The Electric Vehicle Transition Under Pressure

In light of climate goals and component shortages, the automotive energy transition puts the industry under pressure.

As the global automotive industry continues its shift towards electric and hybrid solutions, the energy transition is proving to be more complex and fraught than expected. Between strict CO2 regulations, battery and semiconductor shortages, and economic imperatives, manufacturers and suppliers are navigating a volatile environment.

European governments have set ambitious targets, pushing manufacturers to massively electrify their ranges. However, the production of electric vehicles (EVs) relies on a fragile supply chain, with lithium-ion batteries concentrated in a limited number of countries, leading to high costs and logistical tensions.

Navigating by sight

Some major players are revising their strategies. Ford, for example, has announced an exceptional budget of $19.5 billion to realign its electric and hybrid range, while other European manufacturers are ramping up promotions and incentives to sell older thermal or hybrid models.

The ongoing semiconductor shortage complicates production and leads to temporary plant shutdowns in Japan and China, slowing the ramp-up of electrified vehicles.

Yet, innovation continues: partnerships for battery production, new recycling plants, and advancements in solid batteries demonstrate that solutions exist. Consumers are progressively turning to more environmentally friendly vehicles, directly influencing industrial decisions.

You might be interestedin this article:

Electric Car

• 21/12/2025 12:34

Here is the most exclusive electric hypercar in the world!

The energy transition in automotive is thus a significant challenge: merging performance, sustainability, and profitability while meeting the growing demand for clean mobility. The industry, under pressure, is reinventing itself to shape the future of sustainable mobility.

READ ALSO: Thermal 2035: Are French manufacturers sacrificed?