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Electric Vehicles: Driving the Decarbonisation Revolution Amid Challenges

Electric vehicles (EVs) are at the heart of the global push toward decarbonisation. Passenger cars and vans alone contribute to a staggering 75% of global transport emissions, accounting for 10% of total global energy-related CO2 emissions. With rising populations and increasing wealth in developing nations, these numbers are only expected to climb. EVs offer a powerful solution—but the road to full-scale adoption is fraught with challenges, from grid capabilities to sustainable mineral sourcing.

EVs Slash Emissions, But More Work is Needed

Switching from internal combustion engine (ICE) vehicles to EVs dramatically reduces greenhouse gas emissions across the vehicle’s lifecycle—manufacturing, operation, and disposal. Studies show that an EV’s lifecycle emissions are about 50% lower than those of a comparable ICE vehicle. However, there are three key areas that need improvement to further enhance EV sustainability:

1. Tackling Start and End-of-Life Emissions

Steel and aluminum make up a significant portion of a vehicle’s weight, but their production is energy-intensive. Currently, recycled aluminum and steel fail to meet automotive-grade standards, limiting their use in EV production. The development of low-emission materials and robust circular economy models is crucial to reducing emissions in vehicle manufacturing and disposal.

2. Responsible Sourcing of Critical Minerals

Batteries—EVs’ core power source—depend on minerals like lithium, cobalt, and nickel. However, 70% of the world's cobalt supply comes from the Democratic Republic of the Congo, where mining is often linked to environmental degradation and human rights concerns. Ensuring ethical sourcing and sustainable mining practices is key to mitigating supply chain risks and environmental impacts.

3. Lowering Energy Consumption in Use

A staggering 55% of an EV’s total emissions occur during its operational phase. While improvements in vehicle aerodynamics, battery efficiency, and weight reduction help, the most critical factor is a greener electricity grid. Without a transition to low-carbon energy sources, EVs will still contribute to emissions, albeit at lower levels than ICE vehicles.

Is the Electricity Grid Ready for Mass EV Adoption?

A common concern is that mass EV charging could overwhelm electricity grids, but the reality is more nuanced. Most EV charging happens overnight, when electricity demand is lower, reducing the risk of grid overload.

To further ease the strain, utilities are implementing smart charging solutions, which optimize charging schedules based on grid demand. Additionally, dynamic pricing models—where charging is cheaper during off-peak hours—are encouraging smarter energy use. However, significant investments are needed to expand and modernize electricity grids to accommodate the broader shift to electrification across industries and residential sectors.

A Managed Transition: The Path Forward

EVs are an essential pillar in the fight against climate change, but their success hinges on a well-managed transition. Sustainable manufacturing, ethical resource extraction, and grid modernization are all critical to ensuring EVs deliver on their promise of deep decarbonisation.

As the industry evolves, innovations in EV battery recycling will further enhance sustainability—stay tuned for our next blog post, where we’ll dive into the future of battery reuse and recycling!

 

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