VW CFO says sourcing batteries for new EVs after ICE ban will be difficult

EU member states have agreed to eliminate vehicle carbon emissions by 2035, effectively killing combustion technology and causing automakers headaches

But phasing out ICE-powered cars and SUVs isn't the problem. According to Volkswagen Group's CFO Arno Antlitz, automobile makers are having trouble getting enough batteries for all-electric alternatives

Though a 100% CO2 reduction by 2035 isn't yet legal, the agreement is done. Italy and Slovakia requested an extra five years to attain the 100% target.

All member states decided to back the original idea, making it illegal to sell ICE vehicles in Europe after 2035 and requiring automakers to move to electric automobiles.

Mineral prices, especially lithium, have risen and may rise further. Volkswagen, along with Ford, Volvo, and Mercedes, backed the plan.

"It's a challenge. Antlitz told Reuters at Reuters Automotive Europe that it's possible.

"Ramping up automobile plants isn't the most difficult," he said. Increasing the battery supply chain will be difficult.

This supply chain depends on lithium, nickel, manganese, and cobalt for EV batteries. Due to undersupply, the price of these minerals has already skyrocketed, and it will undoubtedly get worse as carmakers roll out more EVs in the years before the ICE ban.

Carlos Tavares, CEO of Stellantis, predicts an auto battery shortfall by 2024-25.