Transition to Renewable Energy in the Automotive Industry: Conventional vs Electric Vehicles

Introduction

In the ever-evolving story of the automotive industry, the shift towards renewable energy is a game-changer. It’s transforming how vehicles work and how we consume energy. The clash between internal combustion engine cars and the growing wave of electric vehicles forces the industry to redefine itself. This is where innovation and sustainability come together. Our research deepens into this complex transition, addressing global carbon neutrality demands and a strong environmental commitment.

This study responds to the urgent call for climate action and the demand for eco-friendly transportation. Electric vehicles are challenging the traditional dominance of internal combustion engine cars, ushering in a revolutionary shift. We delve into the economic, societal, and infrastructural aspects of this transformation, examining market forces and regulatory frameworks to offer insights that contribute to shaping a sustainable future for the automotive sector.

State and Trends in the Automotive Industry

The automotive industry is undergoing a transformative shift driven by global factors such as market changes, regulatory demands, and technological advancements. Key trends since 2017 include the rise of battery-powered and hydrogen fuel cell cars, connectivity, digitization, and emerging market growth. The future envisions electric, autonomous, shared, connected, and regularly updated vehicles, necessitating renewable energy sources. The industry faces challenges from high-tech entrants, impacting workforce skills. Sustainable development is crucial, with regulatory pressure and consumer preferences aligning with green initiatives. Life Cycle Assessment reveals the environmental impact of cars, emphasizing the importance of considering emissions throughout a vehicle’s life cycle. The carbon footprint and initiatives like the Vehicle Emissions Impact Indicator underscore a growing focus on environmental sustainability in consumer decision-making.

An Internal Combustion Engine Vehicle

ICEV is a heat engine where fuels are ignited with an oxidizer (usually air) in a combustion chamber. Then, the chemical energy is transformed into heat energy and kinetic energy to propel a vehicle. Conventional ICEV is dependent primarily on petroleum-based fossils like gasoline, diesel oil, liquefied petroleum gas (LPG), and compressed natural gas (CNG) (Balat and Balat, 2009). It has no Electric Motor (EM) to support the fuel economy.

Current State of Internal Combustion Engine Vehicle

Today’s mobility depends highly on internal combustion engines (ICE), vehicles’ main propulsion source. Currently, 99.8% of global transport is powered by ICEs, and 95% of energy transport comes from liquid fuels made from oil. ICE are widely used due to their high power density, low cost, robustness and ability to operate with various high energy fuels derived from multiple sources. Approximately 80 million vehicles are sold annually, and about 95% of transportation is provided by gasoline or diesel cars. Some other powertrain systems have appeared in an attempt to reduce energy dependence on fossil fuels and reduce emissions. The main alternatives are hybrid electric vehicles (HEVs), battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs). However, these powertrain systems still have numerous barriers to their large-scale dissemination. The main limitations are battery charging time, vehicle range, high vehicle costs, and lack of supply or recharge infrastructure. 
In this way, ICEVs (internal combustion engine vehicles) will still be protagonists in the coming decades and need continuous improvements. For at least the next 20 or 30 years, the ICE will still be present in vehicles 

Electric Vehicles

Electric vehicles (EVs) are a unique type of transportation that utilizes electric motors instead of traditional internal combustion engines fueled by gasoline or diesel. Unlike their conventional counterparts, EVs derive power from stored electricity in batteries or other energy storage devices. This innovative approach to propulsion sets EVs apart and contributes to a greener and more sustainable future.

Current State of Electric Vehicles

The automotive industry is slowly transitioning from internal combustion engine (ICE) vehicles to electric vehicles (EVs) in response to the global warming issues caused by tailpipe emission of GHG from ICE vehicles. EVs produce near-zero GHG emissions during their road operation; furthermore, they are more energy efficient and require much less maintenance over their life. In 2018, the number of EVs on US roads was around 1 million; however, it is projected to increase to almost 19 million in 2030 (Cooper and Schefter, 2018). The annual sales volume of EVs in the United States may exceed 3.5 million in 2030, which will be 20% of annual vehicle sales compared with only 2% in 2018. Globally, the number of EVs on the road is projected to reach 125–220 million in 2030, compared with only 3 million in 2017 (IEA Report)

Evaluating Market Dynamics: EVs and ICEVs

Internal Combustion Engine Vehicles

In 2021, the worldwide internal combustion engine (ICE) market was approximately worth USD 58,514.15 billion and was predicted to reach USD 93,615.18 billion by 2029, growing at a CAGR of 6.05% between 2022 and 2029 and showing tremendous growth. The internal combustion engine market size was valued at USD 235.3 billion in 2022 and will grow at a CAGR of 5.9% from 2023 – 2029. It will likely expand further as demand for passenger and commercial vehicles rises in established and emerging markets. 

