Morgan Stanley predicts that the electric vehicle market will be worth $1.5 trillion by 2040. That is the fatty cake that has caused a series of big brands and manufacturers to transform themselves to adapt to the change. As part of its $34.7 billion electrification plan, Stellantis - born from a merger between PSA and Fiat Chrysler earlier this year - said it has signed a preliminary agreement with battery maker LG Energy Solution to produce batteries and modules for electric vehicles.
Daimler AG, a major German auto maker, has also recently announced it will hold a 33% stake in car battery maker Automotive Cells Company (ACC), founded in 2020 by Stellantis and Totalenergies in 2020. According to Reuters, automakers are racing to ensure battery supply as they switch to electric vehicles, with dozens of new battery plants planned across Europe and the US.
Ford Motor Co's electric vehicle development plan in Europe received approval earlier this week, as the company said it would invest $316 million to refurbish an engine plant in northern England to produce electric motor units instead of internal combustion engines. The US's No. 2 automaker said its European car will be fully electric by 2030.
The shift of the electricity market has prompted a large number of startups to hope to become Tesla Inc - the company that owns the world's largest electric vehicle factory. Foxconn of Taiwan (China) is a typical example. This is a corporation specializing in providing components for Apple Inc and other technology companies.
But on October 18, Foxconn introduced its first three electric vehicles, an SUV, a sedan and a bus. It is produced by Foxtron, a joint venture between Foxconn and Taiwanese carmaker Yulon Motor Co Ltd. Foxconn first mentioned its EV ambition less than two years ago and they have made rapid progress. This year, the company also announced car manufacturing deals with US startup Fisker Inc and Thai energy giant PTT Pcl.
The growth rate of electric vehicles is also a reason why Volkswagen AG invited Tesla CEO Elon Musk to talk to 200 German car company executives last weekend, through an online video call.
Elon Musk has accepted an invitation from Volkswagen AG CEO Herbet Diess, who has made no secret of his ambition to accelerate the production of electric vehicles, creating the biggest transformation in the company's history.
