The electric car industry is booming. As a matter of fact, electric vehicles (EVs) are expected to number at least 125 million by 2030 around the world.

In Australia, similar predictions have been published with an expectation that the EV will represent 90% of all light commercial vehicles and cars in Australia by the year 2050

Electric cars are not new, having been the dominant type of car in US history. The first electric cars entered the scene in the late 1800's and early 1900s and were essentially horse-drawn carriages that were powered by batteries.

They were preferred over gasoline cars because they didn’t smell, vibrate, or emit the same amount of noise.

In the olden days, to start a gasoline car, the driver had to crank it manually and had to change gears when driving.

The introduction of the electric starter addressed some of the previous disadvantages of gas cars by making them easier to operate.

Electric cars lost their popularity by 1935 while the internal-combustion engine made by gas-powered vehicles took over the automotive market for the next several decades.

In the early 1900’s, Henry Ford had started the mass production of gas-powered cars making them much less expensive than the electric vehicles…half the cost.

In the 1960s and 1970s, interest in electric cars and alternatives to fueled vehicles was renewed due to the concerns over pollution and the increase in gas prices resulting from the OPEC oil embargo of 1973.

After the embargo and emissions regulations, the international market began an aggressive effort to develop electric cars with advanced batteries and other improvements. This effort resulted in the Chevy Volts and Tesla Model S’s currently seen today.

There is a whole slew of reasons why electric cars are booming in popularity and increasingly becoming the vehicle of choice for so many throughout the world. Some of the reasons are because of electric cars:

• *  Cost approximately one third less money to run than gas-operated ones.

• *  Are made of environmentally-friendly materials reducing air and noise pollution.

• *  Require much less servicing and are cheaper to maintain because they only have one moving part.

• *  Are safer because they are less likely to roll over due to a lower centre of gravity.

• *  Reduce the dependency on other countries for petroleum imports. For example, in Australia, electric cars can be produced from recycled materials and run on renewable energy sources.

• *  Are better for our health with reduced harmful exhaust emissions.

Although Australia has had a slow start getting into the electric car market, the Australian Energy Market Operator predicts that electric vehicles will make up about 19% of the market by the year 2036.

International markets and vehicle manufacturers are recognising and keeping up with the electric car boom. Many countries are working on a timetable where they will stop producing and selling vehicles powered by fossil fuels.

This shift towards electric vehicles will have a profound impact on the future of the oil economy, jobs, and even national tax systems.

When markets shift, there are always losses of some jobs but also the addition of others. This is no different for the automotive industry.

For example, while industries involved in the combustion engines market will see a reduction in jobs, opportunities will arise for new manufacturing and business opportunities in the electric vehicle arena.

New types of materials for lighter weight vehicles will be developed and introduced into the manufacturing process.

One of the new markets booming from the global shift to electric vehicles is the mining of lithium and other high-value minerals and metals which are expected to see rapid

It may also increase the development of active and passive solar and/or wind systems which are environmentally-friendly.

Companies will look at meeting these challenges and making investments in intellectual and physical capital.

Emerging technologies and processes will provide growth opportunities with direct and indirect positive impacts on local and national economies.

Some examples of enhanced or developing technologies are:

• *  Battery and electric storage with shorter re-charge times and longer vehicle range

• *  Software systems to manage the operation of these electric vehicles

• *  New alloys and man-made materials for both lighter weight and strength

• *  More efficient manufacturing resulting in lower per unit costs

Exciting times are ahead for Australia as well as other countries. Although previously the market did not embrace electric vehicles, some of the reasons why are now being addressed by the Australian government.

For example, the government is exploring ways to provide loans and discounted financing options.

The intent is to encourage consumers to purchase electric vehicles which currently are more expensive than a similar traditionally-fueled vehicle.

Also, Australia is looking to expand the manufacturing of these vehicles within the country which will help create jobs and lower overall costs to the consumer.