Technology report
Securing Clean Energy Technology Supply Chains
Electric vehicles
With over 9% of global car sales, the electric car fleet is expanding quickly. Ambitious policy announcements have been critical in stimulating the electric mobility transition in major vehicle markets.
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Policies have major influences on the development of electric mobility. Policy approaches to promote the deployment of EVs typically start with a vision statement and a set of targets. An initial step is the adoption of electric vehicle and charging standards.
Economic incentives and regulatory measures are often coupled with other policies that increase the value proposition of EVs. Such policies often aim to harness the multiple co-benefits arising from greater electrification of transport, most prominently energy diversification in a sector that is 90% dependent on oil products and the reduction of local pollutant and GHG emissions. Measures that provide crucial incentives to scale up the availability of vehicles with low and zero tailpipe emissions include fuel economy standards, zero-emission vehicle mandates and the rise in the ambition of public procurement programmes.
Regulatory measures related to charging infrastructure include minimum requirements to ensure "EV readiness" in new or refurbished buildings and parking lots, deployment of publicly accessible chargers in cities and on highway networks, and are complemented by requirements regarding inter-operability and minimum availability levels for publicly accessible charging infrastructure.
Economic incentives and regulatory measures are often coupled with other policies that increase the value proposition of EVs. Such policies often aim to harness the multiple co-benefits arising from greater electrification of transport, most prominently energy diversification in a sector that is 90% dependent on oil products and the reduction of local pollutant and GHG emissions. Measures that provide crucial incentives to scale up the availability of vehicles with low and zero tailpipe emissions include fuel economy standards, zero-emission vehicle mandates and the rise in the ambition of public procurement programmes.
Regulatory measures related to charging infrastructure include minimum requirements to ensure "EV readiness" in new or refurbished buildings and parking lots, deployment of publicly accessible chargers in cities and on highway networks, and are complemented by requirements regarding inter-operability and minimum availability levels for publicly accessible charging infrastructure.
Last updated May 23, 2022
Key findings
Global electric car stock, 2010-2021
OpenElectric car sales are accelerating, with China and Europe setting new records
Sales of electric cars reached another record high in 2021 despite the Covid-19 pandemic and supply chain challenges, including semiconductor chip shortages. Looking back, about 120 000 electric cars were sold worldwide in 2012. In 2021, that many were sold in a week.
EV markets are expanding quickly. Electric car sales accounted for 9% of the global car market in 2021 – four-times their market share in 2019. All the net growth in global car sales in 2021 came from electric cars. Sales were highest in China, where they tripled relative to 2020 to 3.3 million after several years of relative stagnation, and in Europe, where they increased by two-thirds year-on-year to 2.3 million. Together, China and Europe accounted for more than 85% of global electric car sales in 2021, followed by the United States (10%), where they more than doubled from 2020 to reach 630 000.
EV markets are expanding quickly. Electric car sales accounted for 9% of the global car market in 2021 – four-times their market share in 2019. All the net growth in global car sales in 2021 came from electric cars. Sales were highest in China, where they tripled relative to 2020 to 3.3 million after several years of relative stagnation, and in Europe, where they increased by two-thirds year-on-year to 2.3 million. Together, China and Europe accounted for more than 85% of global electric car sales in 2021, followed by the United States (10%), where they more than doubled from 2020 to reach 630 000.
Battery demand by region, 2015-2020
OpenBattery manufacturing has increased, but must accelerate to meet Net Zero needs
Automotive battery production reached 160 GWh in 2020 (up 33% from 2019) and the average cost of batteries declined 13% to a global average price of USD 137/kWh per battery pack. Battery production continues to be dominated by China, which holds over 70% of global cell production capacity and produces about half of all batteries for light-duty vehicles.
China also accounts for the largest share of demand at almost 80 GWh, but in 2020 Europe had the greatest increase (+110%) to reach 52 GWh. The Net Zero Scenario projects battery manufacturing scaling up rapidly, as current announced production capacity for 2030 would cover only 50% of required demand in that year. Furthermore, next-generation (i.e. solid-state) battery technologies need to become commercially available between 2025 and 2030.
China also accounts for the largest share of demand at almost 80 GWh, but in 2020 Europe had the greatest increase (+110%) to reach 52 GWh. The Net Zero Scenario projects battery manufacturing scaling up rapidly, as current announced production capacity for 2030 would cover only 50% of required demand in that year. Furthermore, next-generation (i.e. solid-state) battery technologies need to become commercially available between 2025 and 2030.
Analysis
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Global EV Data Explorer
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Policy brief on public charging infrastructure
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Our work
In operation since 1993, the HEV TCP provides a forum for global co-operation on the development and deployment of electric vehicles. It supplies objective information to support decision making, functions as a facilitator for international collaboration in pre-competitive research and demonstration projects, fosters international exchange of information, and it can promote projects and programmes for research, development, demonstration and deployment.
Related sectoral Technology Collaboration Programmes (TCP)
Events
29 Jul 2022 12:30—14:00
Unpacking the IEA Global EV Outlook 2022: The India Story
10 Jun 2022 10:00—11:30
GEVO 2022 China Launch
23 May 2022
Global EV Outlook 2022
23 May 2022
