While providing hope that the current global supply shortage of semiconductors for the auto industry will stabilize, according to General Motors Co.’s president the rate of stabilization of supply will be at levels much lower than what the auto industry desires as the industry tries to rebuild and restock its inventories of vehicles.
There will be stabilization in the supply of chips for vehicles before the global auto industry starts to get the supply of chips at the volume and speed that is needed by the global auto industry, said GM president Mark Reuss, who is also a representative of the Detroit Regional Chamber.
Almost all of the major auto makers of the world including GM have been forced to curb production of vehicles since last year at their plants globally because of the shortage of chips for cars and other vehicles. Executives of some companies and other analysts of the global chip industry have warned that the supply shortage could continue well into 2023.
With respect to supply of semiconductor chips, GM anticipates that 2022 will be a more stable year for auto makers, Paul Jacobson, Chief Financial Officer at GM, stated last week. He however also warned that the wholesale deliveries of vehicles of the company in the third quarter could drop by as much as 200,000 vehicles due to the chip shortage.
Recycling of materials and using them for making electric vehicle (EV) batteries will be the dominant trend for the global auto industry in the near future, Reuss also stated.
He said: “There is a lot of material within a battery cell that could be reused.” “We are spending time on this.”
GM, as well as a number of other auto companies are now focusing current investments on that future technology of batteries for EVs. For example in July, GM said that it would be making investments in a lithium project – a critical element for EV batteries, in the United States. That investment would make GM the largest investor in lithium in the US by 2024 and will be the first US automaker that will create its own source of lithium for the battery metal that will be needed to making batteries for EVs.
Reuss stated that the Americna auto maker was also considering some opportunities of investing in lithium in Australia but did not disclose any specific details.
(Adapted from DeccanHerald.com)