Metal Trade Show | Norway Leading the EV Market, Advancing with Zero-Emission Goals, and Aluminium Benefits

Norway has firmly established itself as the world’s leading consumer of electric vehicles (EVs), a position driven by strategic planning, government policies, and incentives designed to promote the widespread adoption of electric vehicles as part of the country’s broader carbon reduction targets. Notably, Norway holds the largest global market share for battery electric vehicles (BEVs), thanks to tax exemptions that make BEVs financially more attractive than traditional internal combustion engine vehicles. As a key industry event, the Metal Trade Show is keeping an eye on the latest developments in the aluminium sector and providing industry professionals with updated information.

A few years ago, as BEV adoption surpassed expectations, the Norwegian government began scaling back some of the incentives and even reduced tax breaks. However, the enthusiasm for purchasing electric vehicles remained strong. This enduring demand is largely driven by more than just financial incentives; Norway’s net-zero carbon emissions target for its vehicle market has played a crucial role in fostering the consumption of electric cars. From 2020 to the first half of 2024, BEV registrations in Norway soared from 53.49% to 84.16%, while hybrid electric vehicles (HEVs) rose to 8.09% from 6.69%, and plug-in hybrid electric vehicles (PHEVs) fell to 3.41% from 17.73%. By 2025, Norway plans to achieve 100% net-zero emissions in the automotive sector by fully transitioning to electric vehicles and banning all new internal combustion engine (ICE) vehicles.

In November alone, Norway saw the registration of 10,940 electric vehicles, accounting for 93.6% of all new car registrations. While this number showed little difference from the 10,862 EVs registered in October, it marked a 30% increase from the 8,442 vehicles registered in November of the previous year.

According to the Norwegian Road Federation (OFV), Chinese-made electric vehicles have become dominant in the Norwegian market, accounting for 10% of new car sales. A significant driver behind this success is the ease with which Chinese EVs are available in Norway, thanks to tariff-free imports. When the European Union imposed a 45.3% import duty on Chinese EVs in November 2024, Norway stood out by not imposing similar tariffs. As Deputy Transport Minister Cecilie Knibe Kroglund noted, “We treat all countries equally. The Nordic country is not part of the EU.”

Chinese automakers have seen significant market share growth in Norway. In 2024, manufacturers such as MG (owned by SAIC Motor), BYD, and XPeng collectively accounted for 8.8% of the market, a notable increase from 4.1% in 2021 and 5.1% in 2023. This remarkable rise took just five years, with the first Chinese EV arriving in Norway in January 2020. Christina Bu, President of the Norwegian Electric Vehicle Association, commented, “The Norwegian car market is probably one of the toughest in the world. Competition is fierce.”

Throughout the first half of 2024, the Tesla Model Y claimed the top spot in Norway, with 8,419 new registrations. It was followed by the Volvo EX30 (3,776 units), Volkswagen ID.4 (3,485 units), Toyota BZ4X (3,035 units), and MG4 (2,448 units).

By November 2024, the Tesla Model Y continued to lead with 14,926 new registrations, accounting for 13% of all new car registrations. The Volvo EX30 ranked second with 6,623 registrations, followed by the Volkswagen ID.4 (6,544 units) and the Tesla Model 3 (6,197 units).

As the Norwegian electric vehicle market continues to expand, there is a significant increase in the demand for aluminium due to the lightweighting needs of EVs and the ongoing electrification process. According to Ducker Research & Consulting, the rising share of electric vehicles in Europe is expected to push the aluminium content per vehicle to 256 kilograms by 2030. Specifically, for battery electric vehicles, aluminium content per vehicle is projected to rise from 43 kg in 2022 to 51.5 kg in 2030. The largest increase in aluminium demand will come from electric vehicle-specific components, where approximately 54 kg more aluminium will be required per vehicle by 2030. The body-in-white (BIW) will also see an increase of 15.5 kg.

Key aluminium products used in EVs, such as castings, extrusions, and sheets, will experience substantial growth in usage. By 2030, the additional use of aluminium castings will increase by 22 kg, extrusions by 15 kg, and aluminium sheets by 14 kg. Production of passenger electric vehicles (BEV and PHEV) is projected to grow from 2.2 million units in 2022 to 10.9 million units by 2030.

By the end of 2025, the aluminium usage per European passenger vehicle, including both electric and non-electric vehicles, is expected to reach 198.8 kg.

Source: Al Circle