![Tesla Co-founder Predicts Epic EV Sales Surge, but Will Production Keep Pace? Tesla Co-founder Predicts Epic EV Sales Surge, but Will Production Keep Pace?](https://timesnewsexpress.com/wp-content/uploads/2023/07/Battery-packs-are-assembled-inside-Audis-e-tron-factory-in-Brussels.png)
Hey there, car enthusiasts! JB Straubel, the brilliant mind behind Tesla and the CEO of Redwood Materials, has some news that’ll make you say “whoa” and “uh-oh” at the same time. It’s like a rollercoaster ride with ups and downs, so buckle up!
According to Straubel, electric vehicle (EV) demand is soaring high like a rocket heading to the moon. People are falling head over heels for EVs, and gas-guzzling cars are feeling a bit left out, bless their fossil fuel hearts. The auto industry, however, is playing the classic game of “catch-me-if-you-can,” and it seems they’re losing against the EV craze.
“It’s like a surprise party for the auto industry,” Straubel said during a chat on TechCheck with CNBC. “EV sales are skyrocketing by nearly 100% in different parts of the world, while internal combustion engine sales are taking a nosedive. Looks like someone didn’t get the memo!”
Straubel isn’t just predicting a minor shift; he’s got some wild ideas about the future. The estimates claiming EVs would represent 12.7% of all U.S. auto sales by 2025? Pfft! Too low, according to him. He’s got his eyes on the crystal ball and believes the percentage could climb even higher by mid-decade, like a fearless climber reaching for new heights.
Redwood Materials, Straubel’s baby, is putting its money where its mouth is. They’re dropping a jaw-dropping $1 billion to build a spanking-new plant in McCarran, Nev. It’s like constructing a high-tech fortress to fuel the EV revolution! This fancy facility will churn out anode copper foil, a critical component used by Panasonic to create battery cells. You know, the kind of cells that power those zippy Teslas zooming on the roads.
Enough with the serious stuff; let’s talk fun facts! The plant is going to hire over 500 people, which is like hosting a massive EV party with a swarm of enthusiastic guests. And guess what? Redwood Materials plans to supply enough anode copper foil to power a million EVs every year. Talk about electrifying numbers!
Bold prediction alert: Redwood Materials will be the first to supply anode copper foil in the U.S., breaking the tradition of importing most of it from Asia, especially China and South Korea. It’s like saying, “Hey, America, we got this!” with a dash of national pride.
Now, let’s talk batteries—those magical powerhouses that make EVs go vroom. AlixPartners, the car industry’s resident brainiacs, believe the global capacity for lithium-ion battery manufacturing will go from 713 gigawatt hours in 2021 to a mind-blowing 2,273 gigawatt hours by 2025. That’s like going from a tiny spark to a dazzling fireworks display!
With so much battery juice on the way, experts think the prices of battery cells and packs will do the limbo and drop low, low, low. It’s like a sale at your favorite store, but this time it’s on EV batteries! ESource, the price-tracking champs, predict the cost per kilowatt hour of an automotive battery cell will go from $147 in 2022 to a friendly $98 by 2025. Who doesn’t love discounts, right?
But hey, here’s a reality check. For this battery bonanza to happen, the supply chain needs to step up its game and grow like a green, leafy plant. Without enough raw materials, we might face a “battery-geddon” (see what I did there?). Stephen Brown from Fitch Ratings is waving the caution flag, reminding us that shortages could play the spoilsport.
Straubel isn’t just a bearer of good news; he’s also the voice of reason. He warns us about a potential “semiconductor type of shortages” that might put the brakes on EV growth. Imagine a race car running out of fuel halfway through the race—that’s the kind of hiccup we want to avoid!
So, while Redwood Materials hustles to build facilities like superheroes, we can only hope the auto industry keeps up with the EV craze. It’s like witnessing an epic battle between gasoline-powered and battery-powered vehicles, and I’m placing my bets on the EVs, hands down! Keep your eyes peeled, folks; it’s going to be one electrifying ride!