This $10 Trillion Shortfall Spells Trouble for the EV Rollout

[Inside Wall Street with Nomi Prins]( This $10 Trillion Shortfall Spells Trouble for the EV Rollout By Clint Brewer, Analyst, Inside Wall Street with Nomi Prins The government has big ambitions for your next car. Why do I say that? Because, like it or not, electric vehicles (EVs) are part of the energy transition that’s underway. And fast-tracking EV adoption is one of the most important pawns in the government’s green fight. We can see that in fresh spending coming from Washington D.C. There’s $135 billion flooding into the EV sector from federal spending bills. Bills like the Inflation Reduction Act and Infrastructure Law. That money will go into everything from tax credits to incentivize EV purchases… To ramping up domestic EV production… To building out the charging infrastructure across the nation. There are even proposed rules that could force automakers to boost EV production. Take the Environmental Protection Agency (EPA), for example. The EPA proposed new emission standards. These could help EVs take market share away from other vehicles. With these standards, 67% of new vehicle sales could be EVs in 2032. That compares to just 5.8% in the U.S. last year. That means the federal government is pulling all the levers to boost the EV sector. Its goal is to make half of all vehicles sold in the U.S. zero-emission by 2030. But there’s one looming problem… And it threatens to bring the entire EV rollout to a halt. Inside Wall Street editor Nomi Prins calls it EV’s fatal flaw. And in [this new presentation]( she explains why it’s the $10 trillion question every investor should be asking in 2023. It has all the major automakers scrambling. Recommended Link [WARNING: 110 Banks Preparing for Digital Dollar]( [image]( If you have any money in the U.S. banking system, pay close attention because… Bank of America is warning its clients that ALL checking accounts are likely to be replaced with digital dollars soon. And it’s not just Bank of America. This former VP of a major U.S. investment bank just released [this list with more than 110 banks that are preparing to do the same.]( Is your bank on the list? [Click here to see the full list.]( -- Lofty EV Ambitions Big ambitions by the government mean that automakers are ramping up plans for EV production. General Motors (GM) wants capacity for 1 million EV units by 2025. It has said it wants to beat Tesla as the EV sales leader in the U.S. Not to be left behind, Ford is jumping in, too. It said it will sell 2 million EVs a year starting in 2026. And it’s not just U.S.-based manufacturers. Toyota is targeting 3.5 million units by 2030. But to meet those lofty EV targets, something has to change. That’s why automakers are scrambling to secure the building blocks that power EVs. I’m talking about battery metals. A typical EV battery is made up of metals like nickel, manganese, cobalt, and graphite. And there’s one metal in particular that could prevent EVs from ever becoming mainstream. That metal is lithium. It has become so important to the EV supply chain that many people call it “white gold.” Lithium-ion batteries are the workhorse for EVs. A typical battery contains about 13 pounds of lithium. But there’s a problem. The International Energy Agency (IEA) says the auto industry could be facing shortages of lithium as soon as 2025. New lithium mining projects are struggling to keep pace with all the demand that’s coming. And that’s forcing automakers into a new line of business. Recommended Link [“Amazon Loophole” Allows You to Collect Up to $28,544 Starting as soon as December 10th]( [image]( These folks got it made! Thanks to a little-known IRS loophole… They are collecting huge payouts from government-regulated “royalty programs”… every single year! [“Started from a zero balance... Just hit $1,200 a month in [royalties].” – Neil P.]( Like Neil P., who is now collecting $1,200 a month in “royalties.” [“Increased my [royalties] to over $30,000 last year.” – Tom K.]( Tom K. reports he’s making $30,000 a year! [“Increased my [royalties] from about $2,000 to $60,000…” – Elaine T.]( And Elaine T. boosted her payouts to $60,000 per year! If you want to participate, you’d better hurry. The next payout is scheduled for as soon as December 10th. [Learn how to collect your first payout as soon as December 10th.]( *Verified review. Past performance does not guarantee future results. -- The $10 Trillion Question I’m talking about mining and refining battery metals. The auto industry needs $10 trillion worth of metals through 2050. Otherwise, it won’t be able to keep up with these lofty EV goals. Nomi calls it the $10 trillion question. And it’s why automakers are racing to secure a long-term supply of metals like lithium. So far, Ford has signed 11-year contracts on multiple continents to secure lithium supplies. GM took it a step further and invested $650 million directly into the largest lithium project in the U.S. And Tesla could spend $1 billion building a lithium refinery that could supply 1 million vehicles. But even this might not be enough. That’s because it takes a long time to bring new lithium mines online. It took over five years for mines in the last decade to go from discovery to production, according to the IEA. So for all the lofty goals and billions of dollars flowing to support the EV buildout, it could still be in jeopardy. That is, unless we get a major battery breakthrough. Recommended Link [Will AI Save the Struggling Electric Auto Industry?]