What a country’s evolving EV ecosystem needs to drive its transition

The EY EV Country Readiness Index assessed each country’s capabilities and progress concerning the transition to an electric vehicle (EV) future. These 14 countries were then ranked based on how they scored in the supply, demand and regulatory parameters.

China’s high number of lithium gigafactories, reliable access to raw materials and a developed public charging infrastructure were some of the factors for ranking first in the Index. Interestingly, Norway ranked second. Its regulatory environment — which saw Norway having the highest EV penetration, with 72% of the cars sold in 2021 being EVs — was key for its high ranking. The US ranked seventh and it is only now beginning to see a shift toward electrification with the newly proposed government regulatory actions.

For countries to support this EV transition, governments will need to promote policies that increase investor confidence and prepare for long-term success. Continued R&D support for battery technology and production will be critical, along with securing access to raw materials. In a growing and evolving EV ecosystem, consistency will be fundamental. 

Key takeaways:

• China ranked first in the EY EV Country Readiness Index. China is likely to have capacity to produce nearly 1,000 GWh of lithium batteries by 2025 — more than twice the capacity of Europe by that time.
• Norway will discontinue the sale of new internal combustion engine (ICE) cars by 2025 — which is 10 years ahead of the EU target.
• The regulatory policies set up over the years by the leading countries in the Index have already established a market with rising EV demand and supply in those regions.

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