The IEA anticipates every other car sold globally to be electric by 2035, avoiding the consumption of more than 10mn barrels per day of oil worldwide, equivalent to the amount the US currently consumes for transport.

The entry of Chinese EVs into the global market has alarmed Western policymakers in recent months, prompting investigations into Chinese trade practices and calls for greater trade restrictions to protect domestic industry. “The threat is definitely starting to show now,” said Abhishek Murali, an analyst at Rystad Energy. “[Chinese carmakers] are turning their attention to markets such as Australia, South America and south Asia.”

The organisation estimates the shift to EVs has already displaced $12bn in taxes globally last year. Europe, where countries tend to charge higher taxes on gasoline and diesel compared to the US and China, made up 60 per cent of global revenue losses last year.

More EVs = More power demand As more EVs hit the road, more electricity will be required for charging. The IEA expects electricity demand from EVs to grow from 130TWh last year to as much as 2,700TWh by 2035 based on current country ambitions. The energy watchdog estimates electric car charging could make up 9.8 per cent of global electricity demand by 2035, up from 0.5 per cent today.