fourth-largest carmaker about an approaching electric vehicle (EV) battery shortage.
Stellantis CEO Carlos Tavares expects a shortage of EV batteries by 2024-25, according to CNBC. He then said the adoption of EVs by 2027-28 will slow due to a lack of raw materials for vehicles.
"The speed at which we are trying to move all together for the right reason, which is fixing the global warming issue, is so high that the supply chain and the production capacities have no time to adjust," Tavares said.
President Biden's ambitious target of 50% EV sale shares in the U.S. by 2030 could hit a brick wall unless domestic supply chains are strengthened and raw materials for battery-making are adequately sourced.
Tavares said new EV regulations to phase out traditional internal combustion are too aggressive and urged lawmakers to stop moving targets for EVs forward.
He expects a battery shortage will first emerge and then a lack of raw materials for the vehicles.
"You'll see that the electrification path, which is a very ambitious one, in a time window that has been set by the administrations is going to bump on the supply side," the CEO added, who runs the world's fourth-largest carmaker, with brands such as Chrysler, Dodge, Ram, Jeep, Abarth, Alfa Romeo, Lancia, Maserati, and others.
A shortage of batteries and raw materials will drive the spread of EV-combustion average car prices even wider. The average cost of an EV is around $60k, versus $46k for all other vehicles. That's a difference of $14k. The spread will continue to widen as battery costs increase, thus making EVs unaffordable for most people.
And it's not just EVs that could soon run into trouble. Greenify the nation's power grid could result in power shortfalls across the western half of the US because grid operators have removed too much power capacity through retiring fossil fuel power plants and have yet to bring enough solar and wind to satisfy the increasing demand. This may trigger a summer of power blackouts.
What's deeply depressing is that elected and unelected officials forcing this green transition have taken no accountability for their actions upon mishaps. Thank the billionaires at Davos for this mess, who want the masses to own nothing, drive EVs, and eat bugs.