Why is electric mobility important?

Electric mobility and lithium batteries are important to sustainable development

Introduction: Electric Transport is the Future

The transport sector is one of the most important carbon emitters in the world. As decision makers shift global economic models to more sustainable processes, there needs to be a change in how transport is undertaken, considering the 3 billion metric tons of CO2 caused by personal vehicles alone in 2020. The development of electric vehicles (EVs) has led to a fast shift within the automotive industry, with major manufacturers transitioning towards fully electric or hybrid vehicle production in relatively short time frames. Driven in part by increased demand from consumers, the rise of EVs also coincides with breakthroughs in battery technology, enabling electric transport to take on both micro and macro scales.

Importance of Electric Mobility

With the global vehicle fleet set to double by 2050 as consumers in developing economies gain access to the automotive market, the need to rapidly decarbonize the transport sector is abundantly clear. Described as one of the low-hanging fruits of global net-zero policy, increasing electric mobility will ensure sustainable development while also reducing the emissions created by transport. This, in addition to concerted action on reducing fossil fuels within global energy systems and manufacturing, will help limit global warming by the 1.5 degree mark dictated by the Paris Agreement.

However, supporting climate action is not the only benefit of adopting electric mobility. In the United States, 150 million people are estimated to live in areas that do not meet federal air quality standards – this is due to the prevalence of fossil fuel transport in major hubs across the country. Poor air quality is responsible for the premature deaths of 30,000 persons every year, as well as the development of respiratory ailments like asthma and bronchitis. Reducing our reliance on gas-based vehicles ensures that we are safeguarding the future of upcoming generations not just through climate action, but also local environmental improvements.

Vehicle for Investment

The EV and electric mobility market is ever-growing. From major retailers like Tesla to innovative startups like MOBI LATAM, innovation is redefining how we interact with transport systems. The global electric vehicle market was valued at $163.01 billion in 2020, and is projected to reach $823.75 billion by 2030 – this means that electric transport and their supply chains are also driving economic growth in a range of sectors. Companies like EnergyX, who are revolutionizing the lithium industry from brine to battery are a good example of the investment opportunities created by the rise of electric mobility. EnergyX develops technology that improves the lithium-ion batteries integral to EVs and renewable energy, making it and other like minded companies an integral part of the shift to net zero.

“Industry players are accelerating the speed of automotive technology innovation as they develop new concepts of electric, connected, autonomous, and shared mobility,” explain the authors of a 2021 McKinsey report on electric mobility, “The industry has attracted more than $400 billion in investments over the last decade—with about $100 billion of that coming since the beginning of 2020. All this money targets companies and start-ups working on electrifying mobility, connecting vehicles, and autonomous driving technology. Such technology innovations will help reduce EV costs and make electric shared mobility a real alternative to owning a car.” The electric mobility market is not just changing transport – it is driving economic development.

Conclusion: The Future is Electric

The global transition towards a low-carbon future means reducing our reliance on fossil fuels in our transport sector. With this shift corresponding to an industry-wide movement to move towards EVs as well as growing interest in expanding EV-related supply chains, all the signs point towards a strong electric mobility market that will revolutionize how we interact with our transport systems. Considering that EVs on the market today are already outperforming their fossil-fuel counterparts and the rising costs of petrol, the electric mobility era is already well underway. The future is electric – and the future is bright.