Mobility Impact Report: Automotive Edition, Q1 2025

Renewable Energy Adoption Amid Tariff Complexities Transforms Auto Manufacturing

This in-depth analysis examines how leading automotive companies are making significant environmental commitments, with Tesla's Berlin gigafactory achieving 100% renewable operations through onsite solar and wind installations, thereby eliminating 450,000 tonnes of annual CO₂ emissions. The research examines how these renewable energy implementations encompass both cost optimisation strategies and emissions reduction initiatives, necessitating sophisticated materiality assessment processes that consider both financial materiality through operational savings and impact materiality through climate mitigation.

The report additionally reveals how tariff fluctuations on batteries and critical minerals have disrupted sustainability initiatives for 65% of manufacturers creating substantial challenges for EV transition timelines.

Call to Action: Automotive manufacturers should develop regionalised battery production capacity and implement diversified critical mineral sourcing strategies.

The report highlights significant material innovation trends, with BMW increasing its recycled aluminium usage to 50% in Neue Klasse platforms, while other manufacturers explore advanced circular economy principles throughout their production processes. These initiatives not only reduce dependency on virgin materials but also enhance resilience against supply chain disruptions and commodity price volatility, representing growing industry recognition of resource efficiency as a key consideration for long-term value creation.

This analysis reveals that Toyota has committed USD 70 billion to hydrogen infrastructure across 15 European cities by 2030, exemplifying the industry's diversified approach to alternative fuel technologies. This strategic investment demonstrates how automotive manufacturers are addressing both immediate decarbonisation challenges and long-term energy transition opportunities, balancing multiple technology pathways while navigating evolving regulatory landscapes under frameworks such as the Corporate Sustainability Reporting Directive (CSRD).

The report examines significant workforce transformation initiatives, with Mercedes-Benz upskilling 22,000 workers in EV battery technology and Ford investing USD 525 million in EV training programmes. These substantial human capital investments reflect a growing awareness of the social dimensions of automotive sustainability transitions, necessitating comprehensive approaches to worker reskilling, community engagement, and just transition principles throughout manufacturing operations.

Looking toward renewable energy integration in production facilities, the report identifies how automotive manufacturers are increasingly adopting comprehensive approaches that combine solar, wind, and other renewable sources. Ford's Cologne plant has been operating entirely on renewable energy since 2008, while its Almussafes facility in Valencia aims to increase its solar capacity to nearly 10 MW. These initiatives demonstrate how manufacturers are addressing Scope 1 and 2 emissions throughout their value chains while enhancing resilience against energy price volatility and regulatory changes.