Growth of EVs Driven by Policy, Falling Battery Costs

May 30, 2018—The International Energy Agency's report shows that the growth of electric vehicles (EV) has been driven by governmental policy and reduced costs of lithium-ion batteries.

The number of electric and plug-in hybrid cars in the world exceeded 3 million in 2017, a 54 percent increase compared with 2016.

The report notes that ensuring the increased uptake of EVs while meeting social and environmental sustainability goals requires the adoption of minimum standards on labor and environmental conditions.

Innovations in battery chemistry will also be needed to maintain growth. There are supply issues with core elements that make up lithium-ion batteries, such as nickel, lithium and cobalt. Almost 60 percent of the global production of cobalt is currently concentrated in the Democratic Republic of Congo.