Electric Vehicle Market Penetration

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Commodity Insights

Listen to Rob Gray, Chief Commodities Strategist, Resource Capital Funds, review how Electric Vehicle Market Penetration is exceeding expectations and driving demand for battery metals and minerals. Filmed during RCF’s September 2022 Annual Meeting.

So, auto sales were approximately 95 million units per year in the 2017-2018 period. The decline in auto sales and production started before COVID. Part of that was related to the trade war and a few other things. But we’ve seen some early signs of life coming back and we’re working through some of the supply chain issues with auto production, we’re seeing that around the world.

So, autos are on their way back. But what’s interesting is when we look at electric vehicles, we’re sitting at a 13% penetration rate. And what’s really interesting is if we wind the clock back a couple years ago in that 2017-2018 year period, we were expecting a 10% penetration rate by the year 2025. So, we’ve just hit and exceeded 2025 levels of auto sales last year, in electric vehicles. Now, that’s largely been driven by China and Europe.

2020 was the year that a number of OEM’s finally had the EV of choice out in the market, Volkswagen, BMW, even Ford, Chevrolet and others. The models are there now and you can see that tremendous growth in EV’s and there’s no indication that you know that’s going to slow. Yeah, last month, here in the United States, we passed the Inflation Reduction Act. That’s going to bring close to $400 million of stimulus through to the energy transition space. If we add the RIA Act, the Infrastructure Act and the Chips Act, it’s $450 billion dollars of stimulus that’s directed squarely at energy transition. And what this means is tremendous demand.

What’s discussed: 

  • Electric Vehicle Market Penetration
  • How previous EV auto sale projections have been too low
  • Inflation Reduction Act impact to EV demand

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