If Australia switched to EVs, we’d be more reliant on China’s car factories, but wean ourselves off foreign oil

Australia has enormous reserves of coal and gasoline—however very little oil. Earlier than the twentieth century, this did not matter—trains ran on native coal. However as automobiles and vehicles have come to dominate, Australia has change into an increasing number of reliant on imported oil.

Imports now account for round 80% of whole refined gas consumption, the best degree on file.

If the circulation of oil stopped resulting from warfare or economic instabilityAustralia would have about 54 days value in storage earlier than we ran out. That may be a huge problem.

However as extra drivers change from petrol and diesel to electric carsthis equation will change. We are able to already see this in China, the place a speedy uptake of electrical autos has seen oil demand begin to fall.

On one degree, ending Australia’s dependence on international oil is sensible at a time of nice geopolitical uncertainty. However on the opposite, going electrical would result in extra reliance on China, now the world’s largest producer of EVs.

Lowering reliance on oil makes clear sense for local weather and nationwide safety causes. However going electrical must be executed rigorously, to make sure Australia is not reliant on only one nation.

Importing oil makes us weak

Lately, nearly all of Australia’s refineries have closed. The federal government spent billions retaining the Geelong and Brisbane refineries open, in addition to different fuel security measures, corresponding to boosting domestic fuel reserves and constructing more storage.

The final two refineries depend on imported crude oil, as Australian oil from the North-West Shelf largely isn’t suitable for native refining.

In consequence, Australia is extra reliant than ever on importing fuels from giant refineries in Asia corresponding to South KoreaSingapore and Malaysia. In 2023, round 45,000 megaliters of gas have been imported from these nations.

Nearly three-quarters (74%) of those liquid fuels are used in transport, throughout street, rail, transport and air transport. However street transport is the massive one—our automobiles, vehicles and different street autos use more than half (54%) of all liquid fuels.

This reliance presents clear energy security risks. If warfare, geopolitical pressure, financial turmoil or worth volatility slows or stops the circulation of oil, Australia’s cities and cities would grind to a halt.

In January, Australia had 30 days value of petrol. Our shops of all forms of oil are a bit larger, at 54 days value. However that is nonetheless nicely in need of the 90 days the Worldwide Power Company (IEA) requires of member nations.

Electrical energy made regionally

Shifting to electrical autos guarantees cleaner air and much decrease ongoing prices for drivers, as electrical energy is less expensive than petrol or diesel and maintenance is way much less.

However there’s one other issue—the power supply. Australia’s electrical energy is all produced and consumed inside its borders, utilizing native sources (solar, wind, water, coal and gasoline).

On this respect, electrical autos supply a lot better power safety. A warfare within the Center East or a trade war over tariffs wouldn’t convey Australia to a halt. That is one motive why China has so aggressively gone electrical—to end its soaring dependence on foreign oil.

Mainstreaming EVs in Australia will imply accelerating manufacturing of renewable electrical energy additional so we are able to energy not simply properties and business however cost cars, trucks and busestoo.

Doing this might increase our power safety, break our dependency on imported oil and drive down emissions.

EV manufacturing is increasing quickly with more modelsdecrease purchase pricesimproved battery charging occasions and growing client adoption.

Globally, over 17 million EVs (battery and plug-in hybrids) have been offered in 2024, together with 91,000 battery and 23,000 plug-in hybrids in Australia.

IEA data exhibits electrical autos are already decreasing oil demand globally, as are electrical bikes and mopeds.

Ending our dependence on oil might be gradual. Australia Institute research estimates 8% of imported fuels may very well be changed by native electrical energy as soon as EVs make up 25% of the passenger automotive fleet. At 100% EVs, we would scale back oil demand by 33%.

The opposite two-thirds of demand is essentially from vehicles, planes and ships. Electrical vehicles are coming, however the sector isn’t as mature as electrical automobiles. It is a comparable story for planes and cargo ships.

Power safety and EVs

Australia would not manufacture EVs at scale. In consequence, we import EVs from the highest manufacturing nations. China is way and away the chief, building 80% of Australia’s new EVs.

Australia is a major producer of vital minerals important to the manufacture of EVs, in addition to different inexperienced applied sciences corresponding to lithium, cobalt and nickel. However China dominates a lot of the global supply chain for refining these minerals and manufacturing batteries.

There is a threat in relying largely on one nation for EVs, particularly given the current geopolitical instability.

Balancing safety and sustainability

EVs unquestionably supply large benefits for Australia’s power safety by steadily decreasing our reliance on imports from unstable international oil markets.

However this must be balanced with different security concernscorresponding to a heightened reliance on China, in addition to the privacy and security risks linked to knowledge assortment from digitally linked EVs.

A balanced method would see authorities emphasize energy independence via renewables and powerful help for automobile electrification via legislative and regulatory frameworks.

Below this method, policymakers would work to diversify supply chainsstrengthen cybersecurity and encourage local manufacturing of EV elements.

This method would scale back new safety dangers whereas unlocking the environmental and financial advantages of widespread EV adoption.

This text is republished from The Conversation underneath a Inventive Commons license. Learn the original article.