According to Bloomberg New Energy Finance´s (BNEF) new study the electric car markets will grow faster than earlier expected. The forecast shows EV sales worldwide growing steadily in the next few years, from the record 700,000 seen last year to 3 million by 2021.
The general finding is that EVs will not just have lower lifetime costs, but will also be cheaper to buy than internal combustion engine cars in most countries by 2025-29. This is because of tumbling battery prises.
Electric vehicles will make up the majority of new car sales worldwide by 2040, and account for 33% of all the light-duty vehicles on the road, according to the study.
It also confirms the recent announcements from car manufacturers related to electric cars. For example Volvo released their commitment to electric cars a couple of weeks ago saying that they will focus on hybrid or totally electric cars from 2019 onwards. The first totally electric Volvo-cars will be build in China, but later on also in Europe and the US.
Picture: Robots in Tesla factory. The new Tesla Model 3 was ready from the production line in California on Monday this week.
By 2040, EVs will be displacing 8 million barrels of transport fuel per day and adding 5% to global electricity consumption.
According to the study, since 2010, lithium-ion battery prices have fallen 73% per kWh. Manufacturing improvements and more than a doubling in battery energy density are set to cause a further fall of more than 70% by 2030.