Hermanos Rodríguez Autodrome, Mexico City, February 11, 2022.—Today, LINK EV Electric Vehicles presented “Energy transition and sustainable mobility”, a talk by Sergio de la Vega, CEO, Citizens Resources, to analyze some of the most outstanding trends of this innovative transformation stage in the automobile industry.

Faced with the challenges of climate change, many in governments, industry, academia, the scientific community and civil society have proposed a transition towards the use of clean energy in all sectors as a solution, where electric mobility has a leading role.

However, the CEO of Citizens Resources pointed out the need to take into account that the transition of the automotive industry towards electromobility poses multiple challenges to solve, all of which require long time cycles and a collaborative effort in several sectors. This transition transcends borders, but will soon be driven in the long term by market forces and societal demands.

Sergio de la Vega explained that the energy transition will lead to two opposing economic phenomena. On the renewable energy side there will be a deflationary virtuous circle, as both photovoltaic and wind power generation panels and other renewable energies tend to become cheaper, increase their efficiency and be more environmentally sustainable. On the fossil fuel side, the process will be reversed, or inflationary, as hydrocarbons will become increasingly scarce, access will be increasingly difficult, and their use will be increasingly restricted and sanctioned.

De la Vega said that at first the transition to electromobility must contemplate financial, urban, technological and regulatory measures, among many other aspects, in order to meet the goal of less emissions. But in the long term an alignment of incentives will make the market forces themselves lead the transition, as we can already see in the rechanneling of large flows of investment capital that are leaving the fossil energy industry and entering renewable energies.

Sergio de la Vega urged for a better understanding of decisions regarding the electrification of transport, as these cannot be made based on concepts in terms of technology or sustainability that perhaps applied to the level of development or knowledge existing from decades ago, such as estimates of requirements of specific minerals such as lithium or cobalt for the production of batteries or photovoltaic cells, which today no longer apply.

In terms of electromobility, de la Vega also said that investments in electric motor transportation should be planned in terms of the total cost of capital; that is, analyzing the entire life cycle of the vehicle and the charging network. Although today the short-term purchase price of an electric vehicle is a little higher than its internal combustion equivalents, by incorporating the operating costs in the long term, electric vehicles are already more convenient in economic terms. This is especially true in intensive-use and last-mile cargo or passenger vehicles, as they require less maintenance than internal combustion vehicles and their technology is advancing rapidly.

Sergio de la Vega highlighted an understanding from the very concept of energy efficiency. For instance, currently less than 30% of the energy in fossil fuels is turned into electricity. This gives us an idea of ​​the effort in terms of electricity generation that humankind will have to make in order to replace the use of fossil fuels in automobiles, in a planet where the International Energy Agency (IEA) has estimated that the energy demand will increase by 30% by 2040, the equivalent to adding another China and another India to the global demand.

The truth is that the issue of electromobility is already going beyond borders, and proof of it is this week’s visit of John Kerry to Mexico for the formation of the Mexico-United States Task Force for the Electrification of Transport, an initiative that began during the North American Leaders Summit held in November 2021.

Link EV Electric Vehicles is part of Citizens Resources, a US company with over 40 years of footprint in international energy markets. In 2017 Citizens adopted a change of vision and a business plan to reduce its oil and gas operations to focus on clean energy, developing new business lines focused on energy transition.

LINK believes the adoption of electric commercial vehicles and fast charging stations with Wireless Charging technology is the first step towards electric mobility.


About LINK:

LINK EV is a subsidiary brand of Citizens Resources, based in Boston, Massachusetts. It is a US company with an over 40-year track record in international energy markets. Citizens currently operates distributed generation facilities, energy efficiency solutions, solutions for gas combustion in burners, green mining, electric mobility and smart cities. With a team of more than 50 professionals with extensive experience in energy sectors, based in the United States, Mexico and Europe, Citizens is committed to meeting the goal of leading the transition towards a more efficient use of energy.