According to a new report by Accenture, China could actually be ahead of the US when it comes to the rollout of electric vehicles and deploying disruptive new transport technologies.
However, when it comes to creating new innovations across several platforms, including advanced combustion engines, electric and advanced biofuels that can be integrated into the existing infrastructure the US is thought to have the edge.
The authors state that China should win the race in terms of supporting alternative energy and allocation of funds to research and deployment, meaning it should reach its targets faster. However, the US is more likely to generate a breakthrough solution despite being slower in development.
China’s competitive advantage comes from its domestic supplies of lithium and current battery production capabilities. The rise of new fuel technologies should also allow both countries to enjoy greater energy independence with the reduction in the US potentially reaching 22billion gallons per year by 2030. This would reduce crude oil imports by one billion barrels per year; while China, which imports over half of its petrol demand, could reduce crude oil imports by 676million barrels by 2020.
The increase in new fuels will however, have a negative impact on the US refining industry with the blending of biofuels expected to replace more than 30 per cent of US petrol and diesel demand by 2030 compared to 2010. However, in China there should be no losers because car ownership is expected to triple between now and 2020 creating growth across the biofuel, electric vehicle and oil industries.
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