Hitting the EV Inflection Point
Bloomberg NEF (2021) Hitting the EV Inflection Point. Transport & Environment.
Although electric vehicles (EVs) have been on the horizon for many years, the pace of change appears to be increasing. Over 3 million passenger-carrying electric vehicles were sold in 2020, an increase of 47% on 2019.
This Bloomberg New Energy Finance (BNEF) analysis finds that it is possible for the EU to shift to 100% electric car and van sales by 2035, but that the right policies are needed to support this transition. As the report makes clear, looming CO2 emissions targets are likely to push governments to incentivise EVs, promoting rapid rollout and continuing refinement of the technology.
Although EV adoption does undeniably make environmental sense, high manufacturing costs must be overcome for EVs to make financial sense on a mass scale. The report finds that the point of price parity between internal combustion vehicles and EVs is estimated to be reached between 2025 and 2027. Past that tipping point, EVs will be just as accessible to consumers. For this to occur, though, the resourcing of raw materials and technological innovation must be prioritised.
The full report can be found here.