Trio of economic forces could boost electric vehicles, WoodMac says

WASHINGTON, Aug 13 (Reuters) - A trio ‌of emerging ​economic forces ​could boost global production of electric vehicles with implications for oil, power and metal markets, a report from Wood Mackenzie said ‌on Thursday.

The forces are oil supply shocks from wars in petroleum-producing countries ⁠Russia and Iran pushing governments to speed investment in supply chains, high fuel prices prompting ‌consumers to switch to EVs, ‌and technological innovation, the report found.

• China is making rapid progress on battery technologies, including 5-minute charging and both sodium-ion batteries and lithium iron phosphate ​batteries. Western countries could use government support to boost innovation, the report said.

• Policymakers around the world may find that increased licensing of Chinese ⁠EV technology is needed to boost resilience to oil prices as well as ramping up domestic supply ​chains.

• Global oil demand could fall to 99 million barrels per day in 2040, from above 100 million bpd today.

• Abundant ​oil supplies in the U.S. keep its ‌EV market share rising from 3% today to only 20% by 2040, WoodMac forecast. In Europe, which has high oil ⁠import dependence, EV market share should rise from 3% in 2025 to 35% by 2040.

• "There's this tidal wave of EV innovation outside of the US, and in this scenario, ⁠the United States has to take electrification of transport seriously and fund new EV supply ​chains, new EV manufacturing, really to stay competitive with EV imports from other countries and to stay competitive abroad," David Brown, one of the report's authors, told Reuters.

• Supply ‌of minerals globally could support 50% growth in global EVs by 2040. The challenge is how quickly that new supply ‌can be delivered. The world needs another $45 billion in investment in metals over ⁠the next decade. Copper is the ‌critical bottleneck.

• Electric grids ​and regulators need to expand "managed charging" to shift EV charging to periods when there's ample power supply.

(Reporting by Timothy Gardner;Editing by ‌Elaine Hardcastle)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Swedish police probe online networks after teenage girl killed in school sword attack
• Multiple deaths after UK police car crash, police say
• From science fair to strategic showcase: a decade of China’s robot games