On 12 September 2023, Ford unveiled a hybrid version of its F-150 pick-up truck for 2024 at the NAIAS 2023 (Detroit Motor Show) night event, highlighting the traction that BEVs cannot provide and promoting the benefits of electric vehicles, which also feature a generator. announced a doubling of the production of F-150 hybrid vehicles.

Despite the Biden Government’s goal of 50% of car sales being EVs by 2030, companies are still facing a shortage of the mineral resources needed for batteries and motors, and cost targets for batteries have not been met. Even the general overheads of plant construction are cost prohibitive. With regard to the production of BEVs, the next generation of strategic products, the union UAW has demanded wage increases of more than 40%, and the building of a new ‘Made in America’ BEV industry is still far from certain. Another reality is that demand for BEVs after early adopter purchases is not as strong as expected, partly due to high selling prices.

While it remains to be seen at what level BEV market share will rise in the US in 2030, the trend towards carbon emissions reduction and green innovation to achieve this will not recede. In parallel with solving the challenges of developing the next generation of low-cost BEVs, HEV and PHEV products are also becoming increasingly important. New supply chain building has begun, including batteries, motors, power electronics (inverters) and their components, which are required at all levels of electrification.

Tesla plans to produce a low-cost BEV in the Mexican state of Nuevo León at a cost of USD 25,000, with suppliers also set to converge on the state. Legacy OEMs such as GM are also considering competing with Tesla’s plans. The competition will be how to successfully develop the next generation of low-cost BEVs by reducing costs through new methods of development and manufacturing, and the suppliers with the technology and products to support them will be responsible for building the new supply chain and the next generation of the BEV industry.