Stellantis NV and Toyota Motor Corp. have voiced their opposition to a plan proposed by the Biden administration to curb auto pollution. In their comments submitted to the federal government, the automakers argued that the plan places unrealistic sales targets on electric vehicles (EVs) and fails to account for the challenges posed by limited supplies of critical minerals required for EV batteries.
Both companies expressed concerns that the proposed emission curbs for cars and light trucks are excessively optimistic and unfairly discriminate against plug-in hybrid vehicles. According to Toyota, the plan overlooks crucial obstacles such as the scarcity of minerals needed for battery production, the absence of local mining or refining of these minerals in the US, inadequate infrastructure, and the high cost of EVs.
The automakers' comments come as they grapple with the most ambitious tailpipe emission limits ever proposed in the US. The Environmental Protection Agency (EPA) aims to implement these limits in model years 2027 and beyond. To comply with the strict carbon dioxide, soot, and smog-forming pollution standards, the EPA envisions a significant increase in EV penetration, with EVs accounting for 67% of new light-duty vehicle sales and 46% of new medium-duty vehicle sales by model year 2032. Currently, battery electric vehicles and plug-in hybrids make up less than 10% of the market.
While companies have the option to comply using alternative technologies, critics argue that the proposed standards effectively impose an EV mandate that limits consumer choice. The plan goes beyond President Biden's earlier goal of having half of new passenger cars and light-duty trucks be zero-emitting vehicles by the end of the decade.
In response, Ford Motor Co. and other automakers have urged the EPA to ease the stringency of its requirements between 2027 and 2029, creating a more gradual transition to the planned 2032 standards. Toyota has criticized the EPA for the extreme annual stringency increases proposed initially.
Stellantis, the result of a merger between Fiat Chrysler and France's PSA Group, pointed out that the EPA's expectations for EV market growth are overly optimistic and fail to consider challenges such as manufacturing capacity and consumer support. The company argues that the envisioned EV adoption rate poses significant risks to the automotive industry, which must comply with these standards regardless of whether the assumptions hold true or not.
Toyota also raised concerns about the EPA's cursory assessment of the supply of critical battery minerals, including those found in US deposits.
Meanwhile, Tesla Inc. has urged the EPA to be even more aggressive in its approach, given the rapid pace of EV adoption. Tesla suggests targeting a battery electric vehicle penetration rate of at least 69% by model year 2032, citing the demonstrated technology, its rapid deployment, and decreasing competitive costs.
Both Toyota and Stellantis have recently outlined their plans to ramp up EV sales after lagging behind their competitors in vehicle electrification.