Germany, Italy Lead Europe's EV Demand Drive in 1Q

Battery electric vehicle registrations increased year on year in the first quarter of 2021, spurred by gains in Germany and Italy, according to the European Automotive Manufacturers Association (ACEA).

New battery electric vehicle (BEVs) registrations rose by 59.1pc to 146,185 cars, up from 91,864 in the first quarter of 2020. The market share of BEVs rose to 5.7pc last quarter, up from 3.7pc in the first quarter of 2020. Registrations were down by 41pc from 248,099 new cars in the fourth quarter of 2020, although there is a seasonal effect on new registrations, ACEA data shows.

Germany, the largest EU BEV market, saw a sharp rise of 149pc to 64,809 new registrations, up from 26,030 in January-March 2020. In Italy, registrations increased by 145pc, up to 13,266 last quarter from 5,401 in January-March 2020.

Registrations increased despite a second wave of Covid-19 infections and lockdown measures in the countries, ACEA noted.

"It is clear that the electrification of mobility is happening at pace, as the figures indicate. We are in the midst of an energy transition revolution, in the race to a low-carbon world. Batteries are at the very heart of that narrative," Britishvolt chairman Peter Rolton told Argus today. "The local supply of batteries, with as short a supply chain as possible, is imperative to success."

Demand for BEVs in Europe is expected to drive consumption of battery metals such as lithium and nickel along with chemicals such as cobalt and nickel sulphate in the coming years. In anticipation of increased demand, several battery giga-factories are in development across the region, including Britishvolt in Northumbria, UK and Northvolt in Ett, Sweden.

Other EU countries had more mixed results. France, the second-largest EU market, recorded a more modest 17.5pc rise in registrations to 30,491, up from 25,959 in 2020. Spain, the Netherlands and Sweden saw registrations fall by 12.6pc, 47.5pc and 9.4pc, respectively, in the first quarter, ACEA said.

Other non-EU European countries recorded sharp increases in BEV registrations. In the UK, new BEV registrations increased by 74.1pc to 31,779, up from 18,256 in the first quarter of 2020 and Norway, the world leader in EV registrations by market share, recorded a 17.2pc rise to 19,159 new cars.