Volkswagen Group’s (OTC: VWAGY) U.S. CEO Scott Keogh has warned America could face key challenges to ramp up battery production plans to meet the demand for electric vehicles, Reuters reported, citing the executive.
What Happened: Keogh said the U.S. could face issues linked to attracting skilled workers, mining for key metals, and supply chain and that the switch to EVs is the single biggest "industrial transformation in America."
Keogh said the U.S. could potentially employ hundreds of thousands of people by 2030 for battery production and needs to be “making 8.5 million batteries" annually compared with 150,000-200,000 a year now.
Why It Matters: President Joe Biden has set a goal of 50% of new-vehicle sales to be electric or plug-in electric by 2030.
Volkswagen, the world’s second-largest automaker by sales, has set aside billions of dollars to switch to EVs just as many legacy rivals are doing to take on EV leader Tesla Inc (NASDAQ: TSLA).
Automakers are rushing to secure supplies for key minerals such as lithium and nickel that go into making batteries for EVs.
Demand for lithium and nickel is expected to rocket further from recent highs as global economies and companies rush to electrify their vehicles.
Tesla CEO Elon Musk has said the company could buy a mining company to fuel its needs for lithium and other raw materials.
See Also: Is Tesla Buying A Lithium Mining Company? What Elon Musk Has To Say
Price Action: VWAGY closed 3.5% lower at $19.14 on Thursday, according to data from Benzinga Pro.
