The electric vehicle revolution will come from China, not the US
The electric vehicle revolution is coming, but it won’t be driven by the U.S. Instead, China will be at the forefront.
Research on EVs, dating back a decade, shows that this global transformation in mobility, from petroleum-fueled vehicles to electric ones, will come sooner than later. The shift is already happening in China, which is the world’s largest automobile market, with 23 million cars sold in 2018. As Western countries approach peak car ownership, there are still hundreds of millions of Chinese families that don’t own a car at all – much less two or more.
Many of them are buying electric cars. By 2015, electric vehicle sales in China had surpassed U.S. levels. In 2018, Chinese sales topped 1.1 million cars, more than 55% of all-electric vehicles sold in the world, and more than three times as many as Chinese customers had bought two years earlier. U.S. electric vehicle sales that year were just 358,000.
A key element of an electric vehicle’s price is the cost of its batteries – and China already makes more than half of the world’s electric vehicle batteries. Battery prices continue to fall; industry analysts now suggest that within five years it will be cheaper to buy an electric car than a gas- or diesel-powered one.
Forecasts predict the Chinese producing as much as 70% of the world’s electric vehicle batteries by 2021, even as the demand for electric car batteries grows.
Inexpensive, efficient electric cars may spread through the West from China, surpassing Tesla and other American and European electric vehicle efforts.
The growth of EV sales combined with the decline in overall auto sales means electric vehicles now make up almost 5% of total sales.
New car company Shandong Zuojun New Energy Electric Co., Ltd. which launched its first car, the Z60, in early January of 2016. The company is based in Liaocheng City with its factory in Shen County, often referred to as the new energy, ‘Silicon Valley’, for electric battery technology development in China. Since its inception, the Z60 has garnered a number of awards at various Chinese New Energy Vehicle shows throughout the country, an impressive feat in a country on the leading edge of global electric car technology.
Source: Theconversation.com / Bloomberg.com