directed to commercialising emerging technologies that could catalyse faster and deeper

decarbonisation of the energy sector, had raised USD 1.1 billion and expects to announce
its first investments later in the year.

Figure 3.4 Global venture capital investment in energy technology start-ups

USD (2017) billion
5 Other energy

Other clean energy

4

Energy efficiency
3

Other renewables

2
Bioenergy

1
Solar

0 Transport
Avg. 2007-11 2012 2013 2014 2015 2016 2017

VC funding of energy technology start-ups fell in 2017 but is rising and approaching pre-2012 levels,
with the growth dominated by clean transport and renewables.

Note: Transport does not include start-ups developing mobility services, such as ride-hailing and other consumer
service software.
Source: Cleantech Group i3 database (2018).

Investments in lithium-ion batteries and EVs

The market for EV batteries is still nascent. Just over 1 million electric drivetrains, not
including two-wheelers, were produced in 2017, compared with around 100 million new
ICE engines. Yet the rapid growth in sales of EVs is having a major impact on the lithium-ion
(Li-ion) battery industry, as most production in capacity terms is for EVs. 9 As the cost of the
battery is the main determinant of the price of an EV, the uptake of EVs and their impact on
oil demand will be strongly influenced by developments in the Li-ion value chain, which is
currently characterised by high uncertainty.
© OECD/IEA, 2018

9
EVs include plug-in hybrids and pure battery vehicles.

208 3. Investment in R&D and new technologies