Electric cars are hitting the mainstream in the EU. According to the European Federation for Transport and Environment has suggested that the EVs will hit their ‘tipping point’ in the EU by the end of this year. The concerns about the air quality as well as climate change have pushed both individuals and companies to shift to EVs. The government has also taken initiatives in targeting CO2 emissions reduction, and the new laws regarding this have urged the production of EVs.
The European EV targets
There is an EV surge across Europe from the year 2019 to 2025, as suggested by a report conducted in 2019, which analysed the production of EV cars and batteries across Europe. The study also examined the expectations of the EV car market regarding the EV models and the strategies of the car making companies and their production strategies to regulate whether the EV commitment is enough to meet the CO2 emission reduction goals.
Predictions have revealed that the car manufacturers are ready to launch and offer electric vehicles on a large scale. In 2019, the European EV market just offered 100 EV models, which doubled to over 200 models in just a year.
Presently, 27% of the total carbon emissions of the EU are produced by the transportation sector. According to the Paris Agreement 2016, the transport emissions of the EU must be reduced to zero by 2025. According to the EU government, EV production and adoption are seen as the ultimate way of solving this problem. The current EV market share is 2.5%, while the EU must try to increase it to 5-7% to meet its latest CO2 standards.
The EV production in the EU is driven so much as the carmakers will need to rely on the electric cars for compliance and would get an ROI, keeping the sales in the EU itself. The export revenue isn’t expected to go high because of the minimal charging infrastructure in the countries outside the EU. Major carmakers like BW, Volkswagen, and Daimler have decided to keep their focus on electric mobility.
Locations of EV and Battery Production in Europe
The production of EV and Battery production will majorly be based in Western Europe, including Germany, Italy, Spain, France, as well as the Czech Republic, Hungary, and Slovakia.
Among the most prominent car manufacturers that are part of this initiative are Volkswagen, Daimler, Renault-Nissan, and PSA. These four western Europe countries, along with the UK, are the biggest EV markets currently and are expected to become the largest EV markets in the future.
Presently, there is a serious shortage of battery supply due to the wrong estimations of the popularity of electric vehicles. Dozens of Lithium-ion battery production factories are expected to start selling online. This will likely help to meet the battery needs by the mid-2020s. Although the manufacturers have to import batteries up to 2023, the battery industry is expected to produce up to 120,000 jobs in the EU by 2023 and up to 250,000 jobs by 2028.
EU Standards for the Sales of EVs
According to the EU standards, 2.3 million Electric vehicles must be sold in the EU by 2025 and at least 5 million by 2030, which is around 15% of the total car sales. EVs are definitely the future of transportation in the EU as the EU seems to be very committed to the idea of the electrification of their cars to make their transport greener.
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