Stellantis is taking on truck electrification in a different way than Ford or GM. Instead of just launching a line of all-electric trucks to continue selling alongside gas-powered models, it will also produce a Ram electric truck extended range to accommodate an intermediary platform that can attract more participants.
During a Q&A session last week at CES, shortly after the reveal Concept Ram 1500 Revolution BEV—and confirmation of the range-extending truck—Green Car Reports asked Stellantis CEO Carlos Tavares how such a vehicle fits into tighter new regulations from california and EPA.
The CEO’s reply didn’t reveal anything about the truck, but it did come to a clear point: It was part of a plan to grow rapidly.
“What we’re seeing around the world is you can’t wait for regulations; Tavares said.
Stellantis targets zero carbon emissions by 2038
It’s a notable change from Stellantis’ predecessor, the Fiat Chrysler Automobiles, which opted in. pay fines for missing fuel economy targets in the US and spend hundreds of millions of dollars buy emission credits from Tesla to comply in Europe
The CEO went on to fact-check: “There comes a time when you might ask: Should we allow these operations if they are not carbon neutral?”
“So it’s not just about morality, it’s not just about doing the right thing for the planet,” Tavares added. “It’s also about anticipating any kind of regulation that will be completely dogmatic on that front.”
Tavares points to Euro 7 regulations and how regulators failed to follow expert guidance on industry response speed and gave companies such a short deadline to comply. At this point, he said, he has eased back on lobbying and is simply trying to go faster than regulators.
“The conclusion I get from this is that we just need to move fast,” says Tavares.
Electric cars are more expensive
Moving fast gets complicated for Stellantis, which has 14 vehicle brands and two mobile brands, all with different markets and price points.
Tavares emphasized that the cost of building an electric vehicle is still 40% higher than that of a comparable internal combustion engine vehicle.
Brand Stellantis – 2023
That leaves large-scale global automakers, such as Stellantis, in a dilemma.
“You can’t pass that percentage on to consumers; it’s too high and you’ll lose,” Tavares said. “The other direction is that you sell at a loss to protect your solvency and you need to restructure your company. Wrong direction.”
“So the only direction left is to absorb as quickly as possible 40% of the additional costs, so that you can protect the sustainability of your company by protecting your margins,” explains Tavares. “At the same time, you protect the affordability of the middle class to be able to buy large quantities of electric vehicles that will then contribute to overcoming global warming.”
Battery solutions—in a few years
Tavares suggests that in this race for electrification, automakers face a variety of production issues related to vehicle affordability, manufacturing costs, and the cost structure of batteries. indexed based on volatile raw material costs.
The chief executive said last year that the added cost of producing electric vehicles was “above the limit” the auto industry could sustain. On the battery side, the situation is not significantly better. Global EV battery cost to increase 7% by 2022, breaking a perennial trend showing predictable improvements in affordability each year. Bloomberg New Energy Finance (BNEF), which compiles an annual index on battery costs, does not expect battery costs to start falling again until 2024, when more lithium mining and refining capacity will go away. into operation.
Stellantis aims to double battery power density
The CEO argues that some of these problems can be solved by looking at the batteries themselves and their weight.
Looking at the chemistries of battery cells under development, the potential for doubling the energy density by the end of the decade would yield great progress.
Tavares also points to the potential for future optimization of EV batteries, bypassing the battery entirely and taking a modular platform approach for the next step.
No more boxes, go to solid state
“Today we are making boxes, and then we bolt the boxes to the chassis,” he said. “So far, this is not technically optimized, so it’s a step forward where you’re going to pack your battery modules directly into the physical platform, in a way that will be efficient.” than from a pure architecture. perspective—less trade-offs for vehicle height, for example.”
When you do that, Tavares argues, electric vehicles with the same range as internal combustion vehicles weigh only about 500 pounds more, which helps with other productivity and efficiency aspects.
Factor solid state cells
Stellantis may achieve some success within the next few years. One potential path is to invest in Solid-state battery technology company Factorial Energywith production-grade cells from that company capable of delivering a 50% increase in power density as soon as 2026.
In the short-term, the company faces a host of challenging economic factors in 2023, Tavares sums up, as the industry increases supply and recovers from the semiconductor crisis while facing inflation. higher in cost and energy—all while the CEO feels there will be renewed downward pressure from the market.
Why not green the grid first?
Tavares believes that clean energy is the common denominator and that regulators are not listening to carmakers or taking into account the speed at which the grid is greening in certain countries or regions of the world.
“The order in which we should deal with this is pretty clear,” he points out. “Let’s start with the longest and hardest part, which is energy, then make sure you’re investing in infrastructure in a coordinated way with the people who are supposed to be selling electric vehicles.”
Otherwise, he argues, you will be selling expensive electric cars in some parts of the world under the necessary regulation before you have the infrastructure or a significant amount of clean energy.
As Green Car Reports has highlighted, that is not the case on the clean energy front in the United States, considering the power grid. Where do most Americans live? EV driving produces lower emissions than driving a 50 mpg petrol car and the short payback on the additional CO2 emissions to build an EV. A UCS analysis of last year’s F-150 Lightning shows the electric truck emissions equivalent to a gasoline car 85 mpg.
Concept Ram 1500 Revolution BEV
Would the Ram’s range-extending truck offer an even better solution, one that would keep drivers plugged in most of the time but quell concerns about reliability? Only occasional serious towing and carrying capacity? These are questions that cannot be answered until Ram reveals details about that truck. For now, Ram will reveal the specs of the all-electric truck within the next few months, with sales due in 2024. The range-extended truck is expected to debut soon. after that.
