Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The market for electric vehicles (EVs) is growing rapidly—the International Energy Agency expects EV usage to grow from 4mn in 2018 to nearly 120mn by 2030.


According to the International Organization of Motor Vehicle manufacturers, an average of around 1900 lbs of steel is used in one vehicle. Advanced High Strength Steel (AHSS) is used in EVs to protect the batteries. This thinner, stronger steel allows for more battery space and increased driving range. 


Companies like ArcelorMittal produce steel with strength up to 2000 Mpa enabling manufacturers to pivot back to using steel for the car’s body compared to aluminum. Tesla currently uses a blend of steel and aluminum on its popular model 3. Even premium brands like Audi use the steel-aluminum blend in their A8 model allowing for reduced cost and higher strength. 


However, according to a data from electric Mobility Canada, EV sales in Ontario were 55% lower compared to the same period last year. Around 2,933 vehicles have been sold in 2019 compared to 7,110 last year. This is due to the cancellation of an EV rebate by Ontario’s provincial government. Despite a CAD$5,000 (USD$3,799) rebate from the federal government, sales in Ontario have still declined in 2019. On the other hand, Quebec and British Columbia have led in EV sales this year at 7pc and 10pc, respectively. The annual national sales rate is 3.5pc—well below the target of 10pc by 2025.


Yet, keeping in mind the holistic growth of the market, EVs will soon become commonplace and a fast-growing segment of the auto industry, with AHSS will be the material of choice. 


December 17, 2019: CAD$1 = USD$0.75

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