Article by China Llanos
Digital Content Writer & Editor,
www.jpmorgan.com
What is the electric vehicle (EV) boom?
Electric vehicles are taking to the road in record numbers, and the entire industry is heating up in 2024. Learn about what’s happening in the EV market. When you hit the road, are you behind the wheel of an electric vehicle (EV)? Although EVs have been cruising American highways for nearly 20 years, the EV market has recently experienced a growth spurt. Global EV sales grew significantly from 2022 to 2023, marking a 35% year-over-year increase. In Q1 2024, EV sales grew by 25% compared to Q1 2023. The International Energy Agency projects that this trend will continue and that EV sales in the U.S. could account for almost one fifth of total passenger car sales by 2035.
EV production has been boosted by the government and investors alike – President Joe Biden had set the goal that half of all vehicles sold in the U.S. by 2030 be either fully electric or hybrid and companies invested nearly $85 billion into the EV industry in 2021 and 2022. As of 2022, there were more than 130,000 charging stations in the U.S., but if EV production ramps up as projected, there will be a pressing need for many more. The administration aimed to build a network of 500,000 chargers by 2030. As of February 2024, there were over 61,000 public EV charging stations across America, and that number is only expected to grow. With all these factors in play, it’s easy to see why many investors are eager to learn about the EV market.
Parts and raw materials
If you want to understand where to put your money within the EV industry, you may want to start with looking under the hood. It’s important you have a sense of what parts and materials are needed to make and power electric vehicles so you have the full picture of where your investment can go.
Batteries are the most integral part of an EV – so, what makes up a battery? Lithium is a key metal in EV batteries – in fact, the majority of manufacturers of EVs and plug-in hybrid cars use lithium-ion batteries. There’s also copper, nickel, iron, silver, aluminum and several others. These materials are crucial for creating electric vehicles and are expected to increase in demand as EVs do.8
Companies involved in mining and processing the aforementioned materials are another important piece of the EV industry. With metal prices on the rise for crucial metals like lithium, EV companies are investing in bolstering their supply chain. There is also a need for more mines as demand for electric vehicles continues to rise.
Read more here at: https://www.jpmorgan.com/insights/investing/investment-strategy/what-is-the-electric-vehicle-boom
