In the latest Global Electric Mobility Readiness Index (GEMRIX 2023), prepared by Arthur D. Little, Norway has once again solidified its position as the world’s foremost champion of electric vehicle (EV) adoption.
With a history of pioneering sustainable practices, Norway continues to blaze the trail for environmentally conscious transportation. However, China is emerging as a formidable challenger, rapidly advancing its own EV initiatives.
The Top EV Nations
# 1 Norway
# 2 China
# 3 Germany
# 4 Singapore
# 5 United Kingdom
# 6 Hong Kong
# 7 United Arab Emirates
# 8 United States
# 9 Qatar
# 10 New Zealand
In 2022, an astounding 80 percent of new vehicle sales in Norway were Battery Electric Vehicles (BEVs), the report said. This achievement builds upon Norway’s long-standing leadership in sustainability. One of the key factors contributing to Norway’s success is its energy sector, primarily powered by renewable energy from hydropower, accounting for 45 percent of its energy mix. The nation’s first hydropower plant was established in 1892, and as early as 2016, 98 percent of electricity production came from renewable sources.
Norway’s unique urban landscape, with 84 percent of its population residing in cities, has diminished the typical range anxiety associated with EVs, as city driving generally covers shorter distances. Despite this, Norway’s vast geography still demands substantial average daily trip lengths, averaging close to 15 kilometers. The government tackled potential range anxiety by implementing early infrastructure development programs, resulting in about 2,000 EV charging points by 2011. Today, Norway boasts approximately 25,000 public charging stations, including around 6,000 fast-charging options.
Given Norway’s limited history in the automotive industry, the nation is now attracting a new wave of automotive suppliers. Battery cell manufacturers such as FREYR AS and Morrow Batteries have established operations in the country, while battery recyclers, including Swedish Northvolt and Canadian Li-Cycle, are building plants in Norway. The availability of abundant renewable energy for electricity-intensive operations is a significant driving force behind these developments.
The Norwegian government addressed the economic chicken-and-egg dilemma through government-funded infrastructure projects and tax incentives for EVs. The initial 2,000 charging points were established at a cost of just €7 million. Norway also committed to installing chargers at intervals of at least every 50 kilometers along major roadways, a goal successfully met.
Norway’s strategy to reduce taxes on EVs has yielded impressive results. In 2019, EVs became the dominant technology, representing 50 percent of new vehicle sales, while pure BEVs achieved 50 percent of sales in 2020. In contrast, fossil-fueled cars bear substantial tax burdens.
Looking ahead, Norway has set ambitious goals, aiming for zero local emissions from passenger vehicles by 2025, a target much more aggressive than the European Union’s aim for 2035. With EV adoption reaching unprecedented levels, the Norwegian government is gradually phasing out tax incentives, emphasizing the nation’s continued commitment to sustainable transportation.
As China makes significant strides in EV readiness, it remains to be seen how the global landscape for electric vehicles will evolve in the years to come.