Abstract:

European carmakers have jointly committed more than €130 billion to electrification in the coming years. This is a positive development, but if the rollout of electric vehicles is not properly managed – via uncontrolled grid connections or unsustainable use and sourcing of materials – challenges will arise, reducing the environmental benefits and creating new problems. The report estimates the expected uptake of EVs and the volumes of batteries available for grid services during the vehicle life, as well as second-life applications and recycling at the end of vehicle life; studies the impact of EV integration on EU grids and renewables penetration, with case studies of France, Spain, Italy and the UK;analyses the economics around innovative second-life applications of batteries and presents a number of promising case studies; and assesses challenges and opportunities around battery recycling, as well as what is needed to spur circular economy markets in Europe. It provides additional analysis and policy recommendations in view of the new European Commission and upcoming legislative opportunities.