The Electric Car Industry Has a Supply Problem

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The electric car industry doesn't have a demand problem.

With 200,000 reservation holders tapping toes in line, dreaming of dusting gasoline trucks, we may take the Ford F-150 Lightning as an example, illustrating just how badly many Americans wanted an electric pickup. So many that even Ford was caught off guard, and is racing to double Detroit production to 150,000 annual units by next year. Darren Palmer, Ford’s vice-president for electric vehicle programs, told me Ford also aims to roughly triple Mustang Mach-E production, to 150,000 yearly.

Ford alone expects to add 60 fresh gigawatt-hours in North America by 2025 — equaling today’s total U.S. output — and 140 by 2030, including joint-ops facilities with South Korea’s SK Innovation in Tennessee and Kentucky. GM is readying its first Ultium-branded battery plant with South Korea’s LG Energy Solution in Ohio, with more to come in Tennessee and two other locations. Stellantis, Volkswagen and Toyota are laying groundwork for their own energizing battery operations.

Until the entire EV ecosystem can expand, automakers — including giants in Europe and Asia with their own outsize electric ambitions — must fight for customers with one hand tied behind their back. Hyundai Motor can’t build its knockout tag-team, the high-design Hyundai Ioniq 5, Kia EV6 and now Genesis GV60, fast enough. The Ioniq 5 is the first car in Hyundai history to go on sale in Europe first, rather than its home country, to help satisfy Euro regulations and red-hot demand.

 

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