( [image]( 20 years of flawless sailing conditions… Plus, an army of politicians propping up the industry on tax credits… And America’s electric vehicle makers STILL can’t figure it out! The “state of the industry” is almost laughable: - 80,000 Americans are patiently awaiting their electric Hummers — GM has delivered just TWO all year! - Top-of-the-line EV models use a 1980’s battery technology so outdated — it’s like duct taping 5,000 Energizer AAs under a car. - $60,000 sticker prices have The Wall Street Journal reporting ABYSMAL sales as “car companies are finding a limited pool of consumers willing to pay.” [But now, one company using AI promises to unleash a new era of affordable EVs in America…]( And mint more new millionaires than the rise of Tesla. I call this firm’s solution The “EV Master Key.” [Click here for the full video presentation]( -- History Is Repeating The shift to EVs is one of the biggest distortions in the energy markets right now. But if history is any guide, it’s also a moneymaking opportunity for those who know where to look. I say that because it’s not the first time the auto industry faced a major shift. [As Nomi shows in her new presentation]( the last time automakers went through a change as big as this one was in 2012. That’s when technology took over cars. Features like GPS, music streaming, lane control, and assisted parking were either nonexistent or very limited back then. Until smartphone tech started taking over our car’s dashboard. Most new cars today have something resembling an iPad built into the dashboard. And they have about 3,000 microchips powering 70+ sensors. But the automakers weren’t the biggest winners in that smart car revolution. Instead, the real winners were companies that could leverage the technology going into vehicles. Like semiconductor companies. The global market for chips in the auto sector today stands at almost $70 billion. That’s up 175% from 2012. Chip companies with large automotive sales like NXP Semiconductors and STMicroelectronics saw their stock prices soar as a result. But over the same time, automakers like GM and Ford fell behind. You can see that in the chart below… [Chart] Today, Nomi says we’re seeing the next big distortion play out in the auto sector. This time, it’s EVs at the center instead of smart cars. But once again, automakers won’t be the biggest winners to come out of it. Remember how I said earlier that the EV buildout could be in jeopardy without a major breakthrough in new lithium supply or battery technology? Well, that’s exactly what Nomi set out to find. She’s been following this story all across the country. From lithium mines in rural Nevada… To a secretive Florida meeting. It put her on the trail of one company. She put her findings in a new video presentation – including details of EV’s fatal flaw… and the Indiana firm that could solve it with its battery breakthrough. [Watch it here](. Regards, Clint Brewer Analyst, Inside Wall Street with Nomi Prins --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). MAILBAG Readers continue expressing their thoughts on how to solve the U.S. national debt crisis. Last Tuesday, reader Peter argued for raising tax rates on corporations and the wealthy. This reader disagrees… and believes the problem lies in productivity, not taxes… I disagree with Peter. The upper-income quintile already pays 95% of the taxes in the USA after accounting for social welfare benefits. Raising taxes (even more) on wealthy individuals and companies seems like a simple solution to the rising national debt, but what happens beyond stage one? When corporations have to pay higher taxes, they are less profitable. Thus, Main Street investors who are saving for their own retirement will make lower returns, and they might never be able to retire. Peter thinks that the government should take care of its own citizens. Centralized industrial planning is inefficient, and that includes the crony capitalist system in the USA with all its subsidies and the Federal Reserve system. Why should we let some elite class control everything, when each of us can spend our own money according to our own needs? Peter should read more economics books from Thomas Sowell. The poor in the USA have a better quality of life than the poor in other Western democracies. In the few exceptions, the poor in those few other Western democracies are more productive than the poor in the USA. It's not a taxation problem. It's a productivity problem. – Joe B. On the other hand, this reader believes taxes are one way to solve the debt problem… as well as defunding the IRS… I agree that everyone should have skin in the game. Another way to do that is to raise the sales tax. That way everyone who "buys" something is paying taxes. Defund the IRS – which would save a huge amount of money, and appropriately by state and county, levy a sales tax that would include a percentage for the federal government. No more rich guys with the slick lawyers getting around their fair share. Just simply everyone paying taxes on everything they buy. Rich, poor, or somewhere in between, everyone is chipping into the federal government. Everyone enjoys the benefits, and everyone shares in the costs. – Alice W. Do you agree with Joe that there is more of a productivity problem than a taxation problem? And after reading today’s piece, what do you think of the shift in the auto industry? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). IN CASE YOU MISSED IT… [Readers dodge huge losses, trading this ONE stock (Ticker revealed)]( Master Trader Jeff Clark helped his readers dodge huge losses during the crashes of 2008, 2020, and 2022. Last year, he helped them double their money 13 TIMES. But after watching his OWN 23-year-old son lose -60% in risky crypto & tech stocks… Jeff has a new WARNING. Jeff says: “Sell Your Stocks BEFORE The Stock Shock!” [Click Here to See Jeff’s New Warning.]( P.S. – Jeff refuses to watch his own son lose any more money in risky investments. So, he is rolling the camera to help him win back all his losses – and then some – [with just ONE ticker.]( [image]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@rogueeconomics.com). © 2023 Rogue Economics. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Rogue Economics. [Privacy Policy]( | [Terms of Use](