The electric vehicle (EV) revolution faces a critical challenge as the low-carbon transition hinges on sufficient battery production. Potential raw material shortages loom large, threatening to disrupt the demand-supply balance. The success of this green transition necessitates addressing these supply chain concerns to ensure a seamless and sustainable future for EVs and the broader low-carbon agenda, says data and analytics company GlobalData.
The electric vehicle (EV) sector registered exponential growth during the last decade due to depleting fossil fuel reserves and growing awareness about the impact of global warming. As EVs are a viable option to replace internal combustion engine (ICE) vehicles, EV sales increased substantially in several countries despite the automotive industry facing supply chain constraints in 2020 due to the COVID-19 pandemic. Global EV sales reached 7.7 million units in 2022, up from 1.4 million units in 2018, and are anticipated to reach 51.6 million units in 2035, driven by government mandates and infrastructure investments, according to data and analytics company GlobalData.
Following the news that France has opened its first electric vehicle battery factory in Billy-Berclau in the northern region of the country, Sumit Das, senior analyst, Automotive at GlobalData, says: “France’s first EV battery gigafactory will provide a base to step up the production of batteries and electric vehicles as the European Union has set a 2035 deadline to phase out the sale of new fossil fuel cars.”
Following the news that the Canadian Federal Government and Volkswagen have agreed to invest more than $14.8bn for the construction of a battery gigafactory in Ontario, Lucy Tripathi, automotive senior analyst at GlobalData, ocomments: “Volkswagen is the second largest automaker in the world and the battery cell business is one of its new auto strategies, which will help the company in becoming a leader in low-carbon or zero-carbon emission mobility. The goal of Volkswagen is to have 80 per cent of its vehicles to be electric by 2030.
China will continue to dominate global battery electric vehicle (BEV) sales in 2023, despite an increase across all major markets, says GlobalData. However, the leading data and analytics company notes that other regions may catch up, as growth in China slows. Al Bedwell, director, global powertrain at LMC, a GlobalData company, comments: “China’s BEV growth will moderate in 2023, after a meteoric rise in 2022 of more than 100 per cent year-on-year (YoY). The country’s slowing economy and unavoidable retail price increases will dampen Chinese BEV and plug-in hybrid (PHEV) demand, though much volume will still be added.”
Electric vehicles are expected to account for more than 33 per cent of new car sales worldwide by 2031, according to new research compiled by GlobalData.
Electric vehicle (EV) sales have reached record numbers in recent years, with annual sales projected to increase ten-fold in the next 15 years, especially in China and Europe, due to favourable policies and auto manufacturer commitments, according to GlobalData.
The battery industry is set to be one of the most significant over the next 10 years, according to GlobalData, which predicts that revenues will exceed $168 billion by 2030. However, the leading data and analytics company notes that extraction of raw materials will not meet soaring demand unless capital markets change course in the face of ESG (Environmental, Social and Governance) pressures and invest heavily in new mines.
Following the news that China vehicle sales fell by 11.7 per cent in March after two months of increase, Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view: “In contrast to a positive jump of 18.7 per cent in February, vehicle sales in China fell by 11.7 per cent to 2.2 million units in March 2022, following the production and supply disruptions caused by the new wave of the COVID-19 which led to strict lockdowns across regions in the country.”
Despite the Covid-19 pandemic causing a decline in the global auto industry, sales of electric vehicles (EVs) grew 40.9 per cent year-on-year (YOY) and accounted for 4 per cent of car sales in 2020, according to data and analytics company GlobalData.
Following the news from the Association of Indonesia Automotive Industries (GAIKINDO) that automotive exports from the country declined by 30.1 per cent, Bakar Sadik Agwan, senior automotive consulting analyst at GlobalData, says: “Indonesia’s automotive output tumbled significantly due to the COVID-19 and troubled economic environment in 2020. Production, domestic sales, exports and imports all were significantly below the initial expected levels. Indonesia, which is the second largest vehicle manufacturer in the Southeast Asia, depends heavily on exports, making it a key variable for the domestic automotive economy.
Ford is the latest car manufacturer to embrace an comprehensive electrification strategy. As Tyrepress reported earlier in the week, Ford is transforming its Cologne factory into a hub for electric car manufacturing, with the aim of making all its passenger cars sold in Europe zero emissions capable by mid-2026.
GlobalData says that the combined sales of new vehicles in Southeast Asia’s six largest markets (Thailand, Indonesia, Malaysia, the Philippines, Vietnam, Singapore) are estimated to have declined by 28.5 per cent to 2,468,613 units in 2020.
Ford posted better-than-expected figures for the third quarter, recording a net income of $2.4 billion. However, David Leggett, Automotive Analyst at GlobalData, suggested that the company could be facing tough times ahead. Says Leggett: “Like several other carmakers, Ford is getting a boost from higher demand – especially in the US – after the pandemic-induced low points earlier this year. High margin trucks are selling very well and there are signs of a turnaround, too, in China which has been a disaster area for Ford in recent years.”