According to a recent economic insight report from the Commonwealth Bank of Australia (CBA), transport was responsible for 21 per cent of Australia’s total greenhouse gas emissions from January to June 2023 and road transport accounted for 85 per cent of national transport emissions. Hence, decarbonising transport is an important pathway to decarbonising the Australian economy.

Sales for electric vehicles (EVs) in Australia have been steadily increasing from less than 1 per cent in 2020 to 7.1 per cent, as recorded in October 2023.

The number of EV models available on the market has also doubled this year — with the introduction of low price Chinese models (retailing for below $40,000).

While concerns for the driving ranges and charging times of these vehicles remain on the rise, top of the line EVs within Australia have an average driving range of 450 kilometres.

Additionally, lower range models will still be able to cover the average Australian’s daily commute, as approximately 80 per cent of working adults travel less than 30 kilometres on a day-to-day basis.

A survey by Deloitte shows Australian consumers have concerns around charging cost, charging time, home charging and lack of public charging.

Currently, there are around 3,000 EV charging stations providing around 7,000 chargers — which is equivalent to one charger for 23 EVs.

The 3,000 charging locations currently available is less than half the 7,000 petrol stations in Australia, however, BNEF estimates EV charging capacity to increase by six times by 2030.

A potential obstacle to the build out of charging locations would include supply constraints on equipment to connect to the electricity grid.

CBA’s report also highlights three main differences between EV charging and refilling petrol:

1. Petrol refill rates are fast and constant, while EV charging rates varies from slow, fast and ultra-fast.
2. The availability of petrol is only at petrol stations. However, EV charging is available at home, car parks, work, EV charging stations and on the side of the street.
3. Petrol prices are constantly changing and highly unpredictable, however, electricity prices are typically more constant.

The electrification of transport will continue to boost demand for the mining and manufacturing industries as the creation of EVs, EV chargers, solar panels, as well as electricity generation, transmission and distribution equipment requires specific minerals — such as lithium and copper,

Find the full CBA Sustainable Economics reports here: https://www.commbankresearch.com.au/apex/researcharticleviewv2?id=a0NDo000000vxNW