Electric Vehicles, or EVs, have made a grand entrance into the market in recent years. EVs are now a force to be reckoned with, from cars to tractors to mining trucks. The push to transition to all EVs by 2035 may be unrealistic, but 2050 is well within the realm of possibility. As the world seeks to wean itself off gas-burning vehicles and power plants, the impact on energy commodity markets and global trade will be immense. In this blog post, we will explore what the future looks like for EVs and how this will impact the world at large.
For over a hundred years, countries have relied heavily on fossil fuels, particularly oil and gas, for their commodity needs. However, this is starting to change as governments seek to reduce their carbon footprint in line with the Paris Agreement on climate change. The transition to EVs will have far-reaching implications, not just for the energy market but also for other industries such as construction and mining. While Saudi Arabia, the U.S., and Russia all sit on massive oil and gas deposits, the minerals needed for EV batteries are mainly located in third-world countries. This raises questions about whether these countries will become more prosperous by having these resources and whether oil-based economies will become less successful in the long run.
The sheer scale of EV production is staggering. In 2019, 56 million cars or light vehicles were sold worldwide, and another 3 million heavy-duty or semi-trucks/dozers were sold. A semi-truck needs ten times more batteries than a car, while a mining truck needs four times that amount. As a point of reference, a Tesla Model Y car manufactured in Austin has 1,500 small-Coke-can-sized batteries. While the transition to EVs seems like an environmental win, the downsides of mining the minerals needed for batteries should not be overlooked. Let the Congo be a substantial glaring example of what mining does to the local environment and population.
Mining can cause significant damage to the environment and communities that depend on it. For instance, the Democratic Republic of Congo (DRC) produces around 70% of the world's cobalt, used extensively in EV batteries. However, mining in the DRC is associated with child labor, human rights violations, and significant environmental degradation due to dangerous chemicals. As the world rushes to transition to EVs, it is essential that the environmental and social implications of mining these minerals are considered and addressed.
One of the most significant advantages of EVs is their lower carbon footprint compared to gas-burning vehicles. However, this also depends on how electricity is generated to power the EVs. If electricity is produced using fossil fuel sources, then the carbon footprint of EVs will be higher. Therefore, transitioning to renewable energy sources such as solar, wind, and hydropower is essential to fully realize the potential environmental benefits of EVs.
The transition to EVs will revolutionize the energy market and impact several other industries globally. The shift to renewable energy sources and reducing carbon emissions are essential environmental priorities. However, it is necessary to look beyond the environmental benefits of EVs and consider the broader implications, including the socioeconomic impact on third-world countries that supply raw materials for EV batteries. We need to strike a balance between the environmental benefits of EVs and the social and environmental downsides of mining minerals for their batteries. By doing this, we can create a world that is both sustainable and equitable.
Pic Credit - Congo EV Battery Mineral Charts Mining Pit Top mining country
