Some models will cost the same as combustion engines as soon as 2024 and become cheaper the following year, according to a report by Bloomberg New Energy Finance. For that to happen, battery pack prices need to fall even as demand for the metals that go into the units continues to rise, the London-based researcher said last week.
The clamor to roll out electric vehicles has grown louder as countries and companies race to clean up smog in their cities and hit ambitious climate goals set by the Paris Agreement. U.K. lawmakers started an inquiry into the market in September, probing the necessary infrastructure and trying to determine whether to bring forward the 2040 deadline to end the sale of gasoline and diesel cars.
With incentives, the U.K. could lower its automotive trade deficit by 5bn pounds (US$7bn), the Green Alliance reported. The World Wildlife Fund said that phasing out diesel and petrol cars earlier could add an extra 14,000 jobs to the industry. In separate reports last week, both groups urged Britain to bring forward the ban on petroleum-fueled cars to 2030.
China, the world’s biggest polluter, is looking to lead the world in electric-vehicle adoption with the government implementing production quotas aimed at increasing sales. The billionaire founder of Zhejiang Geely Holding Group Co., Li Shufu, bought a 7.3bn euro ($9bn) stake in Daimler AG last month.
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