A very interesting article in Bloomberg Business outlines why Electric Vehicles are shaping the future energy mix. There are some broad implications for mining and renewables.
There are some interesting details in here (and a cool video) with projections on the cost of batteries and the amount of oil that will be displaced when EVs become more commonplace.
Some projections and facts from the article;
- The 2020’s will be the decade of the electric car
- Battery prices fell 35% in 2015
- 30% of EV costs are on the battery
- Within the next 6 years unsubsidized EVs will be as affordable as gasoline vehicles
- By 2040 EVs will account for 35% of all new vehicle sales
- Tesla, Chevy and Nissan are all developing long range EV in the $30K range
- EV’s are projected to displace 2 million barrels of oil per day by 2023
As a companion piece, the always informative Visual Capitalist published a chart highlighting the raw materials used in making a Tesla. See here. The electrification of the energy and transport sector will have major implications for the mining and renewables industries. These major shifts will increase the demand for metals and electricity. At the same time the electrification of mining through the increased use of renewables and EVs is also likely to move mining towards new business practices and technologies. It’s exciting times to be in this space.
