Rapid progress predicted: Electric vehicles in Latin America may reach 20 million by 2030
Rapid Growth of Electric Mobility in Latin America and the Caribbean
The region of Latin America and the Caribbean is experiencing a significant surge in electric mobility, with the number of electric vehicles (EVs) and electric buses growing rapidly. A study conducted by the Latin American Energy Organisation (OLADE) has identified three growth scenarios for the EV fleet in the region by 2030: Conservative Scenario (5 million EVs), Intermediate Scenario (10 million EVs), and Optimistic Scenario (20 million EVs).
Currently, the region has 4,848 public charging stations, with Brazil and Mexico leading the way with the highest number of stations. However, to meet future demand, the region will need to substantially increase its charging network. On average, Latin America and the Caribbean have 3.3 charging stations for every 100 electric vehicles.
By 2030, an optimistic scenario projects that the region could have 20 million EVs on the road. In this scenario, 46,943 GWh of energy would be required, equivalent to 3% of the current electricity generation in the region. To achieve this, an installed capacity of 11,405 MW in renewable energy and an investment of 10 billion dollars would be necessary.
In the Intermediate Scenario, 23,472 GWh of electricity would be needed, requiring an investment of 5 billion dollars in renewable energy. In the Conservative Scenario, the energy required would be 11,736 GWh, and an investment of 2.5 billion dollars in electricity generation infrastructure would be needed.
One key strategy to overcome the charging infrastructure challenge is to promote home and workplace charging. Policies should be implemented to encourage private investment in charging stations, such as tax exemptions and subsidies.
Latin America surpasses Europe and the United States in terms of electric buses per million inhabitants. Chile and Colombia lead in the electric bus segment, with 1,849 and 1,590 units respectively. The regional fleet of electric buses has increased by 160% over the past three years.
In 2023, Latin America has already shown significant progress in the adoption of electric vehicles, with the fleet growing 14-fold in the past four years. During the first half of 2024, the electric vehicle fleet grew by 60%, with countries like Brazil, Mexico, Costa Rica, Colombia, and Chile leading the electrification of transport.
The future of electric mobility in the region depends on various factors, including public policy adoption, charging infrastructure development, and electric vehicle availability. The countries in Latin America most involved in electromobility include Brazil, where cities like Goiânia are expanding their electric bus fleets with orders for long electric articulated and bi-articulated buses from Volvo Buses to serve the public transport system. These efforts form part of a wider push for decarbonization of urban transportation in Brazil.
Furthermore, tests for electric articulated buses are underway in Colombian Bogotá and Mexico City, indicating growing regional adoption. In terms of expanding stationary charging stations, while no explicit expansion plans for charging infrastructure were found in the search results, the significant investments in electric public transport vehicles imply an accompanying need for increased charging infrastructure to meet the rising demand in these cities.
The Latin American electromobility market is expected to experience significant growth from 2025 to 2032, partly driven by electric two-wheelers and supportive of an overall increase in EV adoption and infrastructure development. Costa Rica has the highest per capita adoption rate of electric vehicles in the region, with 34.3 electric vehicles per 10,000 inhabitants.
The growth of electric mobility would benefit the environment, drive technological innovation, and investment in infrastructure. It's an exciting time for electric mobility in Latin America and the Caribbean, as the region moves towards a more sustainable and innovative future.
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