FIRST SHIFT - 6/01/2022: Tavares' EV battery outlook

it's june 1st and you're watching first shift i'm angelina zarnecki coming up stelantis ceo carlos tavares shares his ev battery outlook but first kristen strecoletas has your morning headlines thanks angelina over the weekends a battery pack caught fire at rivien's plant in normal illinois it led to an evacuation of the portion of the plant where battery packs are tested the cause of the fire is under investigation according to the normal fire department firefighters found a battery packed in thermal runway meaning it overheated and caught fire in an email to automotive news a rivian spokesperson wrote that the battery pack was already identified as faulty prior to the fire and that rivien was actively investigating the cause of the defect the world's largest contract electronics maker foxconn has a positive outlook regarding the supply chain the taiwan-based company says the second half of the year is heading quote in a better direction as kova 19 lockdowns in shanghai appear to ease the decrease in kova 19 cases has caused shanghai to relax some of the pandemic's toughest virus controls in a story from bloomberg tesla and volkswagen plan to continue isolating workers at their shanghai factories until june 10th workers will continue in so-called closed loop management systems a tesla representative in china did not respond at the time of the story and a vw spokesperson said quote saic vw is still under a closed-loop production system and will further adjust production plans based on relevant policies without specifying a specific time frame thanks kristin stelanta's ceo carlos tavares expects batteries for electric vehicles to be in short supply by 2024 or 2025 followed by a deficit in the raw materials needed to make the evs in 2027 or 2028. tavares revealed plans last week to open a battery plant in kokomo indiana in 2025 it's among more than a dozen plants automakers and suppliers are planning or building in north america building out the ev supply chain so that it provides sufficient quantities of affordable materials such as lithium in the time frame automakers are targeting is a significant challenge according to sam fiorani vice president of global vehicle forecasting at auto forecast solutions which tracks auto production and on the regulatory side tavares says he is hoping for stability when it comes to environmental standards the battery plant that solantus is planning in indiana is a joint venture with supplier samsung sdi indiana is offering an incentive package of up to 186 and a half million dollars in conditional tax credits training grants and investments that includes funding that would offset the costs of the plant's infrastructure according to the indiana economic development corporation the automaker has long had a presence in kokomo and the surrounding area making engines and transmissions for breaking news 24 7 stay with autonews.com have a great day