Insight 12: A Low Carbon Location to Manufacture, Drive and Recycle Electric Vehicles
Summary
Electric vehicles (EVs) have much lower life cycle carbon emissions than petrol and diesel vehicles using internal combustion engines (ICE). Carbon emissions over the EV life cycle are falling fast as the UK electricity grid is decarbonised and the UK moves towards Net Zero. Total life cycle carbon emissions of a medium-sized battery EV will be about one quarter of a petrol car sold in 2025, with UK-manufactured EV batteries 12% greener than the European average.
Focus of the Insight
Quantifying the total carbon emissions generated across each of the manufacturing, usage and recycling stages is referred to as a life cycle assessment (LCA). The LCA makes sure that a comparison of emissions from EVs and ICE vehicles are conducted on a consistent basis. This Faraday Insight provides an assessment across the full ‘cradle-to-grave’ life
cycle from the mining of the raw minerals required to manufacture the EV and battery (the ‘cradle’) to end-of-life recycling of the battery (the ‘grave’). Other life cycle assessments are also illustrated and include cradle-to-gate, well-to-tank, tank-to-wheel and well-to-wheel.
Conclusion
The UK’s ambition to achieve Net Zero emissions by 2050 requires substantial decarbonisation across all sectors of the economy, but particularly the transport sector, which is one of the highest emitting sectors representing about a quarter of the UK’s carbon emissions. The shift to EVs is at the heart of the plan to decarbonise transport, with the recent Government announcement accelerating the transition by ending the sale of diesel and petrol vehicles by 2030. How successful the shift to BEVs will be in removing carbon emissions from transport will largely depend on the pace of decarbonising the UK electricity grid and the ability to establish battery manufacturing within the UK territories as it significantly affects the carbon emissions from BEVs across their life cycle.
The extent to which EVs reduce carbon emissions is the subject of a confusing debate, largely caused by analysis looking at discrete and incomplete parts of the EV and ICE vehicle life cycle. For example, it is often cited that EVs are zero emissions, but this does not consider the electricity needed to charge a battery or the hidden emissions from the recycling stage. Others point to the carbon emissions embedded in batteries and that manufacture of EVs (including the battery) generates more carbon emissions than an ICE vehicle, but this fails to compare the emissions from using and driving the car as a result of the carbon emissions per km difference between petrol and EVs. This Insight has tackled this issue by examining carbon emissions generated across the full ‘cradle-to-grave’ life cycle of petrol vehicles and EVs.
All major car manufacturers now have EV models planned or already for sale and demand is currently outstripping supply. Whilst the transition to EVs is certain and already underway, it is useful to assess and quantify the benefit in carbon emission terms of an EV over an ICE vehicle. The conclusion of this Insight is clear – that the shift to BEVs will bring about a three-quarters reduction in UK greenhouse gas emissions from moving away from petrol- and diesel-powered vehicles. This benefit will only increase further as the carbon intensity of the electricity grid reduces further resulting in lower carbon generated. The difference in life cycle carbon emissions between BEVs and ICE vehicles depends on lifetime range and, as batteries emerge with longer lifetime range, BEVs will become even less carbon producing by comparison.
As well as differences between EVs and ICE vehicles, there are also country differences driven by whether the EV batteries are charged using electricity generated from renewable energy or fossil fuels. Compared to other European countries, the UK boasts one of the lowest grid carbon intensities at 33% lower than that of Germany. A manufacturing facility in the UK would allow auto manufacturers sourcing batteries from the UK to advertise their products as having lower life cycle emissions compared with those from elsewhere in Europe. This point will become increasingly relevant as the EU is considering the use of whole life carbon reporting for vehicle CO2 emissions.