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MBN USA

April 20, 2024

Global sales of electric vehicles increased by 30% in 2023 over 2022

By Suzanne Beckham Squyres

According to the International Energy Agency’s (IEA) Global EV Outlook 2023, sales of electric vehicles (EVs) continue to rise. The IEA expects some 31 million EVs to be sold worldwide in 2027, up from 10.5 million in 2022. Kelly Blue Book estimated that 7.6% of vehicles sold in the United States in 2023 were electric, up from 5.9% in the year before. That portion is expected to reach 10% by the end of 2024.

Although the EV market has experienced many ups and downs in consumer satisfaction and acceptance, global sales of EVs increased by 30% in 2023 over 2022. Toyota Motor North America Inc. views the upswing in sales as a harbinger of changing attitudes toward EVs.

“Toyota’s multi-pathway approach to electrification accelerated in 2023 with even more vehicle choices to meet our customer’s lifestyle and budget,” said Jack Hollis, executive vice president, Toyota Motor North America, and president of Toyota Motor Sales. “By 2026, we plan to offer electrified options for every Toyota and Lexus vehicle in the United States.”

Last year, Toyota announced that it was developing solid-state batteries that can power a car for 750 miles before needing a recharge. The current average range is about 300 miles. Toyota’s battery will debut in the company’s Lexus models in 2028, the same year the battery is scheduled for mass production. The company is also working on an internal combustion engine fueled by hydrogen, the most abundant element in the universe.

The battery conundrum

As demand for EVs climbs, so does the need for the critical elements that go into the batteries, such as lithium, nickel and cobalt. These minerals are concentrated in only a few countries, which can be disruptive to supply chains for many reasons, such as weather, geopolitics and varying technologies.

Currently, the United States accounts for about 10% of global battery cell production, while China produces almost 70%.

The BMW Group is working to change the disparity in battery production, teaming up with Automotive Energy Supply Corp. to open a battery cell factory in Florence, South Carolina, in 2026. The facility will produce cylindrical lithium-ion battery cells specifically developed for the sixth generation of BMW eDrive technology. Electricity for production of the battery cells and cathode raw material will come exclusively from renewable sources.

“The BMW Group pursues a globally balanced procurement strategy in the three main geographical regions of the world,” said Joachim Post, member of the board of management, BMW AG, purchasing and supplier network. “Our battery cell supplier in the U.S. will source key primary materials from Canada going forward. We are pleased that Canada is playing a strong role in establishing a robust and efficient battery cell supply chain for the BMW Group in North America.”

Charging ahead

According to the U.S. Department of Energy (DOE), about 60,000 public charging stations with just over 160,000 charging ports existed across the nation as of December 2023. The DOE plans to build a national network of 500,000 charging ports by 2030. There is no precise number of private charging stations. Since it takes anywhere from 20 minutes to half a day to charge an EV — depending on the size of the battery and the speed of the charging point — manufacturers are partnering with gas stations to add charging stations.