IEA suggests 600 million electric vehicles needed to limit global temperature rises
The International Energy Agency (IEA) has suggested that there 600 million electric cars are required to be in use by 2040 in order to limit temperature increases below 2°C.
According to its 'Global EV Outlook 2017', various statistics and analysis have indicated an exponential growth in sales of electric cars, which reached nearly two million last year.
Until 2015, the companies have sold one million electric cars and within a span of just over one year, the sales have doubled reaching two million EVs by now.
The majority of EV cars were sold in China. Demand for the EVs in the Chinese market is reported to be higher in comparison to the US and European markets.
Currently, there are more than 70 models of electric cars on sale in China.
The report suggested that there are nearly two million electric bikes, four million small low-speed EVs and 350,000 electric buses in China.
Warren Buffet-backed BYD that makes electric buses is now involved in electric vehicles production and is reported to be one of the major manufacturers of EVs in the world.
Demand for electric cars in Norway has also increased.
The report indicated that although there has been an increase in the sale of EVs, this growth is confined to only ten countries across the globe.
Currently, electric vehicles represent only 0.2% of all cars in the world.
International Lithium executive chairman Kirill Klip suggested that the cost of the lithium batteries is decreasing very quickly, which is an indication that the demand for fully electric cars will be increased across the globe.
Tesla is planning to start the mass production of Tesla Model 3 that will be equipped with 65kWh lithium battery and provides a range of more than 200 miles.
Klip further explained that one Tesla Model 3 battery uses around 60kg of lithium carbonate equivalent (LCE), and it will require 36 million tonnes of LCE to be produced by 2040 to put this IEA plan into life.
In future, all electric cars will be equipped with internal combustion engines (ICE), with demand for lithium is expected to increase significantly as a result.
According to Klip, lithium supply chains will be tested this year by Tesla Gigafactory, which will be starting lithium batteries mass production for Model 3, and also by few mega-factories that will be built in China in the near future.
Ganfeng Lithium of China is reported to have begun development of vertically integrated businesses to supply critical material to this Energy rEVolution.