Electric Vehicles: Driving Change and Charging Greener Future

Electric vehicles (EVs) are not just a trend—they are at the heart of a larger transformation in the automotive industry, energy sector, and global climate policy. As the London EV Show kicks off next week November 26–28 (small reminder to check the events page) , it's the perfect time to dive into the topic here on doESGood.

Let's kick things off with some electrifying facts:

• Global passenger EV sales are set to rise from 13.9 million in 2023 to over 30 million in 2027, accounting for 33% of total global sales by that year.

• According to EY’s latest Mobility Consumer Index, 23% of UK consumers are eyeing a fully electric vehicle as their next purchase, up from 19% in 2023 and just 6% four years ago.

• The domestic transport sector accounted for approximately 28% of the UK's greenhouse gas emissions in 2022, primarily from petrol and diesel use in road vehicles.

• Lithium-ion battery prices have dropped by 90% over the past decade, making EVs more accessible.

• EVs are expected to displace 4 million barrels of oil per day by 2027, significantly reducing road fuel demand.

WHY ARE EV's DRIVING CHANGE?

The most compelling reason for the shift to electric vehicles is their potential to significantly reduce greenhouse gas emissions. Traditional internal combustion engine (ICE) vehicles are major contributors to air pollution and climate change. They emit carbon dioxide (CO2), nitrogen oxides, and particulate matter, all of which contribute to global warming and health issues. In contrast, EVs produce zero tailpipe emissions, making them a key player in the effort to decarbonise the transport sector.

Did you know that the transport industry contributes to 21% of global carbon emissions? That’s why the shift to EVs isn’t just a choice; it’s a necessity. From cleaner air in cities to meeting ambitious climate targets set by international agreements like the Paris Agreement, EVs are steering us toward a greener, healthier future.

INNOVATIONS DRIVING THE EV INDUSTRY FORWARD 

🔋 Battery Technology

EV batteries have seen dramatic improvements in efficiency, energy density, and cost. Over the past decade, the cost of lithium-ion batteries has dropped by more than 90%, making electric cars more affordable for consumers. This progress continues, with new battery chemistries like lithium-iron-phosphate (LFP) gaining popularity, offering even more cost-effective and environmentally friendly alternatives to traditional lithium-ion batteries.

♻️ EV Battery Recycling

Did you know only 5% of EV batteries around the world are currently being recycled? Recycling presents significant challenges, despite up to 95% of their material being recoverable. The process is both costly and complex, requiring specialised facilities to safely dismantle and process batteries that contain hazardous yet valuable components like lithium, cobalt, and nickel. This complexity, coupled with limited recycling infrastructure and the energy-intensive nature of the process, often makes recycling less economically viable than sourcing new raw materials.

Companies like Nissan are leading the charge. Early this year Nissan announced a partnership with Altilium, a UK-based clean technology group, with the goals to develop "closed-loop" battery recycling systems. These efforts are crucial for making EVs even more sustainable.

🔄 Second-life Battery Market

EV batteries last around 10-20 years (or 100,000 miles) but they’ll still have around 75% of their original capacity remaining. This makes them a valuable resource. Second-use batteries are finding second lives in renewable energy storage systems, helping stabilise power grids and store solar or wind energy.

The second-life battery market is still in its infancy, but several companies are already piloting projects.

For instance, Connected Energy and Volvo Group launched a partnership to repurpose second-life batteries for energy storage, proving that the future of EV batteries extends far beyond the road.

🌐 Vehicle-to-Grid (V2G) Technology

Imagine your EV not just as a mode of transport, but as a powerhouse contributing to a greener energy future. That’s the magic of Vehicle-to-Grid (V2G) technology. By enabling EVs to send electricity back to the grid during peak hours, V2G transforms cars into mobile energy hubs, saving owners money and powering homes or communities when demand spikes. Companies like Octopus Energy are leading this charge, offering smart tariffs that guarantee free or reduced-cost charging. This isn’t just about driving innovation—it’s about creating a cleaner, more self-reliant energy ecosystem where every EV on the road can play a role in stabilising the grid and boosting the adoption of renewable energy. The benefits of bidirectional charging are not talked about enough.

Bidirectional functionality is not yet standard across the industry, but automakers are rapidly incorporating it into their offerings to meet growing demand and stay ahead of potential regulatory requirements. BMW, Volvo, and Porsche are all actively testing this feature, while Tesla has announced plans to enable bidirectional capability in all its models by 2025.

📢 Policy support

Governments worldwide are driving the shift to electric mobility through a range of policies and incentives. In the EU, several countries have set ambitious targets to phase out fossil fuel-powered vehicles, with some aiming for a full ban on internal combustion engine vehicles by 2035. The same applies in the UK together with the Zero Emissions Vehicle (ZEV) Mandate that requires automakers to ensure at least 22% of their sales are EVs, with the target rising to 28% in 2025. In case of non-compliance manufacturers face substantial penalties of £15,000 per vehicle.

These policies not only incentivise consumers to switch to EVs but also encourage automakers to accelerate their transition to electric models. In fact, major automakers like for example Jaguar Land Rover (JLR) stopped selling new Jaguar cars in the UK ahead of the relaunch as an electric-only brand in 2026.

Infrastructure is growing too: According to Zap-Map at the end of October 2024, there were 71,459 electric vehicle charging points across the UK, across 36,060 charging locations. While urban areas may have a growing number of charging points, rural and less developed regions often lack sufficient infrastructure. The UK government is investing over £2 billion to expand the EV charging infrastructure and incentivise the adoption of zero-emission vehicles.

JOIN THE CONVERSATION

If you could change one thing to speed up EV adoption, what would it be? Share your ideas in the comments!

I also recently listened to the "The World Electric Vehicles May Create" episode of the ESG now podcast, and it’s very insightful! Highly recommend checking it out—Click here to listen.

Check out London EV Show Event