President Joe Biden visited Detroit to see Factory Zero, the heart of GM’s transition to all-electric vehicles, after approving a $1.2 trillion infrastructure package that includes significant funding for a countrywide electric vehicle charging network.
The $2 billion upgrades of the assembly factory will produce a wide variety of battery-electric cars, commencing with the GMC Hummer EV in 2022. Overall, GM aims to release a minimum of 30 battery-electric cars by the middle of the decade and has outlined a strategy to transition its retail product line completely to battery power by 2035. It is not, however, the only one.
According to a new estimate, the global automotive industry is going to invest a minimum of $500 billion in electrification by the end of the decade. The change is happening at a breakneck speed. Industry analysts predict that by the end of next year, there will be more than 50 long-range battery-electric cars available for United States motorists, up from just over a dozen at the end of the 2021 model year.
Nevertheless, at the Los Angeles Auto Show, all of the new cars on display this year are battery-powered, including Subaru’s Solterra, Hyundai, and Kia concept vehicles, and Toyota’s bZ4X, the world’s first long-range battery-electric vehicle.
According to Sam Abuelsamid, principal auto analyst at Guidehouse Insight, the following year might be “important” as the industry ramps up spending on electric vehicles and pushes new models to market. Battery-electric vehicles accounted for less than 1% of the new vehicle market in the United States at the end of last year, and automakers lost money on every all-electric car they produced. However, throughout the very first part of this year, demand more than doubled, and it has kept growing.
Meanwhile, Tesla is profitable, and GM Chief Executive Officer Mary Barra is so optimistic about her company’s future that she anticipates margins to exceed 10% by the close of the decade.
According to industry experts, the introduction of new products is important. While initial battery-electric cars were primarily concentrated in the compact sedan and hatchback segments, newer models, such as the Ford Mustang Mach-E as well as General Motors’ new Hummer, is more in line with industry trends. As per projections from Environmental Protection Agency, some vehicles, notably the Tesla Model S and the upcoming Lucid Air, can go 400 to 520 miles on a single charge.
However, charging is a significant issue that Biden addressed in his infrastructure proposal. Over $280 billion in transportation-related projects are included in the plan. This includes $15 billion earmarked expressly for electrification, including the establishment of a statewide network of electric car charging stations. Several states, notably California, New York, and Michigan, are launching their initiatives. This year, several of the major private charging companies, including ChargePoint, went public, generating billions of dollars.