Electric powertrains are increasingly coupled with ICE to enhance vehicle fuel efficiency, which is driving industry development. The demand for ICE is growing exponentially in industries such as agriculture, construction, mining, and power generation. The global lack of EV infrastructure availability is partly responsible for the ICE market’s growth.

The greenhouse gas emissions (GHG) associated with vehicles using fossil fuels are higher than that of an electric vehicle, even during its manufacturing. Generally, carbon pollution is produced more while manufacturing a typical electric vehicle than making a gasoline car. Although greenhouse gas emissions from EV production and disposal are greater, overall greenhouse gas emissions from EVs are still lower than those from gasoline-powered vehicles.

Impact of the Russia-Ukraine War on the Internal Combustion Engine Market

The Russia-Ukraine war is expected to have a negative impact on the internal combustion engine industry. The war caused severe disruption to the automotive value chain and urged OEMs and suppliers to discontinue trade with Russia. Due to a lack of parts from Ukrainian suppliers, many automotive OEMs in Eastern Europe and Europe have paused or reduced their production. However, steady improvement in the political and economic conditions across these nations is likely to benefit the market over the coming years.

Development in Internal Combustion Engines

• From the perspective of ICE technologies, ICEs still have significant potential for improvement in terms of controlling CO2 and pollutant emissions. 
• Higher ICE thermal efficiencies. Thermal efficiency is the primary focus of many major ICE research centers worldwide. The short-term goal of these research centers is to achieve an effective thermal efficiency of 60 %, whereas, in the long term, they hope to achieve a thermal efficiency of 85%.
• The rapid adoption of electronic control in Internal Combustion Engines (ICEs) introduces innovations like electronic water pumps,  electronically controlled unit injectors, electric turbochargers, and exhaust gas recycling (EGR), refining control and boosting efficiency.
• Global regulations tighten energy consumption and emissions, aiming for significant reductions in fuel consumption and CO2 emissions. Real driving emission tests for light vehicles are imminent, poised to cut pollutant emissions from Internal Combustion Engines (ICEs) effectively.
• The continuous development of emission control technologies for vehicles. The emission of harmful substances from ICEs is already approaching zero, and the emission of major pollutants has been reduced by approximately 90%. Furthermore, owing to the exacerbation of energy and environmental problems on a global scale, there is an urgent need to reduce the energy consumption of ICEs and the CO2 emissions by ICEs for the automotive industry. The CO2 emission reduction schedules for some of the major countries and regions worldwide are shown in Figure below. In China, the automobile industry has to reduce CO2 emissions from passenger cars by 5% annually.

Electric Vehicles

Global Electric Car Sales Overview:

• Q1 2023 shows a positive trend, with nearly 14 million electric cars estimated to be sold globally.
• This marks a 35% increase from 2022, reaching an 18% global market share (up from 14% in 2022).

United States Electric Car Market:

• Q1 2023: Over 320,000 electric cars sold, a 60% increase from Q1 2022.
• 2023 projection: Expecting over 1.5 million electric car sales, achieving a 12% market share.

China’s Electric Car Market:

• Q1 2023 started slow but quickly recovered, with over 1.3 million electric cars sold.
• 2023 outlook: Anticipating a 30% increase from 2022, reaching 8 million sales and a 35% market share.

European Electric Car Market:

• Q1 2023: 10% increase in electric car sales compared to Q1 2022.
• 2023 forecast: Expecting over 25% growth, with one in four cars sold in Europe being electric.

Global Electric Car Sales Outside Major Markets:

• Projected 900,000 sales in 2023, a 50% increase from 2022.
• India’s Q1 2023 sales doubled compared to the same period in 2022.

Development in Electric Vehicles

Accelerated EV Development for Energy and Environmental Solutions:

• Countries focus on EVs, especially battery electric vehicles (BEVs), to reduce oil dependence and environmental pollution.
• Addresses energy crisis and environmental issues, with research emphasizing transportation expansion, cost reduction, and efficient charging strategies.

EV Approval Plans and Charging Infrastructure:

• Approval plans include acquisition programs to boost EV interest and enhance public charging infrastructure.
• EV-grid integration is facilitated by technological showcases, leading to a proliferation of charging stations, categorized as private, non-private, medium (levels 1 and 2), and fast charging (levels 3 and DC).

