Renault recently announced it is creating two separate subsidiaries to manufacture its electric vehicle (EV) and traditional combustion vehicle businesses so it can finance the investment needed to ramp up its development of electric cars.The manufacturer is facing the same challenges as the vast majority of industry actors (not just other car manufacturers but also equipment suppliers and dealers) : the recent drop in sales, market volatility, gloomy economic prospects and tightened environmental standards. Against this background, low-carbon mobility (electric, hybrid and hydrogen) is a pivotal area of development for the decades ahead.The battle for leadership and innovation in metals and technologies is raging, and the global stakeholders have embarked on a fierce competition. Access to metals and supply chains will, of course, be vital as will investment capacity and access to sought-after skills.
Low-carbon mobility now a major global challenge
Vehicle electrification has turned into a global competition. Players across the board – advanced and emerging economies, mining countries and so forth – are gearing up to make sure they do not miss the boat that is low-carbon mobility. China has already made its mark as a key actor in battery production: it boasts 60% of the world’s lithium refining capacity, 77% of global battery cell production and 60% of global battery component manufacturing.Decarbonisation is also high on the political agenda of OECD countries. In addition to environmental concerns, economic challenges (job creation and re-industrialisation) and industrial sovereignty are important factors. Subsidising car purchases is one of the tools regularly employed by governments to support the business and drive up consumption. The Chinese and US authorities recently introduced subsidies for households to purchase EVs. These two countries can rely on their…
