The unstoppable energy transformation: how renewable energy and electromobility are reshaping the future

The energy transformation has long been underway, is accelerating and is unstoppable: renewable energies are the most cost-effective form of electricity generation, batteries are becoming ever cheaper, more powerful and more resource-efficient, electromobility is growing exponentially, while the market for combustion engines is shrinking worldwide for the seventh year in a row.

China leads in BEV production and adoption, the rest of the world is making significant strides, driven by environmental concerns, regulatory support, and technological advancements. The increasing competition from China can be explained by the lead that Chinese manufacturers now have. This is also the reason why Chinese e-cars are cheaper. China was an early adopter of electromobility and has already largely amortised the high initial investments. As a result, a mid-range e-car in China costs almost half the price of a comparable European model.

Overall, electromobility is becoming increasingly affordable. The price of lithium-ion batteries per kilowatt hour has fallen by around 90 per cent in the last ten years, while the capacity of the batteries has doubled. In addition, production is becoming increasingly sustainable thanks to more cost-effective and energy-saving technologies and materials. Future technologies could completely dispense with conflict raw materials such as cobalt, for example lithium iron phosphate batteries.

Batteries currently contain two critical raw materials, in particular: lithium and graphite. These raw materials are mainly critical for political reasons, as they create dependencies: graphite comes almost exclusively from China, and the majority of lithium is produced in Australia, which supplies around two thirds of global production. Most of the lithium from Australian mines is processed almost entirely in China.

One way of moving away from these dependencies is to use alternative battery materials such as sodium-ion batteries. These contain hardly any critical raw materials, not even lithium. The first electric cars with sodium-ion batteries are already available in China. In addition to the advantage that their raw materials are available in unlimited quantities, these batteries also have faster charging times, better winter suitability and more favorable prices. However, the storage capacity still needs to be improved; current e-cars with this relatively new technology only reach around 300 kilometers on a single charge.

Solid-state batteries are also interesting as they are particularly safe and have a high energy density, which significantly reduces the overall weight. However, solid-state batteries still require lithium and are even more expensive, which is why the lithium iron phosphate variant is more likely to prevail in the short term, mainly due to its lower cost. Sodium-ion batteries also have great potential for reducing costs, but the corresponding production facilities have yet to be built.

New technologies and innovations also have the advantage that the demand for raw materials is continuously decreasing. Batteries are becoming smaller, while their storage capacity is increasing so that they can cover longer distances with less material.

Large-scale recycling of batteries from electric cars is not expected until the mid-2030s, as there is currently simply a lack of material for recycling. Current batteries can last up to one million kilometres in a car and can then still be used as buffer storage in industry.

It is also encouraging that the production of batteries is becoming increasingly low in CO2. This is achieved by replacing energy-intensive production steps with more economical ones and by the industry making a massive switch to renewable energies.

The integration of renewable energy sources with electromobility is crucial for developing a sustainable, efficient, and resilient energy and transportation system. This synergy advances broader environmental, economic, and social objectives, making it a vital element in the global shift towards a low-carbon future.