<p>Welcome back to<strong>Critical Materials</strong>, your go-to source for the biggest stories driving the future of transportation. On the docket today: Fully automated car factories may happen sooner than you think, EV battery recycling gets supercharged, and some troubling data is out on America's car loans.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_first_1768572124"></div></div><section><div><h3><span class="arrow-holder"></span>Get Critical Materials in your inbox.</h3></div><div><p>The must-read auto and tech briefing, every weekday.</p><div><h2><span class="arrow-holder"></span>Sign up here.</h2></div></div></section><h2><span class="arrow-holder"></span>25%:‘Dark Factories’ Are Coming</h2><section>        <span class="svg-search">                                                </span>                            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Tesla Optimus humanoid robots walking" width="16" height="9" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png"/>        <div><p>Tesla wants its Optimus robots to help out in its factories.</p></div>    <div>Photo by: Tesla</div></section><p>Increasingly capable robots and artificial intelligence could fundamentally change how cars are made this decade. By 2030, there will be at least one automotive “dark factory” in the U.S. or China, experts told Automotive News.</p><div>                                                                                                    </div><p>That’s a facility where 100% of the assembly line is automated and requires no human input. Since no people are theoretically involved, such a plant can be “dark” and operate at full steam, 24/7.</p><p>Carmakers have been chasing this sci-fi concept for decades—and they aren’t slowing down.</p><section> <p>More Of The Latest EV News</p> <div> <div>                    Rivian Just Took A Crucial Step Toward R2 Deliveries This Year </div> <div>                    Ford Hybrids May Use Cutting-Edge Batteries From China's BYD: Report </div> </div> </section><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_1_1768572124"></div></div><p>Hyundai, for example, just announced plans to build 30,000 Atlas humanoid robots per year by 2028 and put them to work in its factories. Tesla is already making Optimus robots on a limited scale in California. Elon Musk has been clear about his vision here; he wants to build a robot army that can help out at Tesla factories and take on other menial labor.</p><p>I’ve been to about half a dozen car factories in the U.S. and India. From what I’ve observed, even the most advanced assembly lines today still rely heavily on human labor. Installing things like wiring harnesses and dashboards requires workers to contort at awkward angles. These are the kinds of tasks where human dexterity still outperforms machines.</p><div><div id="ads_6122441_EV_ev_us_Native_native_3_1768572124"></div></div><div><div id="ads_6122441_EV_ev_us_Native_native_2_1768572124"></div></div><p>Today’s factories are designed around human hands that can adapt and perform complex tasks in unpredictable environments. Robots simply aren’t there yet. That may change over time, but for now, humans are still the ones doing a lot of the dirty work.</p><section></section><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_2_1768572124"></div></div><p>Famously, Tesla overdid it on automation in the early days of Model 3 production and had to pivot. “Yes, excessive automation at Tesla was a mistake,” Musk tweeted in 2018. “Humans are underrated,” he added.</p><p>But that was almost a decade ago. Has technology gotten so good that humans are now overrated? We may find out in the next few years.</p><h2><span class="arrow-holder"></span>50%:Colorado Wants To Mandate EV Battery Recycling</h2><section>        <span class="svg-search">                                                </span>                            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Volkswagen Group Components Battery Recycling Plant In Salzgitter" width="16" height="9" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png"/>        <div><p>Millions of EV batteries will reach the end of their usable life in the coming years.</p></div>    </section><p>Colorado has among the highest EV adoption rates in the U.S., and now the state wants to be a leader in another area: battery recycling.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_3_1768572124"></div></div><p>Democratic lawmakers in the state legislature introduced a bill this week that would mandate the safe recycling of high-voltage lithium-ion batteries. If it becomes law, EV batteries would have to be properly recycled once vehicles reach the end of their usable life.</p><p>Automakers could handle that responsibility themselves or hand out contracts to recycling companies. The legislation would take effect on August 1, 2028.</p><p>Here’s more from Colorado Public Radio:</p><blockquote><p>By recovering materials from existing batteries, carmakers could avoid importing critical minerals, create local jobs and keep fire-prone EV batteries out of scrapyards. It’d also make future EVs even more climate-friendly, according to State Sen. Katie Wallace, a bill co-sponsor and a Democrat representing Longmont.</p><p>“Colorado is leading in electric vehicle sales, which is great for climate change, but that only matters if they can be responsibly disposed of,” Wallace said.</p></blockquote><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_4_1768572124"></div></div><p>Millions of EV batteries are expected reach their end of life in the coming years. Without clear regulations, those batteries risk ending up in landfills or junkyards—instead of having their materials reprocessed and put back into the supply chain. So, regulation that sets clear recycling standards is certainly a welcome move.</p><h2><span class="arrow-holder"></span>75%:Underwater Trade-Ins Are Soaring In The U.S.</h2><section>        <span class="svg-search">                                                </span>                            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="2025 Ford Mustang Mach-E" width="16" height="9" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png"/>        <div><p>Americans are more underwater on their car loans than ever.</p></div>    <div>Photo by: Patrick George</div></section><p>Affordability is a huge and deepening issue in the U.S. car market. And the large amount of debt many buyers are taking out to buy cars isn’t helping matters.