Electric vehicle market will multiply by 20 in the next 10 years

The electric car market will explode in the coming years, driven by new regulations in developed countries.

According to consultancy Statista, the global number of battery electric vehicles reached 6.8 million units in 2020, up from 1.2 million units in 2016 and projected to reach 51.7 million in 2025.

Then, by 2030, his forecast is for those vehicles in circulation to reach 144.3 million, almost tripling in five years.

Within this framework, the US Congress plans to vote on a bill that would expand subsidies for the purchase of electric vehicles, but violating the Treaty between Mexico, the United States and Canada (T-MEC) by conditioning them to a certain level of national content.

Recently, Japan and South Korea have seen high levels of lithium-ion battery exports as automotive companies increase battery consumption to boost sales of all-electric vehicles, the American Battery Metals company noted.

China has the most EVs on the road, but European and American automakers are committed to significantly increasing EV sales by 2025.

According to Goldman Sachs, 25% of cars sold will have electric motors by 2025, up from 5% today.

Just a 1% increase in EVs coming to market could increase demand for lithium by about half of current lithium production today.

The most prominent business case is the mile-long Tesla factory that began producing powerful lithium-ion batteries in January 2017 with its partner Panasonic.

The factory will supply batteries for the 500,000 cars Tesla hopes to produce by the end of the decade, as well as power homes.

Additionally, Chrysler, Dodge, Ford, GM, BMW, Volkswagen, Mercedes-Benz, Mitsubishi, Nissan, Saturn, Tesla, and Toyota have announced plans to build cars with lithium-ion batteries.

According to American Battery Metals, after Tesla launched the Model 3 in July 2017, there have been more than 500,000 reservations for the vehicle and production is starting two years ahead of schedule.

Statista described the growing demand for electric cars in markets like Germany and Norway as triggered by government incentives including subsidies, toll exemptions and parking fees. Already seven out of 10 cars sold in Norway are plug-in electric vehicles.

As other examples of the trend, according to the Tata Motors company, the UK government recently announced that the phase-out date for the sale of new gasoline and diesel cars and vans was brought forward to 2030 from the previous date of 2035, while the governments of other countries, including Norway and the Netherlands, have announced targets to ban new gasoline and diesel cars.

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