The report titled “Driving Change: How Electric Vehicles Can Rise in the Global South” highlights that the adoption of BEVs presents a unique chance for these countries to leapfrog into a future-oriented industry. Particularly, it emphasises the vital role of the Global South in the EV value chain, from material sourcing to manufacturing and end-of-life recycling.
One key opportunity lies in the abundance of critical materials like lithium, cobalt, manganese, and nickel in the Global South, crucial for manufacturing various EV components. The report suggests that localizing the processing of these materials can enhance their value and boost domestic EV production.
Another significant area is the manufacturing, sales, and logistics of BEVs. With battery prices dropping significantly, the report notes that BEVs are becoming more affordable. Countries like Nigeria and Thailand are already making strides in this direction. Nigeria is set to begin domestic assembly of EVs, aiming to produce thousands annually, while Thailand has attracted substantial investment in EV production due to its incentive packages.
The report also underscores the importance of transitioning existing ICE manufacturing assets in the Global South to EV production. This move is crucial as demand for ICE vehicles declines, preventing the risk of stranded assets and continued reliance on fossil fuels.
Servicing the growing BEV fleet will also create new job opportunities and require new skills focused on electronics and electric motors. Furthermore, the potential for the Global South to leverage its renewable energy resources in EV and component production could give it a competitive edge, especially as emissions legislation becomes more encompassing.
However, challenges such as the need for EV charging infrastructure and the current dependency on used ICE vehicle imports are also noted. Addressing these challenges through innovative solutions and partnerships is crucial for the successful transition to a sustainable EV ecosystem.
In conclusion, the report by Carbon Tracker Initiative offers a comprehensive overview of the potential and challenges in the EV sector for the Global South. It calls for strategic planning and international cooperation to harness these opportunities, positioning these countries at the forefront of the global shift towards electric mobility.
Source: Driving Change: How Electric Vehicles Can Rise in the Global South | Carbon Tracker Initiative
