DETROIT — Global automakers and tech companies are stepping up the pace when it comes to building factories and prepare for what many believe will be a fast-moving transition from internal combustion engines to electric vehicles, AP reported.
On Monday, Toyota, Stellantis, Foxconn, Ford and Volvo all made announcements about electric vehicle component or assembly plants, or plans to raise capital to fund the transition. The moves come on top of previous plans from Ford and General Motors to build five US battery factories in anticipation of the shift to electric power.
The moves are ahead of demand at the moment, but forecasters predict that the share of electric vehicles will rise dramatically as more battery-electric models are rolled out as governments increase requirements for zero-emissions vehicles to fight climate change.
At present, only about 4.8 per cent of the roughly 80 million new vehicles sold globally run solely on electricity, according to LMC Automotive.
But the consulting firm Alix Partners predicts that will rise to 11 per cent in 2025 and 24 per cent in 2030. If plug-in gas-electric hybrids, which can travel short distances solely on electricity, are included, that figure rises to 28 per cent in 10 years.
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