If Australia switched to EVs, we’d be more reliant on China’s car factories – but wean ourselves off foreign oil

If Australia switched to EVs, we’d be more reliant on China’s car factories – but wean ourselves off foreign oil

Prapat Aowsakorn/Shutterstock

Australia has huge reserves of coal and gas – but very little oil. Before the 20th century, this didn’t matter – trains ran on local coal. But as cars and trucks have come to dominate, Australia has become more and more reliant on imported oil.

Imports now account for around 80% of total refined fuel consumption, the highest level on record.

If the flow of oil stopped due to war or economic instability, Australia would have about 54 days worth in storage before we ran out. That would be a huge problem.

But as more drivers switch from petrol and diesel to electric cars, this equation will change. We can already see this in China, where a rapid uptake of electric vehicles has seen oil demand begin to fall.

On one level, ending Australia’s dependence on foreign oil makes sense at a time of great geopolitical uncertainty. But on the other, going electric would lead to more reliance on China, now the world’s largest manufacturer of EVs.

Reducing reliance on oil makes clear sense for climate and national security reasons. But going electric has to be done carefully, to ensure Australia isn’t reliant on just one country.

oil tanker sydney harbour.
If the oil tankers stopped, Australia would have just one month of fuel. Ryan Fletcher/Shutterstock

Importing oil makes us vulnerable

In recent years, almost all of Australia’s refineries have closed. The government spent billions keeping the Geelong and Brisbane refineries open, as well as other fuel security measures, such as boosting domestic fuel reserves and building more storage.

The last two refineries rely on imported crude oil, as Australian oil from the North-West Shelf largely isn’t suitable for local refining.

As a result, Australia is more reliant than ever on importing fuels from large refineries in Asia such as South Korea, Singapore and Malaysia. In 2023, around 45,000 megalitres of fuel were imported from these nations.

Almost three-quarters (74%) of these liquid fuels are used in transport, across road, rail, shipping and air transport. But road transport is the big one – our cars, trucks and other road vehicles use more than half (54%) of all liquid fuels.

This reliance presents clear energy security risks. If war, geopolitical tension, economic turmoil or price volatility slows or stops the flow of oil, Australia’s cities and towns would grind to a halt.

In January, Australia had 30 days worth of petrol. Our stores of all types of oil are a bit higher, at 54 days worth. But that’s still well short of the 90 days the International Energy Agency (IEA) requires of member nations.

Electricity made locally

Shifting to electric vehicles promises cleaner air and far lower ongoing costs for drivers, as electricity is much cheaper than petrol or diesel and maintenance is far less.

But there’s another factor – the energy source. Australia’s electricity is all produced and consumed inside its borders, using local resources (sun, wind, water, coal and gas).

In this respect, electric vehicles offer much greater energy security. A war in the Middle East or a trade war over tariffs would not bring Australia to a halt. This is one reason why China has so aggressively gone electric – to end its soaring dependence on foreign oil.

Mainstreaming EVs in Australia will mean accelerating production of renewable electricity further so we can power not just homes and industry but charge cars, trucks and buses, too.

Doing this would boost our energy security, break our dependency on imported oil and drive down emissions.

EV manufacturing is expanding rapidly with more models, lower purchase prices, improved battery charging times and increasing consumer adoption.

Globally, over 17 million EVs (battery and plug-in hybrids) were sold in 2024, including 91,000 battery and 23,000 plug-in hybrids in Australia.

IEA data shows electric vehicles are already reducing oil demand globally, as are electric bikes and mopeds.

Ending our dependence on oil will be slow. Australia Institute research estimates 8% of imported fuels could be replaced by local electricity once EVs make up 25% of the passenger car fleet. At 100% EVs, we would reduce oil demand by 33%.

The other two-thirds of demand is largely from trucks, planes and ships. Electric trucks are coming, but the sector isn’t as mature as electric cars. It’s a similar story for planes and cargo ships.

woman hand charging electric car.
All electricity in Australia is produced locally. For transport, that’s a boon to energy security. Marian Weyo

Energy security and EVs

Australia doesn’t manufacture EVs at scale. As a result, we import EVs from the top manufacturing nations. China is far and away the leader, building 80% of Australia’s new EVs.

Australia is a major producer of critical minerals essential to the manufacture of EVs, as well as other green technologies such as lithium, cobalt and nickel. But China dominates much of the global supply chain for refining these minerals and manufacturing batteries.

There’s a risk in relying largely on one country for EVs, especially given the present geopolitical instability.

cars and a car transporter ship.
Australia’s EVs are imported from the top EV nation China and other suppliers. Rangsarit Chaiyakun/Shutterstock

Balancing security and sustainability

EVs unquestionably offer large benefits for Australia’s energy security by steadily reducing our reliance on imports from volatile global oil markets.

But this has to be balanced with other security concerns, such as a heightened reliance on China, as well as the privacy and security risks linked to data collection from digitally connected EVs.

A balanced approach would see authorities emphasise energy independence through renewables and strong support for vehicle electrification through legislative and regulatory frameworks.

Under this approach, policymakers would work to diversify supply chains, strengthen cybersecurity and encourage local manufacturing of EV components.

This approach would reduce new security risks while unlocking the environmental and economic benefits of widespread EV adoption.

The Conversation

Hussein Dia receives funding from the Australian Research Council, the iMOVE Australia Cooperative Research Centre, Transport for New South Wales, Queensland Department of Transport and Main Roads, Victorian Department of Transport and Planning, and Department of Infrastructure, Transport, Regional Development, Communications and the Arts.

