Electric Vehicles

delivered as of end of 2020



The time it takes for Li ONE to charge on a fast charge



engaged in R&D at Li Auto as of end of 2020

The Path to Drawdown: Electric Vehicles

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

Today that landscape is changing thanks to supportive policies and falling costs. More than 1 million EVs now take to the roads. The difference in impact on the climate is remarkable. Compared to internal combustion 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, their operating costs are often cheaper than gas-based cars, too.

What once used to be a limitation 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 vehicle produced in 2020 is about 217.5 miles, up from 124 miles in 2015.

What’s making this increase in mileage possible is the continuing development 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:

  • 11 million EV cars and vans were on the road in 2020
  • 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


Li Auto Inc. (stock ticker: LI) makes smart electric sport utility vehicles (SUVs) in China. It offers Li ONE, a six-seat electric SUV that equipped with a range of extension system and smart vehicle solutions. The company was formerly known as Leading Ideal Inc. and changed its name to Li Auto Inc. in July 2020. Li Auto Inc. was founded in 2015 and is headquartered in Beijing, China.

LI's Role in Drawdown

Li Auto generates 100% of its revenue from selling electric SUV's and luxury vehicles in China, one of the fastest growing markets for SUV's

Their first model, Li ONE, is a six-seat electric SUV with a range of ~112 miles on a single electric charge. It can be charged in approximately 30 minutes on a fast charge. 

Other SUV models are in development, and Li Auto plans to launch them in 2022.

LI: What We Like

We'll update this section once Li Auto makes sustainability information available.

LI: What We Want to See Improve

Disclose Sustainability Metrics

As of now, Li Auto doesn't offer any sustainability information on their website. As investors demand more transparency around companies' carbon footprint and sustainability efforts, pressure on EV manufacturers like Li Auto to enhance their sustainability disclosure will inevitable increase. We urge their executives to be ahead of the curve by publishing an annual sustainability report with science-based metrics and goals as soon as 2022.

Enhance Manufacturing Transparency

Like sustainability disclosure, publicly traded companies are being called upon to be more transparent about the carbon footprint throughout their value chain and manufacturing process. Li Autho states (p. 47) that they manufacture in-house in Jiangsu Province, China, and collaborate with industry leading suppliers. We'd like to know much more about who their partners are and their overall carbon footprint.

Other Electric Cars (EVs) Stocks in the Climate Index

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