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Toyota was the first to really capture this market with its hybrid Prius, which launched in Japan in 1997.īy 2003, the Prius had gone from novelty to status symbol, thanks in part to a stroke of deft marketing from a California Toyota dealer. It was no accident then, just as large-scale public outcry in response to this trend was starting to build, that auto manufacturers began marketing alternative-powered vehicles that produced lower emissions by augmenting internal combustion engines with electric motors. At the same time, these pollutants created smog and local pollution, creating health problems and choking major cities.
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Studies suggest that the Earth’s temperature will rise far more than two degrees Celsius by the end of this century unless significant changes are made to global manufacturing, energy supply, and consumer practices. While estimates vary, the automotive sector is believed to contribute somewhere between 15 and 25 percent of polluting emissions, such as nitrogen oxide, particulate matter, and carbon dioxide, according to Johann Wiebe, Thomson Reuters Lead Metals Analyst.Ĭollectively, these pollutants, which are now concentrated at their highest levels in the Earth’s atmosphere in the last 650,000 years, are linked to climate change. The other two critical variables are growing environmental awareness and fast-moving political policy changes. Unlike other massive shifts in consumer preference – such as the growth of smartphones, the rise of ecommerce, or even the first automotive revolution – which were all driven almost entirely by technological innovation, technology is just one part of a three-pronged phenomenon that’s behind the EV revolution.
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In order to understand the full implications of the EV movement, it helps to look closely at what’s driving it. We also weigh the impact of the EV revolution on the metals and mining, automotive, and energy sectors highlight various legislative initiatives rolling out globally and share insights from our research teams who are working on the front lines of this transformation. In this new report, Thomson Reuters examines the knock-on effects of the growth of EVs, creating a “what-if” analysis that projects the impacts of large-scale growth in EV adoption on everything from consumer buying patterns to global energy consumption to carbon dioxide emissions. Whatever form it takes, the growth in demand for EVs will spur a surge in demand for other organic elements used in EVs and the clean energy production process, notably lithium, cobalt, and rare earths, each of which comes with its own set of environmental, economic, and geopolitical challenges. The current grid will need to evolve significantly to accommodate that growth, driving a blitz of new innovation in wind and solar power, which will ultimately shift global reliance on coal toward clean energy alternatives.īut even that transition, while certainly cleaner, is not without environmental, economic, and legislative impact. According to best estimates, growth in EV adoption could drive a 300-fold increase in electricity consumption by 2040, compared to 2016.
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But for every action to incentivize the development of clean cars and energy sources to power them, a series of reactions occur that affect everything from raw material sourcing to consumer behavior and new technology development.Īs automakers ramp up production for evermore EVs, demand on the power grid from EVs will grow exponentially. On a global basis, coal demand is down from its peak in 2014 as countries around the globe have begun to implement initiatives to curb the production of greenhouse gases, also helped by cheap natural gas and local pollution concerns. Those numbers have been trending down over the past several years, though.
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Globally, roughly 37 percent of the world’s electricity comes from power plants that burn coal. Even the Netherlands, with its iconic windmills, generates 29 percent of its electricity from coal. In China, that number jumps to two-thirds. Right now, around 30 percent of the electricity in the U.S. Wait, that parenthetical part can’t be true, can it? While it is true today that the electric vehicle (EV) market is still largely powered using the same technology that drove steam locomotives in the late 1800s, things are changing rapidly. The internal combustion engine is dead long live the battery electric vehicle (powered by lithium-ion batteries that are charged by coal-fired power plants).