The latest update on NZ’s state of the environment is sobering – but there are glimmers of progress

The latest update on NZ’s state of the environment is sobering – but there are glimmers of progress

Shutterstock/synthetick

If left unaddressed, many environmental changes in Aotearoa New Zealand could threaten livelihoods, health, quality of life and infrastructure for generations to come, according to the latest update on the state of the environment.

The Ministry for the Environment and StatsNZ produce an environmental assessment every three years, collating data and trends on air quality, freshwater and marine environments, the land and climate.

The latest report shows that long-term drivers of change – including international influences, economic demands and climate change – mean many natural systems have become less resilient and are at risk of collapse. But it also highlights improvements in urban air quality and reduced waste flows to landfill.

Real risks to people, communities and places

Many environmental trends in New Zealand are sobering.

Soil erosion is increasing and continues to degrade downstream freshwater and marine ecosystems. Soils misplaced from land, including through landslides or gradual loss of topsoil, can threaten homes and infrastructure and reduce the potential for growing food or storing carbon.

Climate change is projected to increase erosion rates by up to 233%, depending on future emissions scenarios.

Native forests are most effective at reducing soil erosion, but exotic forests can also help. The report shows the area planted in exotic forest has increased by 12% (220,922 hectares) between 1996 and 2018, with most of this new area coming from exotic grassland.

Landfill contaminants, including leachates and microplastics, threaten soil health. New Zealand remains the highest producer of waste to landfill per capita among developed countries, but waste flows to landfill have dropped by 11% in 2023, compared with a 2018 peak.

The report offers another glimmer of progress. While air pollution still affects health, long-term air quality is gradually improving thanks to a shift away from cars with combustion engines.

Congested multi-lane highway and dense housing
Population growth and urban development are displacing green spaces. Getty Images

Water quality and green spaces

What happens on land commonly flows into water, often affecting human health and recreation. The report shows that between 2019 and 2024, nearly half of all groundwater monitoring sites failed to meet drinking water standards for E. coli at least once. Nitrate concentrations also rose at around half of all sites.

Freshwater ecosystems are critically affected by the space we give them. Urban development can displace natural features such as wetlands and floodplains, which store water and provide a buffer against extreme weather events.

Four in five New Zealanders live in urban areas and the report shows green spaces have not kept up with population growth. Continued development near rivers and on floodplains, without maintaining natural buffers, increases risks to homes and infrastructure as flood extremes worsen with climate change.

Coastal areas face their own challenges. Rising seas and storm surges threaten not only homes and roads, but also culturally significant places. As many as 420 archaeological sites on public conservation land are at risk of coastal inundation and 191 marae are within one kilometre of the coast.

Livelihoods and biodiversity at risk

New Zealand is a globally significant biodiversity hotspot and natural landscapes are central to cultural identity. The land and waters, and species we share them with, are inseparable from M?ori identity. The economy, from agriculture to tourism, also depends on thriving ecosystems.

But many pressures on biodiversity are worsening, according to the report. About 94% of native reptiles and 78% of native birds are threatened or at risk of extinction.

Extreme weather events (expected to increase with climate change) threaten food and fibre crops. The report estimates the recovery of these sectors from Cyclone Gabrielle will cost up to NZ$1.1 billion.

Pest species continue to damage ecosystems at a cost of $9.2 billion in 2019–20, including primary-sector losses of $4.3 billion.

Wilding conifers are a particular concern, having invaded an estimated two million hectares of land, primarily on the conservation estate. Without careful management, the report projects they could cover up to 25% of New Zealand’s land within 30 years.

Scenic view of Oakley Creek waterfall in Auckland.
The restoration of Te Auaunga, Auckland’s longest urban river, is helping to reduce flooding and improve recreational spaces. Shutterstock/aiyoshi597

Stories behind the numbers

For the first time, the ministry has released a companion report to share stories of hope.

It highlights the links between environmental challenges and how nature-based approaches can benefit both people and the environment.

In Tair?whiti, for instance, a native forest restoration project is protecting Gisborne’s drinking water supply. A large block of commercial pine is being replaced with native forests to stabilise erodible land, filter water runoff before it reaches dams, and provide habitat for native flora and fauna.

In Auckland, the Making Space for Water program is restoring Te Auaunga (Oakley Creek), the city’s longest urban river. The work includes widening the river channel, removing restrictive structures and planting native vegetation to regenerate historical wetland habitats. Along with reducing flooding in the area, these changes provide improved recreational spaces for people.

The report notes the complexity of interactions between people and the natural environment, which means that many impacts cannot be seen straight away. For instance, nitrates move through groundwater very slowly and we may continue to see the effects of past decisions for some time yet. Furthermore, climate change can amplify many environmental stressors.

The state of our environment mirrors our collective decisions. This update offers an opportunity to guide those decisions towards a more resilient future.

The Conversation

Christina McCabe is affiliated with Te Whare W?nanga o Waitaha / The University of Canterbury, and Te P?naha Matatini, a Centre of Research Excellence.

Earless dragons were presumed extinct in Australia – now Daisy and Kip have sniffed out 13 of them

Zoos Victoria wildlife detection dogs uncovered the ‘bloody gorgeous’ reptiles in return for treats and cuddles

Wildlife detection dogs successfully sniffed out 13 critically endangered earless dragons in previously unknown burrows in Melbourne’s west, after a training program launched by Zoos Victoria in 2023.

The Victorian grassland earless dragon – Australia’s most imperilled reptile – had not been seen for 50 years and was thought extinct before its remarkable rediscovery on privately owned grassland in 2023.

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