Electric Vehicles (EVs) and the North-South Inequality: Between Green Technology and Digital Power

Author: Rivadeneira Desthy Novarina Ramadanti
Editor: Ayom Mratita Purbandani

Digital transformation has become the key to the development of today’s world. Conceptually, digital transformation does not only mean the digitization of services or businesses, but fundamental changes that reorganize the production, distribution and consumption processes with digital technology as the “backbone”.¹ Meanwhile, sustainability is defined in socio-ecological terms, which is an effort to meet the needs of the present generation without compromising the ability of future generations, which includes social justice, environmental sustainability, and economic sustainability in a balanced manner. which requires the wise and fair use of resources.

In this context, the concept of digital power is relevant. Digital power refers to the ability of actors-states or companies-to control technology, data and digital infrastructure in order to strengthen political and economic dominance.² In the context of electric vehicles (EVs), digital power manifests itself in the control over mobility data, software design, and technology standards that determine who is the main producer and who is merely a consumer or provider of raw materials. Digital transformation, therefore, entails more than mere efficiency; it also functions as a means of global power that reinforces pre-existing inequalities in novel formats.

Digital transformation, in this case, plays an important role in supporting sustainability, especially through the EV sector. EVs are often promoted as a sustainable solution for reducing carbon emissions. However, in practice, EVs also reflect structural inequalities between countries in the Global North and Global South in terms of technological mastery, supply chains of minerals (lithium, cobalt, and rare earth elements), and control of digital data. The Global North maintains a dominant position in shaping the discourse on digital sustainability, while the South often assumes a passive role, primarily serving as a provider of raw materials or as a destination for finished goods.

Global Inequality in Digital Transformation and Electric Vehicle Adoption

Digital transformation and sustainability are two interrelated concepts. Sustainability emphasizes wise use of resources and collaboration across actors, while digital transformation contributes through energy and material efficiency. Technologies such as the Internet of Things (IoT), smart sensors, and artificial intelligence make energy-efficient and responsive mobility systems possible.³ In this context, EVs are a tangible product of digital transformation that supports sustainability, with the potential to reduce carbon emissions by up to 60-68% over their lifetime.⁴

The EV market is experiencing a period of growth and expansion, with global sales reaching 17 million units by 2024, marking a 25% increase from the previous year, and is expected to represent 20% of all new car sales.⁵ Although Global North still dominates, Global South countries such as Indonesia and India are starting to show significant increases. In Indonesia, EV sales tripled with the support of fiscal incentives and import tax exemptions. Meanwhile, in India, more than 100,000 units of EVs were sold by 2024,⁶ the majority in the form of two- and three-wheelers, which are more affordable for the lower middle class.⁷

The study of EVs in Latin America displays complex dynamics. Brazil recorded nearly 125,000 units of EVs sold in 2024, mostly imported from China. The Brazilian government faces a dilemma between accelerating adoption and reducing import dependency, although Chinese manufacturers such as BYD plan to produce locally from 2025.⁸ Smaller countries such as Uruguay⁹ and Colombia¹⁰ are also starting to encourage EV adoption through incentives and integration in public transportation, although the market share is still small-at 1.2% and 4.5% respectively.¹¹

EV adoption, in this case, involves the important roles of governments, companies and communities. Governments provide regulations and incentives, companies develop technologies and supply chains, and communities act as users. Despite the collaboration of these roles, the challenges remain, which face infrastructure limitations, dependence on battery imports, and digital and economic disparities. While the Global North emphasizes technocratic models and large corporations, many Global South countries emphasize local adaptation, inclusivity, and incentivization. For example, countries such as India and Indonesia have developed EV strategies based on electric scooters and small vehicles to adapt to local needs and purchasing power.

Furthermore, infrastructure inequality is not the only major issue in EV adoption in the Global South. Instead, EV production relies heavily on supply chains of strategic minerals such as lithium, cobalt and rare earth elements, which are extracted from countries in the South at great social and ecological cost. The mining of these materials often leads to land conflicts, heavy pollution and inhumane work practices, making it clear that despite the green narrative, the EV transition continues to reproduce old inequalities, with the Global South providing raw resources with huge environmental and social impacts, while economic value-added and technological control remain concentrated in the Global North.

EV Development Strategy and Comparison in China and the United States

China is often positioned as part of the Global South, but in the EV industry, its role shows the characteristics of a major industrialized country with global influence. The rapid development of the EV industry in China dates back to the establishment of the Electric Vehicle Institute of China Electrotechnical Society in 1987, followed by policies supporting electric bicycles in the 1990s that accelerated public adoption, although they were restricted in some cities for safety reasons. The central government then responded with policies that allowed the use of electric bicycles with certain speed limits and continued to provide incentives, prompting the purchase of around 100 million units in the past decade-more than any other country’s accumulated sales.

National policies such as the Auto Industry Adjustment and Revitalization Plan form the backbone of China’s strategy, although they have been effective primarily in boosting sales rather than spreading usage evenly.¹² China’s sustainability strategy emphasizes close government and industry collaboration to create affordable vehicles for the lower middle class, while building a production ecosystem that reinforces China’s dominance in battery technology and global supply chains. This supply chain dominance also externalizes ecological and social costs to other countries producing key raw materials, creating similar inequalities generated by Global North.

Meanwhile, in the US, EVs have reached the mainstream stage, as evidenced by the significant increase in market penetration.¹³ The US strategy emphasizes a market-based approach and private innovation, with Tesla as the main actor relying on aggressive digital promotion and direct interaction through social media, which enables online technical updates through IoT systems. The technology regime in the US tends to be liberal, emphasizing competition between companies, while China takes a state-led capitalism approach that integrates state and industry.

Nevertheless, China remains ahead in market scale, where by 2022, around 60% of global EV sales occur in China, which also exports 35% of global EV production, with domestic growth reaching 82%. Manufacturers like BYD even overtook Tesla in sales in the fourth quarter of 2023. The difference in regimes is obvious: while Tesla focuses on the individual consumer market, Chinese manufacturers such as BYD and Geely start with public vehicles such as electric buses, work with taxi drivers to ensure the availability of charging infrastructure, and actively organize usage schedules. This strategy, backed by mastery of battery technology and control over the supply chain, makes China not only competitive but also defines the landscape of the global EV industry.¹⁴

Conclusion

Digital transformation has a strategic role to play in supporting sustainability, especially through the development of more efficient and low-emission EVs. However, this transition is far from equitable. Global North countries continue to dominate technology, supply chains and sustainability narratives, while Global South countries face serious challenges related to infrastructure, technological capacity, and dependence on imports. However, China has demonstrated a model of success through close collaboration between government and local industry, which is driving wider adoption of EVs, while also raising new questions about the externalization of social and ecological costs to other countries.

Some other Global South countries such as Indonesia, India, and Brazil are beginning to show adaptive progress through strategies that suit local needs. However, for digital transformation to truly support equitable sustainability, it is important to emphasize the importance of technological justice, ensuring that the benefits of technology are not only concentrated on dominant actors, but also take into account the rights of actors involved in the supply chain, especially in extractive industry areas that supply important raw materials such as lithium and cobalt. Technological justice, in this case, demands that the production process does not cause unequal social and ecological burdens, and places environmental sustainability, the welfare of local communities, and sovereignty over data as key principles. The future success of digital transformation is only possible through a collaborative approach that is sensitive to inequality and contextual to local conditions, so that the digital green transition is no longer an instrument for reproducing injustice, but truly supports global shared prosperity.

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