Stellantis Chief Executive Officer Carlos Tavares said at a conference on Tuesday that the auto industry would likely continue to be impacted by the ongoing supply chain disruptions for a few more years as prices continue to rise and the need for electric vehicle batteries increase. 

Even though EV battery plants are being built in Europe and the United States, Tavares predicts the auto industry will suffer from a shortage of EV batteries until 2025 or 2026. He stated that one could “easily anticipate” that “there will be a significant dependence of the Western world vis-à-vis Asia.”

Tavares also touched on raw materials, noting that electric vehicles are heavier than internal combustion engine vehicles and therefore require more raw materials, which are in short supply. This could potentially lead to a “scarcity of raw materials,” which could cause “geopolitical risks.”

Tavares also cautioned about the prices of EVs and noted that high costs might lead to consumers’ inability to afford them. This, according to Tavares, would pose the risks of job losses and negative climate impacts. 

He also advocated that Stellantis wants to keep its employees, stating, “It’s important to tell them that we want to bring them along with us because we believe in their learning capabilities.” The automaker is looking for training opportunities and currently has plans to use Amazon’s software to conduct EV training for 1,000 engineers annually.

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