Australia on the brakes when it comes to EVs

The predicted global demand for lithium over the next 10 years comes almost entirely from the consumer power of purchasing Electric Vehicle (EVs).

Between 2018 and 2020, the lithium market wasn’t looking good due to predicted uptake of EVs not occurring as expected. At this time, the Chinese Government removed subsidies it had in place due to an oversupply of lithium and EV demand not growing as quickly as it did the year before.

Since then, it has gradually been increasing and the requirement for subsidies are now almost non-existent. The price of EVs is slowing falling as demand has started to pick up and major car manufactures invest in their infrastructure – expanding the diversity of vehicles on offer.

In Australia, the Federal Government still mandates a luxury car tax on EVs making them an expensive option for most family households.  

Recently the Western Australian Government launched an Electric Vehicle Action Plan – a promising sign for the lithium market as demand continues to rise. Read more here about the Government announcement – https://www.mediastatements.wa.gov.au/Pages/McGowan/2021/08/WA-accelerates-towards-longest-EV-fast-charging-network.aspx

Combustible engines will soon be a thing of the past with several western governments already setting future legislation.  The United Kingdom has banned the sale of new combustion-engine vehicles by 2030 (originally, they said 2040) and Canada has stated its intentions to ban the sale of new internal combustion engines by 2035.

Despite the many benefits to switching to EVs, logistically Australia isn’t quite there yet. With increased consumer demand, mounting pressure to address climate change and the individual drive to choose green – EVs are yet to make their mark here. However, when they do, the lithium market will be there waiting to flick the switch and put rubber on the road.

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