The global electric vehicle (EV) market is experiencing significant growth, driven by a number of factors, including advances in battery technology, increased investment in charging infrastructure and government incentives.The EV market size is expected to grow from USD 396.4 billion in 2024 to USD 620.3 billion in 2030*, at a compound annual growth rate (CAGR) of 7.7% during this period.

*Source: Electric Vehicle Market Size, Share, Growth, Trends & Analysis by 2030. https://www.marketsandmarkets.com/Market-Reports/electric-vehicle-market-209371461.html

Advances in battery technology, such as increased energy density and reduced costs, are making electric vehicles increasingly attractive to consumers. In addition, the expansion of fast charging networks and government incentives to promote EV adoption are accelerating this transition.

The Asia-Pacific region is positioned as a leader in this market, driven by strong growth in China and India's increasing investment in battery production and charging infrastructure. Europe stands out for its commitment to electrification, backed by ambitious policies and a favourable regulatory framework.

However, the EV market still faces challenges such as limited battery life and high replacement costs. In addition, the lack of a universal standard for chargers may hinder widespread adoption. Nevertheless, these barriers are creating opportunities for innovation, such as the development of wireless charging technologies and the use of EVs in commercial fleets.

In conclusion, the future of mobility seems to be increasingly linked to electrification. Technological advances, government policies and growing environmental awareness are driving a profound transformation in the automotive industry. While challenges remain, the outlook for the electric vehicle market is very promising.

What types of batteries are most common today and how is the performance of electric vehicles expected to improve?

The most common type of battery for electric vehicles today is the lithium-ion battery. In recent years, these batteries have undergone significant improvements, especially in their energy density, which allows them to store more energy without increasing their size or weight. This has enabled the development of electric cars with longer range, addressing one of the main concerns of potential buyers.

Despite their popularity, lithium-ion batteries also present some challenges. Their lifespan is limited and replacement costs can be high. In addition, battery degradation can reduce driving range, leading to so-called "range anxiety" for some users, especially those who need to make long journeys.

While lithium-ion batteries are the most common today, other battery technologies are being developed, such as solid-state batteries, which promise greater safety and even higher energy densities. Companies such as QuantumScape and Toyota are working on the development of solid-state batteries and their adoption is expected to increase in the coming years. Toyota, for example, aims to have this technology ready for commercial use between 2027 and 2028, with a solid-state battery that could offer a range of 1,000 km and a charging time of 10 minutes.

Sources say that while lithium-ion batteries are currently the most common in electric vehicles, there are other battery technologies under development with the aim of improving the performance of these vehicles.

Solid state batteries​: This technology uses solid electrolytes instead of liquids, resulting in significant improvements in safety parameters and higher energy density. Not subject to overheating like conventional types, solid-state batteries promise longer life and faster charging times.

In addition to solid-state batteries, sources also mention other technologies that could contribute to improving the performance of electric vehicles:

• Modern engine design: The development of more efficient engines, in combination with improved batteries, allows for increased energy density, which translates into longer driving range and reduced "range anxiety".
• Lightweight materials and improved aerodynamics​: The use of lightweight materials in vehicle construction and optimised aerodynamics also contribute to increasing the efficiency of electric vehicles, making them more attractive to consumers.

In summary, solid-state batteries are emerging as a promising alternative to lithium-ion batteries, with the potential to significantly improve the performance of electric vehicles. However, advances are also being made in other areas, such as motor design and aerodynamics, which will complement improvements in battery technology.

What are some of the main obstacles facing companies seeking to produce electric vehicles?

Companies seeking to produce electric vehicles face a number of obstacles:

• Cost of battery and replacement: Battery life and the cost of buying a new battery are an issue. Low driving range due to battery degradation is also an issue for many people who wish to drive an electric car. The cost of electric vehicle batteries can run into tens of thousands of dollars, which can deter many first-time buyers and raise concerns about the long-term affordability of electric cars compared to petrol cars.
• Lack of standardisation in charging infrastructure: Electric vehicle charging stations may not operate at all voltages. AC charging stations deliver 120V AC voltage through Level 1 charging stations and 208/240V AC through Level 2 charging stations, while DC charging stations provide fast charging at 480V AC. Fast charging is not standardised in different countries. Japan uses CHAdeMO; Europe, the United States and Korea use CCS; and China uses GB/T. India has mandated the installation of both CHAdeMO and CCS, which increases the cost of installing charging stations. Tesla has high-performance Superchargers available only for Tesla cars, limiting compatibility.
• Availability of components​: The ultimate goal of original equipment manufacturers (OEMs) is to ensure a reliable supply of essential components within battery pack/cell manufacturing by moving up the value chain. Vertical integration provides cost benefits and allows better control over quality and battery technology innovation, but can be difficult to achieve.

While these are some of the main obstacles, the EV market is also driven by factors such as advances in battery technology, investments in charging infrastructure and government incentives. Improvements in the energy density of lithium-ion batteries have resulted in longer-range electric vehicles that are cheaper. Architectural advances, such as 800V E/E systems, have also improved vehicle performance by reducing charging time.
 

Which metals will be key to enabling mass adoption of these vehicles globally?