EV adoption has reached a tipping point driven by battery economics, not oil prices
By
Viet Nguyen-Tien
Slow-proofed and worth the wait. Worth its weight in flour.
Summary
The article argues that the electric vehicle (EV) market has reached a tipping point where adoption is no longer dependent on oil prices. Unlike previous EV surges triggered by oil crises (like 1973) that collapsed when oil prices fell, this transition is driven by fundamental improvements in battery technology and economics. The author contends that even if oil prices drop, the EV transition will continue because the cost and performance of batteries have improved enough to make EVs economically viable on their own merits.
Key quotes
· 3 pulledWhen the Strait of Hormuz first closed in March and oil hit US$120 a barrel, a very old question came back: is this finally the moment electric vehicles take off for good – or just another false start?
We think this time is different. In a new discussion paper, we argue that the economic case for electric vehicles is now improving on its own terms.
This is because of what has happened to batteries, not because of the oil price.
You might also wanna read
BYD's EV Strategy Succeeds as Rising Fuel Prices Drive Electric Vehicle Adoption
BYD, the Chinese automaker that stopped producing internal combustion engine vehicles in 2022, is experiencing increased electric vehicle sa
electrek.co·2mo ago
US Electric Vehicle Market Faces Decline After Subsidy Expiration
The article discusses how the US is falling behind in the global electric vehicle (EV) race despite a recent surge in demand. The temporary
bbc.com·7mo ago
Western Carmakers' EV Retreat Risks Repeating 1980s Strategic Mistakes
The article argues that Western carmakers are repeating the strategic mistakes of the 1980s by pulling back from electric vehicle (EV) inves
theguardian.com·2mo ago