The Rise of the Electric Vehicle in China

The Rise of the Electric Vehicle in China

For much of the world, electric vehicles are still considered luxury items.china electric vehicle But in China, the most populous country on Earth, EVs have gone mainstream. It's a remarkable story, and one that may have serious implications for the global environment.

It all started with a dream of a man named Wan Gang, an auto engineer who spent a decade in Germany working for Audi.china electric vehicle As minister of science and technology in 2007, Wan pushed Beijing to go all-in on EV development. It took a few years of investment and subsidies for the country to get its EV industry off the ground. But by 2021, China passed a key milestone: EVs had accounted for more than 5 percent of all new car sales.

By 2040, that number is expected to hit 40 percent.china electric vehicle That means more clean air, fewer greenhouse gases and less dependence on oil imports. But it will also cost consumers and society a significant amount of money. According to a new study from MIT, it could take 100 billion yuan (about $14 billion) per year from 2021 to 2030 to make the transition to electric cars affordable.

The study's authors used a variety of data sources to determine how much it costs to manufacture an EV battery and then, using a standard markup for profit, determined the likely selling price of the cars.china electric vehicle Then, they added up all the costs, including the extra expense of manufacturing and driving an EV, to find out how much each vehicle is costing to society.

Another factor that adds to the extra cost of EVs is the price of their critical raw materials. The researchers found that if these prices surge, it would undermine the positive effect of technical innovation and slow fleet electrification.

Chinese EV makers are now starting to feel they have a real chance to become global brands. Some are already entering Europe and even considering the U.S., despite the sensitive political situation. And some of them have built EVs that can compete with Tesla's best models in terms of range and performance.

But a major question remains: Will these Chinese companies be able to expand outside the country without losing their competitive edge? To do so, they'll need to build more factories. They'll also need to develop battery tech that's fast and reliable enough for long-distance travel. But most important, they'll need to convince consumers that their vehicles are worth the extra expense. And that's a tall order, even for a nation with the most ambitious environmental goals in the world.

Tags:china ev car