NCR sat down with the Senior Policy Manager at the Electric Vehicle Council, Natalie Thompson, to discuss the changing car parc and how it is within Australia’s grasp to achieve a circular economy.
With a curious nature and a fascination for technology, Natalie Thompson is a part of the system that is supporting and advocating for the biggest change in Australia’s automotive industry since it began.
Natalie entered the world of electric vehicles at the Electric Vehicle Council 18 months ago, and since then, she has witnessed its rapid uptake across the automotive industry.
As a Senior Manager in the EVC policy team, Natalie’s responsibilities include identifying obstacles to electric vehicle adoption and finding solutions to overcome them, exploring opportunities within the electric vehicle value chain, and promoting sustainable practices.
Natalie’s role requires extensive coordination across different jurisdictions and industries. This involves close collaboration with policymakers, industry representatives, and consumers to support the electric vehicle transition.
The EVC
Launching in May 2017, the Electric Vehicle Council (EVC) is one of Australia’s largest advocates for a greener future through the uptake of electric vehicles.
With a large network of varying industries and collaborations, the EVC works across the entire EV ecosystem.
Creating a relationship with industries in each Australian state and territory has been essential for the EVC to ensure Australia moves forward as one nation.
“We engage with government bodies, industry groups, and industry stakeholders in every Australian state and territory,” Natalie says.
“We aim to develop nationally consistent approaches to support the EV transition across all segments of transport.”
Barriers for Australia
The uptake in electric vehicles in Australia has been an uphill battle. With logistical and infrastructural issues, to a lack of consumer trust in the vehicles, the uptake of electric vehicles has not been a linear pathway.
Rates of purchase and acceptance of electric vehicles has taken an upward trajectory post pandemic. According to the EVC, new electric vehicle purchases in Australia have more than doubled in 2023, compared to 2022. The total number of EVs on Australian roads now exceeds 180,000.
Natalie outlines the primary issue of the adoption of electric vehicles.
“It’s definitely improved, but there has been a historic lack of policy ambition at the level required for a large-scale transition. Consistent support is essential to provide a signal to investors, industry and consumers that Australia is ready for the change.” Natalie says.
In recent years, policy support has improved, with multiple standards, incentives, and strategies to encourage the acceptance and use of electric vehicles.
“This situation is improving,” she says. “It is great that more measures are being adopted by various states and territories. There have been significant steps by the Federal Government in the last 12 months in the form of a National EV Strategy and commitment to a New Vehicle Efficiency Standard.”
The EVC are aware of the scope of the transition ahead and the areas that are still in need of development and improvement.
“We need greater focus on the electrification of commercial vehicles including trucks and buses,” Natalie says.
“There needs to be significant investment in expanding charging infrastructure, and alleviating barriers in apartment complexes, commercial developments and out on major freight routes.”
Supply chain sustainability is essential in promoting electric vehicles as the green and environmentally friendly future.
Even though the life of an electric vehicle creates significantly lower emissions across its lifecycle in comparison with a petrol vehicle, Natalie emphasises the need and potential for improvement.
“It is particularly clear when you look at the production phase of a vehicle. The energy intensive processes involved in mining and manufacturing offer significant opportunities to decarbonise this part of the vehicle’s life,” Natalie says.
“Over time we will see more recycled content involved in vehicle and battery manufacturing which will play a big role in this.”
“The scaling up of battery recycling as we reach higher volumes of EVs in coming decades presents enormous opportunities to reduce demand for raw materials.”
“Addressing these issues is crucial for enhancing the overall sustainability of the EV lifecycle and ensuring the environmental benefits of EVs are maximised from production through to end-of-life.”
Heightened demands on electrical grid
For the EVC, the infrastructural and logistical challenges of electric vehicles do not fall to the wayside. The heightened demand on the electrical grid is one source of confusion and worry for consumers.
The EVC identify the issue and are advocating for a strategic and planned approach to ensure the strain on the electrical grid is minimised.
“If every car on Australia’s roads today were to switch to electric, it is estimated that there would be around a 15 per cent increase in overall electricity demand,” Natalie says.
“Considering that the transition to electric vehicles is projected to occur gradually over the next 25 years (aligned with achieving with net-zero targets by 2050), there is ample time to scale up the deployment of renewable energy to meet this increased demand.”
Creating a resilient electricity grid will be crucial in consumer trust in the new electric future.
