EV market to remain modest, even if oil price skyrockets

At oil prices of $200 a barrel, the worldwide electric and hybrid-electric vehicle market will reach only 4% of global sales in 2020, according to a new report from Lux Research.

The clean energy researcher modelled demand for electric vehicles and hybrid-electrics based on how fuel savings would balance higher vehicle costs at a series of oil prices over the next 10 years. The model accounts for declining vehicle costs as the alternative transportation market grows in scale.

The report may temper the great expectations for this industry, evidenced most recently by the successful initial public offering of A123 Systems, a Massachusetts lithium-ion battery maker. Since going public, 24 September, the company’s shares had gained 11% through Tuesday. The Lux report calls lithium-ion Log in to read complete article.

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