BMW CEO Oliver Zipse, a long time advocate against banning internal combustion engine (ICE) vehicles, warned against automakers opting for an electric-vehicle (EV) only strategy amid high energy and raw material prices.
Zipse was in New York on Friday speaking at a roundtable event, and said:
The comments come as many automakers are looking to drop production costs amid sky-high pricing for raw materials.
Companies are now dealing with higher costs and a worsening market due to the war in Ukraine.
The nickel market, one of the key ingredients in EV batteries, has seen a massive spike due to bans and other sanctions on Russian materials. This spike is due to the Russian mining company Nornickel. Nornickel produces 20 per cent of class one nickel in the world.
However, western countries are finally looking to provide a solution for automakers in Europe and North America, whether through finding new sources or investing in exploration and extraction within their borders.
Canada, for its sake, has put aside $3.8 billion to establish a critical mineral strategy. At the same time, the province of Ontario put forward a critical minerals plan that focuses on EV batteries and the auto sector.