Carlos Tavares, the CEO of Stellantis, expressed his opinion to European political leaders that there is not enough lithium to power all electric cars

Following the EU's acceptance of the e-fuel exception allowing the sale of new cars with internal combustion engines beyond 2035, some manufacturers, such as Renault , expressed their disagreement, while others others were reluctantly supportive. However, most manufacturers are waiting to see how things will evolve.

Carlos Tavares , CEO of Stellantis Group , is not among those who wait in silence. He criticized the lack of technological neutrality by putting everything on the battery electric car, which leads to a loss of creativity in the search for energy sources. He also expressed his concern about the legal framework which could harm healthy competition, in addition to pointing out the high cost of electric cars.

Recently, he explained that affordable electric cars are not currently available due to the scarcity, high cost and volatility of raw materials, especially lithium .

He pointed out that we need lithium to replace the 1.3 billion internal combustion engine cars on the planet, but we are not producing enough to meet the demand. It also raises geopolitical concerns related to the concentration of lithium mining.

In reality, hundreds of rare earth mines , not just lithium, would be missing to meet demand. Although lithium is found in abundance on Earth, its extraction can be expensive and is mostly controlled by China, which may limit its use. This phenomenon is also observable, as we have seen, with the oil discovered off the Canary Islands.

Is carbon-neutral mobility reserved for a restricted elite?

At the Freedom of Mobility Forum he created in conjunction with his decision to leave the European Automobile Manufacturers Association (ACEA) , Stellantis took the stage on Wednesday to discuss the cost of mobility access.

This initiative allows the group to free itself from a common line with ACEA and to make its own decisions in terms of public affairs and pressure groups. In a world aiming for carbon neutrality , the question was whether freedom of mobility would be reserved for a privileged few.

Electric cars and those that will only run on e-fuel are currently considered out of reach for most customers, with prices well over 35,000 euros.

To understand the importance of offering affordable cars, just consider that in Spain, in 2022, 73% of new cars sold cost less than 25,000 euros, according to Treasury data. It's a concern frequently voiced by Tavares, who insists the auto industry must absorb the higher manufacturing costs of an electric car, which are 40% higher than those of a combustion engine car. internally, rather than passing them on to the customer by increasing the selling price.

Many brands saw an opportunity to offer increasingly expensive models, with higher profit margins, such as Peugeot, Mercedes and CUPRA, which accounts for more than 40% of SEAT SA sales.

However, the market for the most expensive cars is much smaller than the market for cars in general, and not all brands will be able to survive if they continue to favor premium.