Bloomberg has launched a cracking series of animations and deep-dive insights around a range of issues, the first focusing on Electric Vehicles and the impact EVs will have on oil. And it’s all about batteries.
The deep-dive examines the rate of growth in EV sales and the tipping point at which an oil crisis is caused through dipping demand - and it could be just a few years away.
Other than tackling range anxiety (and the motor manufacturers are on it), one of the key parameters is the cost of electric vehicles. While the oil industry dismiss EVs and talk about low market penetration, you have to take a step back to see the real picture, which is about cumulative sales and historic trends. In fact, the rise of the Model T Ford is an excellent case in point, with a growth curve similar to both EVs and solar panel uptake.
When the magic price point is reached depends on the cost of vehicles - and primarily batteries - coming down in cost. In the last five years, batteries have reduced in cost by almost two thirds - a crash, such is the pace of technology driven by IT and communications as much as automotive and aerospace.
Watch the animation HERE