Data and analytics company GlobalData said in a report the global EV market was expected to grow at a compound annual growth rate (CAGR) of 15.6% through to 2022 when global EV sales were forecast at more than 3 million vehicles, driven by the growing popularity of EVs across the Asia-Pacific region and Europe.
"This in turn will result in increased consumption of lithium and support investment in mine expansions across Chile and Australia and new mine development in Chile, Australia, Argentina and Canada," GlobalData said.
Unsurprisingly, China is expected to account for more than half the total EV market share and grow three-times faster than the US over the next five years to 1.5 million by 2022 from 579,000 in 2017.
Senior mining analyst Vinneth Bajaj cited China government policies and subsidies, which created a lucrative market for industry investments.
He said many governments were encouraging the adoption of EVs by providing tax incentives and subsidies to manufacturers and end-users.
"Additionally, efforts to reduce greenhouse gas emissions have led to much technological advancement in EVs and made them a viable and safe alternative to traditional vehicles," Bajaj said.
Globally, 1.1 million new EVs were sold in 2017, with more than 50% sold in China, 17.3% in the US, 5.4% in Norway, 4.8% in Germany and 4.1% in the UK.
In the half-decade to 2022, GlobalData forecasts EV sales to grow at a CAGR of 9.2% in the US, 7% in Norway, and 8.2% in Germany and Japan.