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General Market Commentary
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General Energy
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General Market Commentary
Report: Mining needs $100–$150 billion to meet EV demand
Consulting firm McKinsey put a note out on Thursday calling attention to "three surprising resource implications from the rise of electric vehicles".
Number one is that oil & gas investors can sleep well for at least the next decade as the impact of the move away from internal combustion engines will only modestly impact demand for fossil fuels.
In fact, demand for natural gas fired power stations – all those EVs need to be charged after all – will increase by 20% if half the cars on US roads were electric. Even coal would get a bump from EVs says McKinsey.
Secondly, the need for millions of public charging stations (China alone plans to build 4.8m by 2030) could open up the possibility of a land squeeze becaus it takes "multiple rapid 120-kilowatt charging stations with eight outlets to dispense a similar amount of range per hour as the standard-size gas station of today."
The research consultants calculate that since battery costs make up 40–50% of your average vehicle, costs for the unit would have to fall to below $100 per kilowatt hour from $220–$225/kwh today to "achieve cost parity with ICE vehicles".