GM Deal with LG Chem Further Bolsters the Car Maker’s Commitment to Electric Cars
Electric Cars Create Jobs in Ohio
In case you needed more evidence that the future of the automobile will be electric, GM (NYSE: GM) just announced that it’s forming a joint venture with LG Chem to build a battery cell production plant in Ohio.
The cells will be used for electric cars.
Construction is expected to begin next year, and the cell manufacturing facility is expected to be one of the largest in the world. It’s also expected to create 1,100 new jobs in an area that has been hit hard by job losses.
This particular facility is likely to produce batteries solely for GM’s next generation of electric vehicles, many of which are expected to hit showrooms in 2021.
GM CEO and Chairman Mary Barra said the new plant is “another important and significant step toward an all-electric future,” which includes at least 20 new all-electric vehicles globally by 2023.
As I noted earlier this week, the rapid integration of electric vehicles on the world’s highways is also going to start dipping into petroleum demand.
According to Bloomberg’s latest report on electric vehicles, thanks mostly to a decrease in battery costs, the price parity between electric vehicles and internal combustion vehicles will be reached in about five years. And this is the primary driver behind a very inconvenient truth for internal combustion bulls: In 20 years, more than half of all passenger vehicle sales will be electric.
57%, to be exact.
With this increase in electric vehicle demand, along with newer internal combustion vehicles coming to market with higher fuel economies, we’re not far off from a peak in gasoline demand.
According to Wood Mackenzie, global gasoline demand is likely to peak in about 10 years — merely a blip in time when you consider just how quickly 10 years can sneak up on you.