Automotive companies around the world are planning to spend over half a trillion dollars on electric vehicles and batteries by 2030, exclusive analysis from Reuters has revealed.

Just under three years ago the news agency published similar analysis which found carmakers planned to spend $300 billion on electric vehicles and related technologies.

However, the push for zero-carbon mandates in cities across the world, including London and Paris, have driven companies to spend more.

Reuters said that its most recent analysis shows that these automotive businesses are now planning to spend roughly $515 billion over the next five to 10 years to generate new electric vehicles, shifting away from petrol and diesel.

According to the research, Europe is currently leading investments in the technology, with $112 billion – nearly half – of all European investments coming from Volkswagen.

In the US, Tesla, GM, and Ford split an almost even investment share.

In Asia, investments by Chinese car manufacturers make up $125.6 billion – Or 66 per cent – of overall investments in the region.

But some people in the industry are concerned that customer demand for EVs will not match the speed at which automakers are currently moving to develop and sell the technology.

"Once a few manufacturers announced EV programs, everyone else had to announce their own or be viewed as being left behind," Brian Maxim, head of global powertrain forecasting at AutoForecast Solutions told Reuters in an interview.

“This leaves a lot of vehicle manufacturers planning significant volumes for a vehicle category that has unknown consumer acceptance, and will have minimal to no profit" for years.”

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