Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Japan is set to bid adieu to petrol cars by 2030 and shift to hybrid or electric vehicles (EVs) in an attempt to be carbon neutral. In a span of 15 years, Japan is aiming for 100pc electrification which would mean the end of gasoline powered cars in the Japanese auto market. Japan will be joining countries like UK and France that have the same notion of reducing carbon emissions. 


France has plans to remove all gasoline powered vehicles from their market by 2040 while the UK is set to do the same by 2030. Japanese PM Suga first hinted about his plan to reach net zero carbon emissions in October. Carbon emissions are already declining in Japan but to achieve the goal by 2050, the speed would have to pick-up, reported media. 


At present, only 29pc of Japan’s new vehicle registration is for EVs and hybrids. Japan will map out a concrete plan to support EVs by the end of the year. 


Several global car manufacturing companies are focusing on EVs taking the environment into consideration. 


With the push towards electrification of vehicles, demand for aluminium alloys and nickel for batteries is bound to rise. Aluminium is the preferred choice of metal as it is light weight while nickel is already in demand after Tesla’s Elon Musk created a buzz for the battery material to be used in EVs. 


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