Global Chip Supplies Stabilize At Below Desired Levels, Auto News, ET Auto
DETROIT – The chairman of General Motors Co said on Tuesday that the global supply of semiconductor chips will start to stabilize, but at levels below those desired by the auto industry as it tries to replenish vehicle inventories .
“We’re going to see stabilization to some extent before we get the volume we really need,” Mark Reuss said at a conference hosted by the Detroit Regional Chamber on Mackinac Island in northern Michigan.
The global chip shortage has prompted GM and automakers around the world to slow production at factories, with some executives warning that the problem could persist until 2023.
GM Chief Financial Officer Paul Jacobson said last week that GM expects a “more stable year” in 2022 for chip suppliers, but warned that third-quarter wholesale shipments could be down by 200,000 vehicles due to the shortage.
Going forward, Reuss said a critical issue for the auto industry would be recycling materials used in electric vehicle (EV) batteries, such as rare earth minerals.
âThere is a lot of material in a battery cell that can be reused,â he said. “We spend time on this.”
GM announced in July that it was investing in a US lithium project that could become the country’s largest by 2024, making the No.1 US automaker one of the first to develop its own source of battery metal. necessary for electric vehicles.
Reuss said GM is also exploring opportunities in Australia, without disclosing details. (Reporting by Ben Klayman Editing by Chris Reese and Barbara Lewis)