Future Charging Stations:

• Future developments include commercial locations with extensive charging ports, resembling petrol stations for electric cars.

Wireless Innovation and Circular Economy:

• Wireless innovation is crucial for the future adaptability of electrical equipment.
• Progressive developments span the entire value chain, covering research, oil production, battery design, and overall sustainability, including sorting, reuse, and recycling.

Decarbonization Impact:

• As energy use and electricity generation carbon intensity decrease, EVs contribute to decarbonizing the transportation sector.
• Shift in well-to-wheel (WTW) greenhouse gas emissions, potentially leading to carbon neutrality in the EV fleet.

Challenges for EV Technological Development

Renewable Energy Integration in the Automotive Industry

As far as the current scenario of the automobile industry is concerned, it is going through a challenging situation considering many aspects like its environmental, social, economic impact etc. If the fundamental problems are considered, they can be categorized into four major issues, which are:

• durability
• huge and heavy material usage
• higher fuel consumption and
• environmental pollution.

The concept of ‘Sustainable and Renewable Development’ is introduced to overcome the abovementioned issues. 

The main aim of automobile producers is to restrict fuel use and reduce the usage of conventional energy sources, i.e., to control the carbon footprint of the automotive industry, considering the environmental issues.

The Shift to Electric Vehicles

The significant outcome of this concept is the recent bulk use of electric vehicles worldwide. Electric cars seem to save convention by not taking the fuel, but the scenario is quite different. Electric cars need charging for their battery, charging stations need electricity to provide battery charging,

and finally, these stations create additional pressure on thermal power stations. Again, conventional energy sources like coal and diesel are burnt. So, they are saving energy in a small amount, which is not significant to restrict the hazardous impacts of automobiles

on the environment. It would be fascinating if thermoelectric materials could be introduced into vehicles. In 2011, researchers presented the idea of putting thermoelectric materials in exhaust pipes, which can generate a significant amount of electricity and enhance the

fuel efficiency of vehicles (Matheson, 2014). Using thermoelectric materials on electric car rooftops, powered by solar energy, can supply electricity for interior lights, music systems, wipers, central locking systems, and sensors. These lightweight materials contribute to sustainability. The regenerative braking system, storing kinetic energy for later use, extends the interval between charges, significantly enhancing energy efficiency in electric cars. Together, these innovations maximize overall vehicle energy efficiency.

The Automotive Industry Contribution to the Economy

The automobile is a pillar of the global economy, a main driver of macroeconomic growth and stability and technological advancement in both developed and developing countries, spanning many adjacent industries.

The automotive industry significantly contributes to the economy by embracing sustainable energy solutions, including nuclear power and solar power. The transition to plug-in electric vehicles and plug-in hybrid electric vehicles, along with the integration of modern engines, underscores the sector’s commitment to innovation and economic growth. This shift toward diverse power sources promotes environmental sustainability and creates jobs in manufacturing and research, reinforcing the industry’s role as a key player in shaping a resilient and eco-conscious economy.

Economic & Environmental Implications

The transportation sector is a major contributor to greenhouse gas emissions, with fossil fuel-powered vehicles being the primary culprit. As the world grapples with climate change, transitioning to renewable energy sources is crucial. In the automotive industry, this transition is manifested in the growing popularity of electric vehicles (EVs) compared to conventional gasoline-powered cars. This shift has significant economic and environmental implications that deserve careful consideration.

Economic Implications:

• Job displacement and creation: The EV transition may disrupt traditional automotive sectors, causing job losses in gasoline engine and transmission manufacturing. Yet, opportunities in battery production, EV assembly, and charging infrastructure will arise, potentially resulting in a net job gain in the long term. Proactive workforce reskilling and upskilling initiatives are crucial for a smooth transition.
• Supply chain shifts: The reliance on new materials like lithium for batteries could create new economic dependencies on geographically concentrated resources. This necessitates diversifying supply chains and ensuring responsible sourcing practices to avoid environmental and social repercussions.
• Infrastructure costs: A robust charging infrastructure for EVs will require significant upfront investment. Public-private partnerships and innovative financing models will be crucial to overcoming this hurdle and ensuring equitable access to charging facilities.