“A key part of ensuring this will involve incentivising EV owners to charge their vehicles during periods of high solar penetration and overnight,” Natalie says.
“This will minimise demand for electricity during peak periods.”
“Fortunately, we are seeing that existing EV owners do tend to operate this way. We are seeing the proliferation of electricity retail offers that cater directly to this as well.”
Natalie and the EVC are optimistic that the high emission production of an electric vehicle will not only balance out, but will continue to develop and advance.
“Unlike petrol or diesel vehicles, which maintain a consistent rate of emissions throughout their lifecycle while burning fuel, the emissions associated with an EV are expected to fall progressively as the electricity grid continues to get cleaner,” Natalie says.
“Over time, it is also expected that the supply chain emissions for EV batteries will reduce as the industrial processes involved in battery production are decarbonised globally.”
“This presents a significant opportunity for improving the lifecycle emissions of EVs even further.”
So far, the Australian Capital Territory is leading the way for electric vehicle uptake, with 21.9 per cent of all light vehicles sold in 2023 being electric vehicles.
EVC and collision repair
The automotive repair industry has had to prepare for an electrical future, whether that is gaining an I-CAR Gold Class Collision Status or investing in the latest equipment, or upskilling staff.
The EVC represents several organisations, including businesses involved in the servicing and aftermarket sectors of the automotive industry.
“As the EV market grows, our role includes supporting these sectors as they adapt to the changing fleet. And what’s exciting is that many of these companies are leading the way in developing diagnostic tools to help ensure proper vehicle maintenance,” Natalie says.
The EVC acknowledges the progress the automotive industry has made in initiating upskilling and training. The EVC supports and encourages the repair industry to continue with the future led approach, while recognising that the transition will not change the fleet overnight.
“The maintenance and collision repair sectors are in a phase of transition, with ongoing efforts to upskill and prepare for a future dominated by electric vehicles,” Natalie says.
“While the current proportion of EV-trained mechanics is small, it is steadily increasing as the number of EVs on Australian roads grows, driving demand for EV repair services.”
“To support the transition to electric vehicles, consistent policy signals and strategic government investment is needed.
This includes the areas of skills development and training to equip the workforce with the necessary capacity to support a growing EV market. For example, the provision of fee-free or subsidised upskilling programs and the availability of targeted EV apprenticeships.”
Recycling of EV batteries
As electric vehicles are still in the early stages of production and repair, the automotive industry is still getting to know the boundaries and limitations of the technology. Natalie highlights the premature writing off of electric vehicles as being a minor setback.
“There is some concern that electric vehicles are being prematurely written off due to minor damages like superficial scratches to battery packs,” Natalie says.
“This is expected to change as the insurance, repair and maintenance industries develop more robust evaluation criteria and gains confidence in handling EV-specific issues.”
“As training and experience in EV repair improves along with clarity around different state regulatory approaches, we anticipate a reduction in unnecessary write-offs and an increase in the repairability of EVs.”
The progress towards making an electric vehicle completely ‘green’, includes the afterlife of the battery. The EVC welcomes the progress made, both in Australia and internationally.
“Companies in Australia, such as Envirostream and InfinitEV, focus on recycling and reusing EV battery cells,” Natalie says.
“Overseas there have been significant developments in EV battery recycling, including Redwood Materials which has achieved a 95 per cent material recovery rate, which is great to see.”
“A huge advancement we saw in the last decade was the evolution of battery management systems (BMS) and software to regulate temperature and usage patterns and optimise performance.”
“Ongoing research and development in battery chemistries is also expected to enhance the longevity and efficiency of EV batteries.”
According to the EVC, a current limitation is the low volume of end of life batteries available for reprocessing. However, there will be significant growth in the recycling sector once the batteries reach the end-of-life cycle in the 2030’s and onwards.
“There is promising progress in the recycling and reuse of electric vehicle batteries. This will be crucial for minimising the environmental impact associated with the extraction and processing of raw materials,” Natalie says.
“It all helps to develop the circular economy.”
While Natalie acknowledged that Australia is not at the forefront of the EV transition, she highlighted how that gives us a unique position.
“We have the advantage and opportunity to adopt successful strategies to avoid potential pitfalls. This will allow us to streamline our own transition,” Natalie says.
Keep a lookout for EVC’s upcoming State of EVs report for 2024.