140

Electric Vehicles

on the road

10

Years

of R&D in electric commercial vehicles

50%

Market Share

ZEV enjoys >50% market share in Classes 3-7 electric vehicles in the US, 2020-2021

View Our Analysis

The Path to Drawdown: Electric Vehicles

The original electric vehicle (EV) prototype was built in 1828, but their inability to surmount the challenge of building a lightweight, durable battery with adequate range meant that internal combustion vehicles have dominated the automotive and transport landscape since the 1920s.

Today that picture is changing. Thanks to supportive policies and falling costs, there are more than 1 million EVs on the road. The difference in impact on the climate is remarkable. Compared to petroleum-based vehicles, CO2 emissions drop by 50% if an EV’s power comes off the conventional grid. If powered by solar energy, emissions are cut by 95%. Once households purchase EVs, the operating costs for those cars are often cheaper than gas-based cars, too.

What once used to be a big challenge for EVs - the question of how far the car can travel on a single charge - is now much less of a concern. The average range of a battery electric passenger vehicle made in 2020 is about 217.5 miles, up from 124 miles in 2015.

What’s making this lengthening in mileage possible is the continuing improvement in battery capacity. Global EV battery capacity is expected to increase from around 170 GWh per year today to 1.5 TWh per year in 2030. At the same time, the cost of batteries is falling as their production reaches greater scale.

To be on track to remain under 1.5ºC of warming, 100% of passenger cars and vans (p. 138) need to be running on electricity by 2050. This is a jump from 5% of cars and 0% of vans in 2020, respectively. Accomplishing this overhaul of the transportation landscape means EV production and ownership need to continue to expand over the next three decades:

  • <::marker> 11 million EV cars and vans were on the road in 2020
  • <::marker> 2 billion EV cars and vans (100% of total global sales) need to be on the road by 2050

This would require a CAGR of 18.94% from 2018-2050

What We Want to See Improve

More coming soon!

Related Electric Car Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description

5.00%

Tesla Motors, Inc. (TSLA)

Tesla Motors makes EVs, battery energy storage, solar panels and solar roof tiles. They’ve done the most to make EVs cool

4.12%

Nio Inc. (NIO)

Nio Inc. makes EVs and integrate self-driving systems in EVs. They’re helping to electrify the transport system

2.55%

XPeng Inc. (XPEV)

XPeng makes electric passenger cars and SUVs with a long range and autonomous driving capabilities. They’re helping electrify transport

0.69%

Lennox International (LII)

Lennox makes high-efficiency heating, ventilation, air conditioning and refrigeration products, helping building managers cut energy use and emissions

0.66%

Arrival (ARVL)

Arrival makes commercial electric vans and buses through an innovative and efficient manufacturing process. They’re helping electrify transportation

0.30%

Fisker Inc. (FSR)

Fisker makes luxury and high-end electric cars and SUVs with a long range. They’re pushing the electrification of transportation

0.17%

The Lion Electric Company (LEV)

LEV makes electric trucks, school buses and minibuses in North America. They also make batteries and EV charging infrastructure, all key Drawdown solutions

0.16%

Proterra Inc. (PTRA)

Proterra offers electric transit buses, EV batteries and energy storage, as well as EV charging solutions - all key to electrifying transportation

0.12%

Canoo Inc. (GOEV)

Canoo makes a range of electric vehicles designed for families and commercial uses. They’re helping electrify transportation

0.05%

XL Fleet Corp. (XL)

XL Fleet makes hybrid and electric systems so that leading automakers can make more low and zero-emission vehicles

0.03%

Arcimoto, Inc. (FUV)

Arcimoto makes ultra-efficient, fun, pure electric vehicles for passenger transportation. They’re helping electrify transportation.

0.03%

Lightning eMotors, Inc. (ZEV)

Lightning eMotors makes electric commercial vehicles and charging solutions for those vehicles. They're helping electrify transportation

0.02%

Ayro, Inc. (AYRO)

Ayro makes EVs designed for narrow paths, college campus walkways, and last-mile delivery. EVs are key in electrifying transportation

0.02%

GreenPower Motor Company Inc. (GP)

GP makes electric commercial vehicles for delivery, public transit, schools, micro-transit, and shuttles. They’re helping electrify transportation

0.02%

Jiuzi Holdings, Inc. (JZXN)

Jiuzi Holdings and their subsidiaries make EVs for the Chinese market. They’re helping electrify transportation

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