Environmental Implications:

• Reduced greenhouse gas emissions: EVs produce zero tailpipe emissions, offering a significant advantage over conventional cars in mitigating climate change. However, lifecycle emissions associated with battery production and electricity generation must be addressed through cleaner energy sources.
• Air quality improvement: EVs contribute to cleaner air by eliminating emissions of particulate matter and nitrogen oxides, improving public health outcomes, especially in urban areas.
• Resource depletion and pollution: While EVs are cleaner, battery production and disposal pose environmental challenges. Responsible sourcing of raw materials, developing closed-loop recycling systems, and exploring alternative battery technologies are crucial for sustainable EV adoption.

Overall, the transition to renewable energy in the automotive industry presents a complex picture with economic and environmental considerations. While challenges exist, the potential for long-term benefits regarding job creation, climate mitigation, and cleaner air is undeniable. Addressing the economic disruptions and environmental concerns will be essential for a smooth and sustainable transition.

Policy & Regulations

The transportation sector is a significant source of greenhouse gas emissions, accounting for around 27% of global emissions in 2019. Many governments worldwide are promoting the transition to renewable energy in the automotive industry to address this challenge. This means moving away from conventional gasoline and diesel vehicles towards electric vehicles (EVs) and zero-emission vehicles (ZEVs).

Several policy instruments can be used to promote the transition to renewable energy in the automotive industry. These include:

• Zero-emission vehicle (ZEV) mandates: These mandates require automakers to produce a certain percentage of ZEVs, such as EVs or hydrogen-powered cars.
• Tax incentives: Governments can offer tax incentives to consumers who purchase EVs or other ZEVs.
• Investment subsidies: Governments can provide subsidies to businesses that invest in producing EVs or other ZEVs or developing charging infrastructure.
• Public procurement: Governments can commit to purchasing EVs and other ZEVs for their fleets.

Policies to promote the transition to renewable energy in the automotive industry are having a significant impact. For example, California’s ZEV mandate has helped make EVs more affordable and widespread. As a result, California is now the largest EV market in the world.

Challenges in Transitioning

The transportation sector is one of the most significant contributors to greenhouse gas emissions, and the transition to renewable energy is essential for mitigating climate change. While electric vehicles (EVs) offer a promising solution, several challenges need to be addressed to achieve widespread adoption of EVs.

Infrastructure Development and Charging Stations

One of the primary challenges in transitioning to EVs is the limited availability of charging infrastructure. The widespread adoption of EVs depends on a robust and reliable charging station network, especially for long-distance travel. Expanding charging infrastructure requires substantial investments in public and private sectors and strategic planning to ensure adequate coverage across urban, suburban, and rural areas.

Battery Technology and Range Anxiety

Battery technology is crucial for EV performance and range. Despite advancements improving energy density and range, range anxiety persists among potential buyers. Addressing this concern requires further advancements in battery technology to extend EV range and reduce charging times.

Cost Considerations and Affordability

EVs are currently more expensive than conventional gasoline-powered vehicles due to the higher cost of battery technology. This price gap can be a barrier for many consumers, particularly those in lower income brackets. Government incentives, tax breaks, and subsidies can help bridge this price gap and make EVs more affordable for a broader range of consumers.

Supply Chain and Critical Raw Materials

The production of EVs and their batteries heavily relies on critical raw materials, such as lithium, cobalt, and nickel. The ethical sourcing, sustainable mining, and secure supply of these materials are essential to ensure the long-term viability of the EV industry.

Consumer Perception and Behavior

Public perception and acceptance of EVs are crucial in their adoption. Dispelling misconceptions and addressing concerns about range, charging, and performance can help increase consumer confidence and encourage the transition to EVs.

Conclusion

The automotive industry is currently undergoing a critical phase as it transitions from traditional fossil fuel vehicles to electric ones, driven by the urgent need to combat climate change and reduce carbon emissions. Although internal combustion engine vehicles (ICEVs) still dominate the market, there has been significant growth in electric vehicles (EVs) powered by advanced Lithium-Ion Batteries. However, this transition is not without its challenges, such as the need for infrastructure development, addressing the limitations of electric vehicle batteries, and navigating shifts in economic dynamics. Policy interventions, supported by organizations like the International Energy Agency and the International Renewable Energy Agency, are crucial to promoting the adoption of renewable energy technology and sustainable practices in the automotive sector. Overcoming challenges demands a comprehensive approach, addressing economic and environmental implications. This involves reskilling the workforce for renewable technologies and ensuring responsible resource management.

Despite challenges, the shift promises long-term benefits, including job creation, climate mitigation with renewable sources, and cleaner air. Policy interventions and technological advancements are crucial for a sustainable automotive future, emphasizing clean energy, electric grids, and renewable resources to transform power grids and reduce combustion gases from diesel engines and conventional vehicles.