China is making rapid progress on battery technologies, including 5-minute charging ​and both sodium-ion batteries and lithium iron phosphate batteries. Western ⁠countries could use government support to boost innovation, the report said.

Policymakers around ​the world may find that increased licensing of Chinese EV technology is needed ​to boost resilience to oil prices as well as ramping up domestic supply chains.

Global oil demand could fall to 99 million barrels per day in 2040, from above 100 ​million bpd today.

Abundant oil supplies in the U.S. keep its EV market ​share rising from 3% today to only 20% by 2040, WoodMac forecast. In Europe, which ‌has ⁠high oil import dependence, EV market share should rise from 3% in 2025 to 35% by 2040.

"There's this tidal wave of EV innovation outside of the US, and in this scenario, the United States has to take electrification ​of transport seriously and ​fund new ⁠EV supply chains, new EV manufacturing, really to stay competitive with EV imports from other countries and to stay ​competitive abroad," David Brown, one of the report's authors, told ​Reuters.

Supply of ⁠minerals globally could support 50% growth in global EVs by 2040. The challenge is how quickly that new supply can be delivered. The world needs another $45 ⁠billion ​in investment in metals over the next decade. ​Copper is the critical bottleneck.

Electric grids and regulators need to expand "managed charging" to shift EV charging ​to periods when there's ample power supply.