Stellantis CEO warns of shortage of batteries for electric vehicles, followed by lack of raw materials

Stellantis CEO Carlos Tavares asked he expects shortages of batteries and raw materials needed to produce electric vehicles in the coming years like the global auto industry transitions to electric cars to meet expectations of increasing consumer demand also government regulations.

Tavares said he expects a shortage of EV batteries in 2024-2025, followed by a lack of raw materials for vehicles, which will delay EV availability and adoption until 2027-2028.

"The speed at which we are trying to solve the global warming problem together for the right reasons is so high that supply chains and production capacities haven't had time to adapt," he told media on Tuesday after the company announced the new $2.5 million. Billion EV batteries in Indiana.

Stellantis, the world's fourth-largest automaker, was formed last year from the merger of Fiat Chrysler and France-based Groupe PSA.

Tavares is using the prospect of shortages to urge politicians worldwide to stop aggressively pushing for electric car targets.

European regulators have been among the most aggressive in enforcing new regulations for electric vehicles, with British regulators announcing plans to ban sales of cars with conventional internal combustion engines by 2030, ahead of a target date of 2040. Last year, the Biden government also announced that half of all vehicles in the United States would be electric by the end of this decade.

"All car companies, at least the best, are in overdrive right now; "The only thing that helps is stability. Stop messing with the rules. Leave the rules and let people do their job right."

Tavares expects batteries to be the first problem area as more electric car manufacturers go online. He then hoped this factory would make up for the shortage of raw materials for vehicles. Such shortfalls are at the heart of Wall Street analysts' assessment of automakers and their ability to sell electric cars.