</p><p>Nearly 30% of trade-ins toward new purchases came with negative equity in Q4 2025, according to the automotive site Edmunds, the highest rate in years. Moreover, average amount owed on those underwater trade-ins hit $7,214, the highest level Edmunds has ever recorded.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_5_1768572124"></div></div><p>That means a large number of car owners now owe significantly more on their loan than what their vehicle is worth when they trade it in toward a new purchase. So, if your Toyota Corolla is worth $20,000 currently, but you owe $27,000 on it, then you’d have $7,000 of negative equity.</p><p>The firm attributed these underwater trade-ins to a bunch of factors. High prices during the pandemic locked buyers into expensive loans from the start. People weren’t able to repay those loans at the same rate as their cars were depreciating. And when you to trade in, your outstanding debt doesn’t automatically vanish, which means this is cycle that could be very difficult to escape for some buyers.</p><p>Edmunds advises buyers to take into account all these factors before pulling the trigger on a new car. Minimize debt and take into account the true cost of owning a car—not just monthly payments—before you’re tempted to trade up for the shiny new thing.</p><h2><span class="arrow-holder"></span>100%:Will Robots Take Over Car Factories By The End Of The Decade?</h2><p>Is this just as fantastical as ever? Or is it realistic thanks to advancements in robotics and AI. Let us know what you think in the comments.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_6_1768572124"></div></div><p><em>Contact the author: Suvrat.Kothari@InsideEVs.com</em></p><section> <p>We Think You'll Enjoy...</p> <div> <div>                    China's Geely Clearly Wants To Come To The U.S. Here's How It Could Pull That Off </div> <div>                    The EV Market Was Pure Chaos In 2025. Here’s Who Won Out (And Who Lost Big) </div> <div>                    Global Plug-In Car Sales Passed 20 Million In 2025, But The U.S. Lost Steam </div> <div>                    Honda’s U.S.-Made Electric Mower Has A Bigger Battery Than Most Plug-In Hybrids </div> </div> </section><h2><span class="arrow-holder"></span></h2><p></p>                                                                                                                                                                                                                                                                                <section><p><span>We want your opinion!</span></p><div><p>What would you like to see on Insideevs.com?</p>Take our 3 minute survey.</div><p>- The InsideEVs team</p></section>                                                                                                    <div>                                <div>                                    Share this Story                                </div>                                <div>                                    <ul>                            <li>                                                                                                                        Facebook                                                    </li>                                    <li>                                                                                                                        X                                                    </li>                            <li>                                                                                                                        LinkedIn                                                    </li>                            <li>                                                                                                                        Flipboard                                                    </li>                                                    <li>                                                                                                                        Reddit                                                    </li>                            <li>                                                                                                                        WhatsApp                                                    </li>                            <li>                                                                                                                        E-Mail                                                    </li>                                                            </ul>                                </div>                                                                                                            <div>                                            <div>                                                                                                                                                                                                    <span class="top-counter-comments-label">GO TO COMMENTS</span>                                                                                                     <div>                                                        <span>(</span>                                                        <div></div>                                                        <span>)</span>                                                    </div>                                                                                            </div>                                        </div>                                                                                                </div>                                                            <div>                                    <div>                                        <span>Got a tip for us? 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<p>The automotive industry is on the brink of significant changes with the emergence of fully automated 'dark factories' expected by 2030, driven by advancements in robotics and AI. Colorado is also taking steps to lead in EV battery recycling, mandating safe recycling practices for lithium-ion batteries by 2028. Meanwhile, the U.S. faces a growing issue of underwater car loans, with nearly 30% of trade-ins in Q4 2025 having negative equity, highlighting affordability challenges in the market.</p>

'Dark' Car Factories Are Coming Sooner Than You Think