Image: Car photo created by frimufilms – www.freepik.com“>Frimufilms via Freepik

Dramatic improvements in automotive technology and the growth of the electric vehicle (EV) market have introduced a wide range of opportunities for the future of the global energy industry, representing one of the most impactful strategies. to achieve global sustainability goals. Electrification of the transportation sector is expected to serve as a primary focus for technological developments, with significant gains expected in the coming decades, as the success of the electric vehicle industry leads to increased development of new technologies and the transition to low consumption. carbon in the global economy.

Examining the success of the electric vehicle industry and its broader implications for the energy industry, the Rystad Talks Industry webinar, held on Tuesday, February 1, presented the latest market insights and its wider implications for the industry as a whole, with Marius Kluge Foss, Senior Vice President of Global Energy Systems at Rystad Energy, stating: “If we look at the development over the past two years in terms of electric vehicle sales, the market has exploded, especially in 2021. We expect this to continue into next year. .”

Electric vehicles are seen as a key development in the transition to a low-carbon economy, and as battery costs fall, demand for lithium iron phosphate batteries is expected to increase by more than 110% by the end of 2022, with China maintaining its leading position. the leading developer of EV batteries in the global market.

“Last year, we saw phenomenal growth in demand for battery materials. China is still at the epicenter of electric vehicles and electric vehicle batteries, holding a dominant position in processing capabilities,” said said Susan Zou, principal analyst at Rystad Energy, adding, “Any trend in China has an impact on the global market, and among all battery feedstocks, demand for lithium is in the spotlight.

Although China has been driving the global pace of electric vehicle production and development, other countries, such as Norway, have continued to push towards zero-emission vehicle goals. Breakthrough new technologies, such as EV battery swapping innovations, are reducing the cost of EVs, with multinational automaker NIO Norway introducing the first battery swap station in the Scandinavian country in January 2022, with plans to introduce another 20 facilities nationwide. the year.

“This is the first power plant outside of China. In Europe, most of our customers still use DC chargers, but in Norway we want to be part of battery development,” said Marius Hayler, Managing Director of NIO Norway, adding that although demand is very high , the supply chain has restricted growth.

Despite a limited supply of critical components used to make batteries for electric vehicles, Dennis Nobelius, COO of Swedish automotive brand Polestar, also noted the increase in demand, saying: “We are working with several partners to improve the robustness of supply. And on top of that, we have a host of start-ups that we interact with.

Following its strong performance in 2021 despite the continued constraints of global chip shortages and rising battery feedstock sourcing costs, Rystad Energy forecast a global market share increase of 12.8% in 2022 , compared to 10.1% in 2021.

“Last year, we surpassed 50,000 electric cars globally with 50% of all investment over the next four years, or approximately $1.9 billion, planned to invest in electric vehicles,” he said. said Elin Rosnes Sinervo, Director of Audi Norway, concluding: “I truly believe that all transport will move in a more sustainable direction.