The electric vehicles (“EVs”) market is growing swiftly. For instance, electric vehicle sales in the U.S. in 2017 rose by almost 30%, and this translates into approximately 200,000 units. Given the low gas prices that are a marketing strategy to incentivize consumers to stick with diesel and gas cars, the increase makes it all the more impressive.
Globally, there are lots of initiatives to ban the sale of oil vehicles, with the biggest reason behind this being clearing the skies of smog-filled cities. India, China, Norway, France, Netherlands as well as the UK have expressed their desire to phase out diesel and gas vehicles in the decade to come. In Norway, electric vehicle sales make up 33% of all car sales, showing how effective government incentives can influence attitudes of car buyers.
Countries that announce bans on the selling of oil vehicles are documented by the World Economic Forum. However, to ensure success of electric vehicles, there needs to be an uninterrupted price declines, especially in terms of battery prices and also the development of longer range batteries that’ll enable farther distances to be covered on a single charge.
According to Bloomberg New Energy Finance, it is predicted that by the year 2040, most new car sales (54%) will be electric vehicles and an estimated 33% of the worldwide car fleet will be electric as well. Reduced prices for batteries is forecasted to bring about price-competitive electric cars to almost all if not all big light-duty car segments before the year 2030.
However, there’s a lot more to electric vehicles. Electric vehicles are electricity-powered, which is an energy source derived from the combustion of natural gas and coal, in most parts around the world. This is great news for companies like Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR).
Additionally, given that electric vehicles require a night to fully recharge, this drives up a residence’s power consumption by about 50%. Forbes cites the addition of an electric vehicle to the grid as similar to adding three homes.
Despite the measures being taken to meet the increase in power required when more electric vehicles are being used, it is impossible to deny that for every 10 times that an electric vehicle recharges, 6.5 of those instances it will be banking on natural gas and coal.
In the U.S., electrification will result in increased demand for electricity. So, it is vital that as we pursue alternative sources of energy, we should also keep in mind that once the nuclear and coal plants are exhausted, there’s no going back.
Present-day models also predict that the global demand for electricity will grow by between 1 and 3% every year. So all in all, electricity consumption will grow with or without electric vehicles.
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