The EU can halve the market share of Chinese electric vehicles by 2035, if it creates an integrated supply and production chain that reduces manufacturing costs, according to the International Energy Agency (IEA).
At the current rate, Chinese vehicles will reach 40% of the EU electric vehicle market share in 2035, double the current 20%. even with the recent customs duties approved by Brussels, stated the IEA, in a report on strategic industries for the energy transition, published on Tuesday.
The document indicates that, for the European automobile industry to compete in the electric car market, it is essential to reduce manufacturing prices and achieve full integration of supply chains, including batteries, which represent around 40% of the total cost.
The IEA considered that the European production of technologies for the energy transition will depend on the success of the implementation of the Zero Impact Industry Regulationwhich considers that it has “easily achievable” objectives in wind and heat pump technologies, but with “much greater” challenges in the automotive sector.
The document highlighted that, Globally, the uniform development of clean technology industries and their trade will be essential to curb climate change.
The IEA recalled that the Global market for six major clean energy technologies. (photovoltaic, wind, electric vehicles, batteries, electrolyzers and heat pumps) quadrupled between 2015 and 2023exceeding 700 billion dollars (647.2 billion euros).
Growth will continue at an accelerated pace and the value will almost triple by 2035.to more than 2 billion dollars (1.8 billion euros), a value equivalent to that of the world crude oil market in recent years, highlighted the IEA.
The report recalls that there is “a huge wave of investment in the production of clean technologies” around the world, estimating that investment in production in this sector will have reached 235 billion dollars (217 billion euros) by the end of 2023, an increase of 50%.
HE China is currently the world’s leading center for the production of clean technologies.But the IEA highlighted that this is not only due to low production costs, but also to other factors such as the huge domestic market, economies of scale and companies and facilities highly integrated in the supply chain.
At the current rate, China will export more than $340 billion (€315 billion) in clean technologies by 2035, the equivalent of the combined oil exports of Saudi Arabia and the United Arab Emirates in 2024.
In the United States, the report highlighted that laws to reduce inflation and promote infrastructure construction are bearing fruitwith 230 billion dollars (212 billion euros) already mobilized between now and 2030, which means that North American demand for photovoltaic panels will be covered almost entirely by national production between now and 2035.
Regarding Latin America, the IEA highlighted the important role that Mexico can play as a production center for the North American market, as is currently the case with internal combustion vehicles.
The report also highlighted the Brazil’s potentialwhich already has an important wind blade industry (currently producing 5% of the world’s total) and which, thanks to its abundance of renewable energy – like its neighbors – could export products produced almost without carbon emissions to developed countries. greenhouse gases, such as steel or ammonia, destined for markets where their manufacture is more expensive, such as Japan or Europe.
Source: Observadora
