SAFE Commends GM Plan To Go EV-Only By 2035

Washington, D.C.—Responding to General Motors’ announcement that it plans to offer only electric vehicles by 2035, SAFE President and CEO Robbie Diamond made the following statement:

“It is exciting to see a major U.S. automaker make such a bold statement that recognizes the future of transportation is electric, but comes with a warning that we must speed up the growth of the supply chain so that vehicles and their batteries are American-made. The future of transportation is connected and electric, but it is controlled by China. It is vital the United States acts now to ensure we do not become dependent on Beijing’s domestic policy decisions for our future transportation needs. Announcements like GM’s are an encouraging and welcome step in the right direction, but they must be backed up by the hard work of building a supply chain free from Chinese control.”

As governments and companies invest hundreds of billions of dollars in the switch to electrification, SAFE’s latest report, The Commanding Heights Of Global Transportation, details the vast control which China exerts over the entirety of today’s EV and battery supply chain:

  • China holds direct or indirect control of 70 percent of the world’s lithium supply.
  • China produces 61 percent of the cathodes and 83 percent of the anodes used in batteries – the U.S. produces zero percent.
  • China has ownership of 80 percent of the rare earths supply needed for U.S. weapons systems and EVs, and control over the processing of this supply.
  • China produces roughly 75 percent of the permanent magnets that use rare earths, another critical component for EV motors
  • By 2020, 107 of the 142 lithium-ion battery megafactories under construction worldwide are, or will be, located in China. Just nine are planned for the United States.
  • More than twice as many EVs sold cumulatively in China compared to the United States. 421,000 of the 425,000 electric buses worldwide are on Chinese roads.

“Major announcements like this, in tandem with the policy goals of this administration, provide the United States with a window to develop the full minerals-to-markets EV supply chain and reduce our dependence on China for the critical minerals, batteries and vehicles that will power our 21st century economy,” Diamond added.