The COP26 summit saw governments, businesses and organisations rapidly committing to the transition to zero-emission vehicles. The deadlines of 2040 globally and 2035 in leading markets are fast approaching. As a result, some governments plan to ban the sale of fossil fuel vehicles – the UK for example, from 2030. Such commitments have been met by an all-electric promise from carmakers like Audi, Mercedes-Benz and Volvo, as well as significant government investment into electric vehicle (EV) charging infrastructure in new homes and on main roads. We might call this progress…

But are EVs really the future? Regardless of falling battery costs or the fact that developing EV production lines contribute to a more competitive price offering, are they really as green and convenient as perceived? And where should investment be placed to make them greener?

EVs are not as green as you think…

A common misconception of EVs is that they are zero emission. Although fully electric vehicles do not emit the dangerous by-products that petrol and diesel combustion engines do when on the road (namely carbon monoxide, nitrogen oxides and particulate matter), they are by no means perfect. Here’s why:

Mining

The rechargeable batteries used in EVs are made up of three main components: Lithium, Nickel and Cobalt – all non-renewable resources that must be mined.

With the rise in global demand for EVs comes the need for a proportional increase in the land devoted to mining. And in turn, significant environmental and social concerns. With around 70% of the world’s Cobalt supply produced by the Democratic Republic of Congo, several issues have already been flagged. Namely, hazardous working conditions, significantly low pay and child-labour. What’s more, the waste that’s generated as a by-product from Lithium and Cobalt mining can pollute the surrounding air, soil and water, leading to contamination and further health issues for nearby communities. And so it becomes clear; mining in any context, whether for conventional engines or EVs, is not a sustainable process.

EV manufacturers such as Tesla are investing heavily in the development of cobalt-free batteries, but the alternatives have lower range and performance. It’s a step in the right direction for the environment, but unlikely to have high uptake in the consumer market – one already put off by the small range of EVs.

Manufacturing

When it comes to manufacturing, the greenhouse gases released from the mining, transportation and refinement of the raw minerals are similar in volume to what we see in petrol and diesel vehicles. However, the battery production for a single EV leads to substantially higher C02 emissions (between 3-16 tonnes per battery, depending on the size). So, although the vehicles are cleaner over time, it takes multiple years of driving to offset the initial emissions required to produce the batteries. A much lesser-known fact…

Electricity generation

The environmental impact of charging EVs is largely dependent on the source of electricity used to charge the battery. Obviously, a more negative impact arises from fossil-fuel generated electricity in comparison to renewables. So, with nearly 40% of the UK’s electricity still generated from fossil-fuels, there is no guarantee that charging an EV will result in zero emissions. In countries such as China, electricity is largely produced from coal – making it worse for the environment than burning crude oil. This also applies to the emissions resulting from the electricity used in the battery manufacturing process. This means we cannot truly achieve the full environmental benefits of EVs until electricity generation is fully decarbonised and clean. 

The range is not great…

As mentioned, the limiting factor to EV uptake is often their range, making them inconvenient for those travelling long distances. With the average range of 260 miles (stretching up to 300-400 miles for some of the more advanced models) and a high-voltage charging time of at least 30 minutes, EVs still remain more convenient for shorter journeys. So, despite governments investing significant funds into the roll-out of EV charging points, the shorter range still poses a risk of breakdown far from a charging point, requiring a tow-truck to save the day.

What could the future look like?

Electric vehicles

The future for battery production must be more ethically viable and practical than current technology and processes allow for. Investment is pouring into developing energy storage capabilities and battery technology for EVs, but progress is not fast enough to realise the global targets we have set.

That said, there is greater potential for these innovations to deliver faster-charging, cheaper and more powerful batteries that are also easily recyclable. In addition to this, several organisations such as global raw material producers and manufacturers have collaborated through the Global Battery Alliance under the World Economic Forum to ensure that “battery production not only supports green energy, but also safeguards human rights and promotes health and environmental sustainability”.

Hydrogen vehicles

As we recently explored in ‘the green light for green energy’, hydrogen-powered fuel cells are top of mind for many in the future of transport. A year-long project involving Rolls-Royce and Airbus concluded that green hydrogen is the future of air travel, and car manufacturers such as Toyota are promoting their blue hydrogen vehicles as the future. The benefits seem clear: the only by-products of hydrogen are water and heat, both of which are natural resources, the range of which exceeds EVs, and they have a much shorter refuel time (similar to the time it takes to refill a combustion vehicle). But, is the current method of creating hydrogen even sustainable?

Further technological advances around decarbonised hydrogen production, as well as consideration around safe storage, transport and infrastructure are still required. In the next few decades, as investment is directed towards hydrogen as an energy source and as more of the benefits are brought to light, hydrogen vehicles could be a strong contender for the future of zero-emission vehicles.

Other potential contenders include solar power and biodiesel, although the former cannot fuel a car entirely on its own due to low range and reliance on the sun, and the latter still requires large technical innovations to make it a reality. 

So, what’s the verdict?

It’s clear that EVs could have a lower carbon footprint than combustion vehicles over their lifetime, but right now that’s not always the case. The energy intensive battery production process and coal-powered electrification is not zero-emission and has significant social and environmental implications. Plus, their range and longer charging time creates inconvenience for long journeys. Yet, with investment in battery technology innovation, this may well change in the future, as well as the need for greater regulation around the battery production process. To achieve net zero-emission, we need a standardised and integrated effort towards enabling renewable electrification.

And let’s not forget the potential of hydrogen vehicles (despite their higher cost currently). Advances in decarbonised hydrogen production have the potential to change the way we look at zero-emission vehicles. 

Or perhaps transport may shift behaviour away from car ownership overall…

If you want to stay ahead of the game and embed sustainability into every aspect of your investment strategy, now is the time to act. Get in touch with our experts Sofia Lencastre or Emiko Caerlewy-Smith to find out more.