How Emerging Trends Will Reshape Green Investments in 2025 and Beyond

  • EV Market Surge: Record EV sales in 2024 (16.7 million units) are projected to grow to 22 million in 2025, signalling rapid market adoption.
  • China’s Dominance: China, leading EV adoption and production, controls 65% of global EV sales and 52% of global battery manufacturing.
  • Geopolitical Influence: China’s strategic focus on solar, batteries, and EVs strengthens its global position.
  • Battery Price Trends: After a 20% drop in 2024, battery price declines will slow in 2025, impacting EV and utility-scale adoption.
  • Policy and Regulation: Tougher EU emissions standards drive EV adoption, while US adoption lags due to policy uncertainty.

The green economy is witnessing transformative shifts, driven by surging EV adoption. In 2024, global EV sales reached 16.7 million units, with projections of 22 million units for 2025, accounting for 27% of global auto sales. China leads this revolution, dominating EV production, sales, and battery manufacturing, controlling 65% of global EV sales and 52% of global battery production through BYD and CATL.

China’s dominance is rooted in a deliberate strategy to establish itself as a global leader in clean technology, underpinned by substantial government subsidies and a strong focus on solar, batteries, and EVs. This industrial strategy doubles as a geopolitical manoeuvre, enhancing China’s influence on the global stage.

Battery prices, critical to the green economy, dropped by 20% in 2024 but are expected to stabilise in 2025. Despite this, China’s cost advantage ($95/kWh vs. $140/kWh in Europe) continues to propel its competitiveness. Meanwhile, stricter EU emission standards are incentivising EV adoption, while North America struggles with policy and cost barriers.

As these trends unfold, the green economy’s potential for disruption grows. Investors and policymakers must navigate this evolving landscape carefully, recognising opportunities in technologies past their “S-curve” inflection point, like EVs and renewables.

How Emerging Trends Will Reshape Green Investments in 2025 and Beyond

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