Fisker Aims for Climate-Neutral EV by 2027

Fisker's Ambitious Climate-Neutral Vehicle Goal

Fisker Inc., an emerging electric vehicle manufacturer, has announced a significant objective: the development of its first climate-neutral automobile by the year 2027.

Currently, Fisker has not yet launched a vehicle for sale, regardless of its environmental impact. This makes the stated goal particularly challenging.

Fisker Ocean SUV and Future Plans

The Fisker Ocean SUV, slated to begin production in November 2022, will not achieve climate neutrality, as confirmed by CEO Henrik Fisker. The company intends to designate a different, currently unrevealed vehicle as the one to meet this standard.

During an investor briefing on Tuesday, Mr. Fisker detailed the company’s progress and future direction.

Enhanced Range and Reservation Numbers

The anticipated range of the Ocean SUV has been increased to a maximum of 350 miles. This exceeds the earlier estimate of 300 miles.

As of March, over 14,000 reservations have been secured for the Ocean, as reported in the annual shareholder report.

Expansion to Four Vehicle Models

Fisker aims to have a portfolio of four distinct vehicle models available for purchase by 2025.

Introducing the "UFO" Project

Mr. Fisker alluded to a potential luxury vehicle, internally referred to as the “UFO,” which will utilize the company’s FM29 platform architecture.

Company Background

Fisker became a publicly traded company through a merger with Apollo Global Management Inc. in October. The valuation at the time of the merger was $2.9 billion.

Henrik Fisker himself is a well-known automotive designer, previously responsible for the designs of iconic vehicles such as the Aston Martin V8 Vantage, the Aston Martin DB9, and the BMW Z8 roadster.

Fisker's Commitment to Carbon Neutrality

Numerous organizations across various sectors have previously announced intentions to achieve carbon neutrality. Henrik Fisker communicated to investors that the company intends to reach climate neutrality without relying on the purchase of carbon offsets. These offsets represent credits acquired by companies to register a reduction in CO2 emissions related to their initiatives or products.

Instead, Fisker stated their focus will be on collaborating with suppliers to innovate climate-neutral materials and manufacturing techniques. The company details its proposed strategies on its website, dividing the vehicle's lifecycle into five distinct stages: upstream sourcing, manufacturing and assembly, logistics, the usage phase, and end-of-life management.

Lifecycle Phase Strategies

For each stage, the company outlines specific approaches, including the localization of manufacturing processes. Achieving complete climate neutrality in vehicle production presents significant challenges, even with these plans in place.

Certain materials and components, such as steel, are particularly difficult to decarbonize due to their inherent production processes.

Fisker confirmed that its manufacturing partners are also pursuing climate-neutral objectives. This is demonstrably true in the case of Magna Steyr, an automotive contract manufacturer.

A contract has been established with Fisker for Magna Steyr to exclusively produce the Fisker Ocean in Europe. Magna has established a target for climate neutrality across its European operations by 2025, with a global target set for 2030.

Foxconn, Fisker’s primary partner for Project PEAR – their second, more affordable vehicle – also has a net-zero emissions goal, though its timeline extends to the mid-century point.

Impact and Industry Comparison

Ambitious objectives like these can stimulate innovation in manufacturing and motivate other automotive manufacturers and suppliers to pursue similar goals. Several other automakers, including Polestar and Porsche, have pledged carbon neutrality by 2030.

Mercedes, on the other hand, anticipates reaching this target by 2039.

Fisker appears to have developed a strategy for the recycling or reuse of its EV batteries once they are no longer suitable for vehicle operation. The company intends to expand its leasing program throughout the vehicle’s projected 15-year lifespan.

This approach would, in theory, guarantee Fisker’s possession of a substantial number of its vehicles at the end of their useful life, facilitating responsible end-of-life management.