During our AutoTech Effect Episode with Bloomberg Automotive Research, we spoke with Kevin Tynan, Global Director of Automotive Research, to discuss insights that shed light on the current state of electric vehicles (EVs) and recent developments within the supply chain.
Bloomberg Intelligence is a division within Bloomberg that focuses on the supply chain trends within the automotive industry. Tynan creates content for Bloomberg clients on where the industry is going, providing information on who the leaders and laggards are in terms of specific technologies, from suppliers to manufacturers, out to the retail channel.
Tynan says they spend a great deal of time researching electrification. He believes the legacy automakers will be the gamechangers in the EV market, having hundreds of years of engineering, design, and distribution experience. In the current automotive climate, there is a lack of profitability from EV, which is why it hasn’t been heavily adopted in the United States. When there is money to be made, Tynan believes it will be the domestic automakers and not the consumers that could take us from 2% to 10% EV with a manufacturer push.
Tynan expresses concerns about the preparedness of the supply chain and addresses the statements announced by automakers, with promises of a certain percentage of EVs in the next few years. Once EV adoption rises, suppliers would have to provide raw materials on a large scale, which could pose an issue. Conversations with lithium companies reveals contracts haven’t been signed, with 3-to-5-year lead times, alluding to the fact that the supply chain has yet to be established.
Tynan believes there are still many questions to explore, such as how the batteries will be disposed of, if they have a second life as stationary storage in homes, and what the cost of energy will be once everyone is using it? Companies need to start asking the long-term questions because there are still many unknowns on how EVs will play out for automakers.
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