Earlier this month, I shared with you a quote from Arnoud Balhuizen, chief commercial officer of BHP Billiton, the largest mining company in the world. In a September interview with Reuters, Balhuizen called 2017 the “revolution year [for electric vehicles], and copper is the metal of the future.”

Balhuizen’s assessment couldn’t be more accurate, and the implications for investors is too compelling to ignore.

In the third quarter, global sales of electric vehicles (EVs) soared 63 percent compared to the same period last year, 23 percent compared to the second quarter. A total of 287,000 units were reportedly sold in the September quarter, leading Bloomberg New Energy Finance to project total annual sales to exceed 1 million units for the first time.

As the world’s largest auto market, China was responsible for about half of the sales as the crackdown on polluting industries has propelled renewable alternatives from power generation to consumer products.

60 Million Electric Cars by 2040?

This is only the beginning. The chart below, highlighted by Katusa Research and originally provided by Bloomberg New Energy Finance, takes a look at annual global EV sales forecasts through the year 2040. As you can see, China, the U.S. and Germany will push the adoption of EVs forward, with the rest of the world following closely behind. Many analysts believe that by 2040, the global EV market could exceed 60 million vehicles sold per year.

Projected annual global electric vehicle sales
click to enlarge

Chinese automakers are moving fast to meet the demand. Volvo Cars, owned outright by Hangzhou, China-based Geely Auto, has already stated it will cease production of fossil fuel-powered vehicles by 2020. On top of that, the company is currently building electric versions of London’s iconic taxis, and Uber is rumored to buy as many as 24,000 electric Volvos.