The era of 300,000 electric vehicles in Korea Electric vehicles being charged in a building in Gangnam-gu, Seoul on the 31st. According to the statistics of the Ministry of Land, Infrastructure and Transport, the cumulative number of electric vehicles supplied in the first half of this year was 298,633. Considering the trend of selling more than 10,000 units per month in the automobile industry, it is currently estimated that the number has exceeded 300,000. Yonhap News”/>
The era of 300,000 electric vehicles in Korea Electric vehicles being charged in a building in Gangnam-gu, Seoul on the 31st. According to the statistics of the Ministry of Land, Infrastructure and Transport, the cumulative number of electric vehicles supplied in the first half of this year was 298,633. Considering the trend of selling more than 10,000 units per month in the automobile industry, it is currently estimated that the number has exceeded 300,000. yunhap news
China with 57% market share
Judgment of ‘biased’ in battery resources and production
UK repeals subsidy following 11 years
Germany declares ‘phase-down’
Possibility of hitting Hyundai and Kia
Countries in the European Union (EU) have recently shown successive measures to speed up the transition to electric vehicles. An abnormal current appeared in the movement to end the era of internal combustion locomotives by putting forward the future-oriented value of ‘environment-friendly’.
European countries are reducing electric vehicle subsidies and tax incentives. Germany announced on the 27th (local time) that it would reduce subsidies for electric vehicles in stages and ultimately cut them completely in the name of Minister of Economy Havek. The UK recently abolished the electric vehicle subsidy introduced in 2011 following 11 years. Norway also decided to gradually reduce the benefits given to electric vehicles, such as driving in bus lanes, discounts on tolls and parking fees, and exemption from VAT.
The first reason that European countries are putting the brakes on the electric vehicle era is the battle for supremacy with China. According to the ‘Eco-Friendly Vehicle Support Project Analysis’ report released by the National Assembly Budget Office on the 25th, China’s 47.5-65.7% of electric vehicle sales in China, Europe, the United States, Korea and Japan between 2018 and 2021 accounted for the highest proportion. Europe, with the second highest sales ratio, was 14.1-35.3%. The United States (10.7-14.7%) came in third place, followed by Korea (1.9-2.1%) in fourth place. Japan was last in fifth place.
Second, the battery pack, which is the core of electric vehicles, is also being monopolized by Asian countries, including China. According to SNE Research, a market research firm, among the top 10 battery companies as of last year, 6 were Chinese, 3 were Korean, and 1 was in Japan. In terms of market share, China has 48.6%, Korea 30.4%, and Japan 12.2%.
It is also a burden for European countries that the four minerals (lithium, nickel, cobalt, and manganese) required for battery production are limited to specific countries. According to the U.S. Geological Survey (USGS) 2022 ‘Tin Reserves by Country’ report, lithium production is concentrated in three countries: Australia 48.1%, Chile 26.0%, and China 16.1%. Nickel is followed by Indonesia with 30.7%, the Philippines with 13.3%, and Russia with 11.3%. Cobalt accounts for 68.9% of Congo, 6.3% of Russia and 4.0% of Australia. Manganese also has a clear bias at 34.4% in South Africa, 17.6% in Australia and 17.5% in Gabon. Minerals are concentrated, supply instability due to Corona 19, and the conflict between the US and China have ultimately become burdensome factors in the transition to electric vehicles.
The reduction in EV benefits in European countries might also hurt Hyundai and Kia. Germany will reduce the subsidy of 6,000 euros (7.9 million won) for electric vehicles under 40,000 euros (53.2 million won) to 4,500 euros from the beginning of next year and 3,000 euros from 2024. The models most sensitive to subsidy policies might be Hyundai’s Ioniq 5, the upcoming Ioniq 6, and Kia’s EV6.
However, despite the opposition from some European countries, strength is being given to the fact that the transition to electric vehicles is difficult to change. Kim Cheol-soo, professor of Future Automotive Engineering at Honam University, said, “In countries like Germany, Mercedes-Benz and BMW are in a situation where their existing positions are shaken in the electric vehicle era, so they are slowing down to protect their own companies.” “RE100 (100% renewable energy) or 2035 It will be difficult to stop the big trend of stopping the production of internal combustion locomotives in 2018,” he said.
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