INDUSTRY BULLETIN: Governments continue to enact policies to promote Electric Vehicle uptake
Since the signing of The Paris Climate Agreement in April 2016, governments of all levels have enacted policies to incentivize electric vehicle (EV) uptake, with the goal of shifting their citizens away from internal combustion engine transportation. Such policies have included subsidies for EV purchases, as well as regulatory changes in the areas of registration, parking, standards and charging.
However, many countries are now going beyond these incentives and announcing future outright bans on the use of gas and diesel vehicles. Notable examples include:
- Germany aims to ban gas and diesel vehicles by 2030, as their automakers launch major investments into EV technology and manufacturing.
- France’s Ecology Minister, Nicolas Hulot, recently announced a “veritable revolution,” where the sale of gas and diesel cars in France would be ended by 2040.
- England announced “a manifesto commitment for almost all cars and vans on our roads to be zero emission by 2050.” England states this would necessitate all new cars and vans being zero emission vehicles by 2040.
- Norway, where 24 percent of vehicles sold are already EVs, targets 2025 for this goal.
- India has stated all vehicles could be EVs by 2030, by converting or replacing all other vehicles already on the road.
- The Netherlands, with about 6 percent of its total new vehicle purchases already EV, discussed a 2025 target.
While debate over the rate of EV uptake continues, many have concluded that the completion transition to EVs is now inevitable, with ING commenting, “The internal combustion engine car industry will have been long decimated by 2040.” The International Monetary Fund seems to be in agreement with this conclusion; in a recent report, they estimated that as much as 90 percent of global vehicle production will be EVs by 2040.
Considering that each 1 percent increase in EV uptake requires an additional 70,000 tonnes of lithium (in a current market of less than 200,000 tonnes), a question that needs to be asked is, “where will the critical materials needed to fuel this growth come from?”
Avalon’s Separation Rapids Lithium Project near Kenora, Ontario, is one advanced lithium project that can not only feed this increasing appetite for lithium compounds, but also anchor downstream economic activity and opportunities in Ontario from these exponentially expanding EV technology opportunities.
For questions or feedback, please email Avalon at ir@AvalonAM.com
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in niche market metals and minerals with growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and zirconium. Avalon is currently focusing on its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate cornerstones.