The Green Revolution: Electric Vehicles Lead Clean Energy Investments in 2023

In a year marked by a growing environmental consciousness, global investments in clean energy reached an impressive $1.8 trillion in 2023, according to BloombergNEF’s survey. Among the surprises in this report, the leadership of electric vehicles (EVs) stands out, receiving a significant share of this amount.

Electric Vehicles: A Rising Revolution

EVs claimed the top spot in investments, absorbing $634 billion, a remarkable 36% increase compared to the previous year. This surge indicates a clear global interest in electric mobility. The forecast for 2024 points to a record of 16.7 million electric cars and one million commercial EVs on the roads, representing approximately 20% of the global passenger car market.

China, with almost 60% of the projected global sales in 2024, continues to lead the way in electrification. While Europe and the United States face challenges such as reduced tax incentives and supply chain issues, the EV market is expanding vigorously.

Challenges and Opportunities: The Role of Innovation

Despite the progress, current investments still do not fully meet the needs of the transition to a low-carbon economy. To achieve the goal of limiting global warming to 1.5°C by 2100, investments of around $4.8 trillion per year are required. The report emphasizes the importance of government actions, citing the U.S. Inflation Reduction Act as a positive example.

The transition is also reshaping the job market, with significant growth forecasts for positions in solar energy and wind turbine maintenance.

Brazil and the Race for Lithium

Brazil emerges as a potential strategic supplier of lithium, a crucial raw material for EV batteries. Projects like Vale Jequitinhonha, driven by the Lithium Valley Brazil initiative, may position the country competitively in this exponentially growing market.

Despite fluctuations in international lithium prices, Atlas Lithium, based in the United States, remains optimistic, highlighting the quality and competitive cost of the Brazilian product. Production in the Vale do Jequitinhonha is expected to start in the fourth quarter of 2024, contributing to the growing global demand for lithium.

Outlook and Challenges

The BloombergNEF report underscores the importance of accelerating efforts to achieve more ambitious goals in the transition to a cleaner energy matrix. At this crucial moment, collaboration between the public and private sectors is essential, driving innovations and investments that will shape the sustainable future we all aspire to.

Font: EPBR