Stellantis CEO: There may not be enough raw materials to electrify globe

The CEO of the maker of Jeep SUVs, Ram pickup trucks and other vehicles says he’s not sure there will be enough raw materials to replace the existing fleet of fossil fuel-powered vehicles with all-electric vehicles.

The comments from Stellantis NV’s Carlos Tavares came Wednesday during the Freedom of Mobility Forum, a platform the automaker created alongside its decision to leave the European Automobile Manufacturers Association and to change its approach to public affairs and lobbying. The hope is that the debate from diverse views around the world can help to inform and influence public opinion to which lawmakers ultimately are subject. And based on the engagement of the inaugural event, stakeholders involved will determine the best ways to disseminate the facts, challenges and solutions discussed.

Stellantis CEO Carlos Tavares suggested during the Freedom of Mobility Forum there many not be enough raw materials to replace internal combustion engine vehicles with all-electric vehicles.

The wide-ranging, two-hour conversation among six panelists was moderated by Celia Edwards, a partner at consulting firm Wavestone. It addressed the auto industry, public transportation, bikes and municipal planning and sought to answer the question: In a decarbonized world, will freedom of mobility be affordable to a happy few only? It’s a frequent concern expressed by Tavares, who has emphasized the need for the auto industry to absorb the 40% higher costs to build an electric vehicle than an internal combustion engine vehicle instead of passing those expenses onto car buyers.

“The affordability is not there, because the raw materials are scarce and very expensive, and I would add very volatile,” Tavares said. “We know that we need lithium. We know that we are not producing as much as we need. We have right now 1.3 billion cars (that are) internal combustion engine powered on the planet. We need to replace that with clean mobility. That will need a lot of lithium. Not only the lithium may not be enough, but the concentration of the mining of lithium may create other geopolitical issues.”

Those issues include governments instituting requirements to source materials domestically or with certain trade partners, which increases their costs, as well, he said.

Tavares emphasized the research in this area remains early. Automakers are looking at materials to make vehicles lighter, exploring different battery chemistries that use less scarce resources and calling for a denser EV charging infrastructure that would reduce range anxiety and make smaller vehicles more practical.

Still, Tavares expressed confidence that Stellantis will be able to meet its goals set in its 2030 strategy and that holdups in the European Union to ban the sale of fossil fuel-powered vehicles by 2035 won’t affect its trajectory. Stellantis plans for 100% of its sales in Europe and 50% in the United States to be all-electric by the end of the decade.