Coal Construction Continues, Rare Earths in EV Motors & Solar’s Cost Advantage
From coal’s continued build-out in Asia to falling solar costs and a surge in EV sales, this week’s stories capture the tensions and transitions shaping the global energy landscape. New studies show how renewables act as insurance against price volatility, while rare earth demand from electric motors underscores how clean technologies are reshaping supply chains.
🔥 Coal Investment Surges in Asia
Rapid growth in electricity demand is driving a continued build-out of coal-fired power plants, especially in China and India. In 2024 alone, China began construction on nearly 100 GW of new coal capacity, while global approvals for coal plants hit their highest level since 2015. The trend underscores how energy security and demand growth in emerging markets are still fueling fossil investment even as renewables expand.
🚗 UK Petrol and Diesel Cars Lose Market Share to EVs
Battery electric vehicles now account for 22.5% of UK registrations, with petrol models slipping below half of new vehicles (47.9%) and diesel falling to just 5.8%. Over the 12 months to August, the shift from combustion engines to electric power has accelerated, reflecting strong consumer interest, tighter emissions rules and growing EV availability.
☀️ Solar Costs 41% Below Fossil Alternatives
IRENA’s latest data show the global average cost of electricity from solar PV in 2024 was 41% lower than the cheapest new fossil fuel-fired plant. This cost advantage is helping drive record deployment worldwide and reshaping energy investment priorities.
🌍 Renewables Prove to Be a Price Stabilizer
Two new studies (Nature Energy and Energy Economics) find that renewables act as a form of insurance by reducing electricity price volatility and improving welfare. In Europe, where the gas shock from Russia’s invasion sent power prices soaring, researchers are now quantifying the hedging value of wind and solar against fuel price spikes.
🧲 Rare Earths Power the EV Motor Revolution
Electric vehicles are driving record demand for rare earth elements. In 2024, demand for neodymium, dysprosium, and terbium in EV motors hit 37 kilotons, up 32% year-over-year. With global EV sales still climbing, demand is projected to reach 43 kt in 2025, cementing EVs as one of the fastest-growing drivers of rare earth consumption worldwide.