US automakers this week announced more than $1.1bn in investments into electric vehicle (EV) production plants, expanding on the recent trend.
Ford and General Motors (GM) this week separately announced plans to spend $850mn and $300mn, respectively, on plant expansions to produce EVs in Michigan. The investments add on a trend of building infrastructure and manufacturing capacity around the electrification of the industry.
Ford plans to spend $850mn through 2023 at its second EV North American plant, adding a second shift and 900 jobs at its Flat Rock, Michigan, facility.
The company expects the vehicles produced at Flat Rock will follow the planned performance electric sports utility vehicle (SUV) set to come from its Cuautitlan, Mexico, plant by 2020. The investment will also fund building a new "next-generation" Mustang.
Ford also laid out plans to build a manufacturing center in southeast Michigan to upgrade commercial vehicles with autonomous vehicle capabilities in order to provide services for moving good and people.
In addition, GM will add 400 jobs at its Orion, Michigan, plant to build a new EV in addition to its current Chevrolet Bolt.
The company reversed plans to build the EV outside of the US. Since the Orion plant handles Bolt production, the new vehicle will be based off an advanced version of the same architecture, and the company sought to retain the support of the rules of origin provisions in the proposed new US, Mexico and Canada trade agreement.
Electric vehicles are on track to account for as little as 2pc of total US vehicle sales, based on EV manufacturer Tesla's sales alone. The company expected in late January to deliver 360,000-400,000 vehicles in 2019. Seasonally adjusted sales of light trucks and automobiles fell to an annualized rate of 16.5mn vehicles in February, according to the US Bureau of Economic Analysis.
Most EV raw material prices have declined recently. Argus assessed 19 March lithium carbonate (Li 99.5pc) down by 12pc to $11.50-13.50/kg compared to the start of the year. Lithium hydroxide (Li 56.5pc) prices declined by 8pc to $14.00-16.0/kg. US cobalt (Co 99.8pc) prices slid by 47pc to $13.95-15.00/lb.
One of the only prices to rise, LME nickel three-month official prices rose by 24pc to $13,270-13,275/mt on 21 March from the end of December.
