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Oil shocks could accelerate electric vehicle adoption, Wood Mackenzie says
Wood Mackenzie projects global oil consumption could fall to 99 million barrels per day by 2040 and the US EV market share could rise to 20% from 3% today.
Oil supply disruptions and higher fuel prices tied to conflicts involving major producers such as Russia and Iran could provide renewed momentum for electric vehicle adoption, according to a new report from Wood Mackenzie.
The firm points to faster battery innovation, including progress in China on five minute charging and the development of sodium-ion and lithium iron phosphate batteries, as factors that may help EVs gain share.
Wood Mackenzie also argues that governments may need to increase support for domestic EV technology, or license more Chinese technology, to keep pace and reduce exposure to oil-price shocks.
In its outlook, Wood Mackenzie sees petroleum demand weighing down, with global oil consumption potentially declining to 99 million barrels per day by 2040 versus more than 100 million bpd today, while the US EV market share could rise from 3% now to 20% by 2040 and Europe’s could climb from 3% in 2025 to 35% by 2040.