Sales of battery electric vehicles (BEVs) are expected to account for 38% of global vehicle sales in 2030 and more than 60% in 2035, up from 12% in 2023. Despite regional differences and short-term fluctuations (for example, changes in government subsidies), the industry shift from conventional combustion engine vehicles to battery electric vehicles is clear. Supportive regulatory environments and technological advances will further boost vehicle electrification despite some near-term headwinds.

What does this mean for car manufacturers today? Their commitment to EVs remains strong, with 100+ new models likely to be brought to market over the next three years. Following a temporary surge in battery prices in 2022 due to raw material price hikes, we expect prices to decline through 2030 due to process and technology improvements.