Hertz going electric with Tesla EV order

In what can be considered the single largest purchase of electric vehicles in the world, Hertz Corp. has put in an initial order for 100,000 Tesla EVs by the end of 2022, along with investing in new charging infrastructure across the car rental company's global operations.

In addition, Hertz has teamed up with seven-time Super Bowl champion Tom Brady to showcase how it is making EV rentals fast, seamless, and more accessible as the company accelerates its commitment to leading a sustainable future of mobility and travel.

"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," said Hertz interim CEO Mark Fields. "The new Hertz is going to lead the way as a mobility company, starting with the largest EV rent fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world."

Although 40% of U.S. consumers say they are likely to consider an EV the next time they are in the market for a new vehicle, according to research think tank Pew, the rising popularity is quickly coming to heel before the shortages of the critical minerals and metals needed to build them.

According to "The Role of Critical Minerals in Clean Energy Transitions," a report published by the International Energy Agency earlier this year, the annual supplies of minerals and metals being fed into the burgeoning EV and battery storage sectors are expected to expand by 30 times by 2040.

In such a scenario, where global governments and industries achieve the targets of the Paris Agreement, low-carbon demand for lithium is expected to rocket 40-fold; and clean energy demands for graphite, cobalt, and nickel are expected to surge upwards by 25 times.

However, this does not damper the enthusiasm EVs are generating, particularly Hertz, which expects to begin rentals for Tesla Model 3's at its airport and neighborhood locations in U.S. major markets and select cities in Europe by early November.

Additionally, the rental company also plans to install thousands of chargers throughout its location network. As a result, customers who rent from this low-carbon fleet can expect to have eventual access to nearly 3,000 Tesla supercharging stations throughout the U.S. and Europe.

With the current order, EVs will comprise more than 20% of Hertz's global fleet and are expected to be supported by a combination of Level 2 and direct current fast charging in approximately 65 markets by the end of 2022 and more than 100 markets by the end of 2023.

Hertz said these ambitions could be affected by factors outside the company's control, such as semiconductor chip shortages or other constraints. Yet, evidently, they imply the looming scarcity of battery materials.

The IEA estimates that approximately 117 pounds of copper and 54 lb of manganese goes into the average EV – more than double the 49 lb of copper and 25 lb of manganese of conventional internal combustion engines – standard lithium-ion EV batteries need around 146 lb of graphite, 88 lb of nickel, 29 lb of cobalt, and 20 lb of lithium.

While it is undoubtedly ambitious, the likelihood of having all 100,000 EVs ready by the end of 2022 is a challenge to be sure.

To spread the word about its leadership on EV rentals, Hertz is partnering with Tampa Bay Buccaneers quarterback Tom Brady for a new "Hertz, Let's Go!" campaign.

"Hertz is changing the game when it comes to the future of mobility and has come through for me time and time again," said Brady. "Although the company has been around for over 100 years, their constant evolution, especially now, is something that is amazing to be a part of."

Hertz states it will offer a premium and differentiated rental experience for its future Tesla EVs. This includes digitized guidance to educate consumers about electric vehicles, to get them on their way more quickly, but even an expedited EV rental booking process through the Hertz mobile app.

As the first U.S. car rental service to introduce EVs to its rental fleet as far back as 2011, Hertz has long set a standard of low-carbon mobility, and this latest announcement is no different.