Abstract:

Auto manufacturers have announced more than $150 billion in investments to achieve collective production targets of more than 13 million electric vehicles annually around 2025. This is likely be more than 10% of global light-duty vehicle sales, based on publicly announced plans. To achieve this level of electric vehicle growth, the industry will need to expand battery production by an order of magnitude. This growth amounts to a massive opportunity for technology innovation and economic growth. With such major electric vehicle and battery investments being made over the next several years, it is a critical time to assess where these investments are likely to go based on the market and policy landscape. This report includes a detailed assessment of light-duty electric vehicle sales and manufacturing, including the associated battery production and its suppliers. The authors analyze where electric vehicle models are being assembled and where their battery cells are being produced, and compare that to where the consumer markets are developing. They also investigate underlying policies that have supported the industrial and market developments to date. In so doing, this work looks to assess the status of the major electric vehicle markets through 2017, while also identifying policy opportunities for accelerating the transition to electric. Some regions have seen greater market growth in electric vehicles, whereas others have seen greater industrial production. Electric vehicle sales and production are largely concentrated in China, Europe, Japan, and the United States. Also shown are Japan and South Korea, major battery cell producers that account for about half of the cumulative electric vehicle battery production.