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Global investments in electric vehicles total $168 billion

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A complete transition to electric vehicles (EVs) is underway in the global automotive industry. A total of $168 billion has been committed to investment by the top five players in the global market, including Hyundai Motor Group.

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Xiaomi, the Chinese multinational electronics company, is planning to invest $10 billion in the electric vehicle race.

According to industry reports, Stellantis N.V., the world’s 4th largest automaker, announced at EV Day 2021 on July 8 that it will invest €30 billion ($35.6 billion) in the segment by 2025. In Europe and the U.S., 70 percent of the company’s sales will come from EV models by 2030.

The 14 car brands under Stellantis’ umbrella, including Fiat, Chrysler, Jeep, Peugeot and Maserati, will have their own electric vehicle lineups.

In collaboration with world-leading battery manufacturers, Stellantis will also build five battery plants in Europe and the U.S. Reuters reports that Samsung SDI Co. is in talks with Stellantis to build the automaker’s battery plant in the U.S.

U.S. auto giants have also signaled their intention to invest heavily in electric vehicles. Ford Motor Co. announced in May it would invest $30 billion in electric vehicles through 2025, and General Motors Co. (GM) announced in June its plan to invest $35 billion by 2025.

Ford will build EV battery plants in the U.S. in partnership with SK Innovation Co. while GM and LG Energy Solution Ltd. are building their second EV battery plant in Tennessee, U.S.

Analysts note that the world’s largest automakers are investing considerable money into the EV segment due to the lack of a dominant leader and the positive outlook for EVs.

According to the International Energy Agency (IEA), there will be 80 million electric cars on the road worldwide by 2030, an increase of 11.7 times from 6.8 million last year. If plug-in hybrid electric vehicles (PHVs) are included, the growth rate is even higher, increasing 12.1 times from 10.2 million vehicles to 124 million, over the period.

In the meantime, a number of countries across the globe are planning to ban the sale of combustion engine vehicles. Sales will be banned in the Netherlands and Norway by 2025, in Germany and the United Kingdom by 2030, in Canada, China, Korea, and the United States by 2035, and in France by 2040.+

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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