5 Electrifying Trends You Must Not Miss From 2021

The past year will be remembered by most people for the pandemic’s continuing global effects on our lives. But there have been other standout phenomena over 2021, and one of the most significant has been the coming of age of electric vehicles. While 2020 showed burgeoning potential, 2021 underlined that this was no flash in the pan and hinted at an impending tsunami of change in the automotive industry over the next year or two. Here are five of the key trends in electrification from the last 12 months that you must not miss.

Massive Growth In European EV Sales

The most obvious sign that electric vehicles are coming, ready or not, has been from the huge and continual growth in sales. In an automotive market badly crippled by the chip shortage just as it was recovering from the Covid lockdowns of 2020 and early 2021, EVs managed to post increased sales and share every single month in the European Union and UK in 2021.

In the UK, BEVs had doubled their share and volume in November 2021 compared to 2020, while plug-ins were at 23% of the European market in October, having made up just 4% in October 2019. The Tesla Model 3 even managed to be the number one selling car in Europe in September. In fact, some pundits estimate that EVs will be the majority of European car sales as soon as 2023. There will be some impediments along the way, such as the fact that charging infrastructure growth lags way behind EV sales. But if the growth trends continue, the majority of new cars will be EVs in just a few years.

It’s Not Just About Tesla Anymore

Manufacturers other than Tesla have started taking EVs seriously in 2021. Alongside the overall market growth, a number of brands have emerged or reemerged as major players. Most recently, BMW, one of the original proponents of EVs with the i3, has returned to the fold with the i4, iX, and iX3. Whereas the last of these three is basically the X3 SUV with an electric drivetrain, the i4 and iX are pure BEV designs that are part of a new electric “Neue Klasse”. BMW is still hedging its bets with ICE, but these new cars show real intent again to gain share in the BEV space, and the Mini Electric has been doing well too.

At the other end of the price scale, formerly British brand MG has been redefining the value end of the electric market with the MG5 EV, MG5 EV Long Range, and MG ZS EV Long Range. The latter in particular, with its 273-mile WLTP range and strong features for a very keen price, set a new benchmark for EV affordability when it was released at the end of 2021.

MG is now a Chinese brand, but Korea, in stark contrast to Japanese automakers, is increasingly focusing on electrification. Hyundai launched its standalone BEV-only IONIQ brand in 2021 with the IONIQ 5, and just in the last week shut down its fossil fuel engine development team to focus on electric. Sister brand Kia released the excellent EV6 based on the same platform as the IONIQ 5, with further models due in 2022. The company can see the direction the market is going and is facing the electric future full on.

And I haven’t even mentioned how Volkswagen Group brands have been spawning great EVs throughout 2021, with more to come in 2022. Nor have I touched upon the Chinese brands other than MG waiting in the wings to pounce. The avalanche of new electric cars in 2021 is set to continue with gusto in 2022.

Hydrogen’s Days Are Numbered

Hydrogen has been touted as the future for emissions-free transportation for decades. Its status of constantly being “the next thing” without ever actually arriving has led some to dub it “hopium” and its proponents “hopium addicts”. But there have been some clear signs in 2021 that some companies are now giving up on that hope, at least for passenger vehicles. Honda discontinued its Clarity FCV fuel cell car in mid-2021 due to slow sales. VW’s Herbert Diess has ruled out any interest in hydrogen for his company. Just a few days after the reports of Hyundai ceasing fossil fuel engine development, the company signaled it has put the development of its Genesis fuel cell vehicle on hold.

Even the biggest hydrogen evangelist, Toyota, has faltered in its commitment. In December, the Japanese giant announced it would be building 30 BEV models by 2030, with prices announced for its first one, the bZ4X, which will launch this year. A new version of the Toyota Mirai fuel cell car did arrive at the beginning of 2021 and Toyota has also announced FCEV versions of its Prius and Corolla models. But perhaps the time has come to abandon hopium all ye automakers who wish to remain relevant over the next decade, at least for passenger cars.

Local Battery Production Is Essential

Over the last year, there has been increasing – and welcome – focus on the total life carbon footprint of vehicles. On the one hand, this has been driven by attempts to discredit the green credentials of BEVs (see below), but it has quite rightly highlighted how polluting global supply chains can be. In 2020, China produced 77% of global lithium-ion battery supplies and is expected to increase its share even more when figures are announced for 2021. China already has an even greater share of production of raw elements like cobalt, even though it doesn’t dominate their mining.

Obviously, with China’s very dirty electricity grid and the need to ship these batteries around the world, its dominance is not good for the carbon footprint of EVs that are made with Chinese power cells. This is why the 2021 announcements of local battery gigafactories from Volkswagen Group and Stellantis have been essential. The partnership between Volvo and Northvolt is similarly important, as is the UK’s Britishvolt startup. These companies need raw materials too, putting considerable emphasis on the huge lithium deposits in the Upper Rhine Valley of Germany that Vulcan Energy Resources hopes to exploit, as well as the potential lithium supply in Cornwall that Cornish Lithium and British Lithium are both targeting. For EVs to be truly green, as much production as possible needs to be brought more locally, with batteries and their constituent elements top of the list.

War Of Words Hots Up

As EV sales have burgeoned, the propaganda battle has raised tempo as well. There was a marked increase in media coverage of EVs in 2021, some of which was quite biased and negative. There are clearly huge corporate interests at stake, on both sides. The traditional fossil fuel industry is under threat from a decreased need for its products as vehicles electrify, whereas electricity supply companies look to benefit greatly from increased demand. Just as EVs have sold incredibly well over 2021 and are likely to sell even better in 2022, the propaganda is also going to get more heated. So if you thought 2021 was acrimonious, watch out for the next 12 months.