Electric Vehicles in Mining Market Size, Share and Trends 2025 to 2034

Electric Vehicles in Mining Market Size and Forecast 2025 to 2034

The global electric vehicles in mining market is experiencing strong growth, driven by eco-friendly innovations, increasing demands, and industry-wide sustainability efforts. The rising need for efficient and sustainable transportation solutions in mining operations is fuelling market expansion. Additionally, the push for reduced carbon emissions, advancements in battery technology, and stringent environmental regulations are accelerating the adoption of electric vehicles in the mining sector.

Electric Vehicles in Mining Market Key Takeaways

• Asia Pacific held a significant share of electric vehicles in the mining market in 2024.
• North America is anticipated to host the fastest growing during the forecast period.

Contribution of Artificial Intelligence (AI) in the EV Industry

The emergence of technologies like artificial intelligence and machine learning (ML) are playing a transformative role in the automotive industry which is promoting automation on a higher level. The electric vehicles in mining market are growing rapidly due to the emergence of self-driving vehicles like trucks, loaders, drills and many more which are supported by AI algorithms. This is eliminating the human intervention which can be a significant opportunity in the mining sector due to risk reduction. The use of AI is also being implemented in battery optimization that manages the energy expenditure after a certain limit. The growing focus on predictive maintenance makes AI a preferable choice, which could reduce errors through early prediction.

• In June 2024, Vedanta Resources regained control over the Konkola copper mine and invested USD 1.3 billion to boost production amid rising copper demand for AI and EVs.

Market Overview

Electric vehicles (EVs) in mining refer to battery-based machines designed to perform various mining tasks like drilling, hauling, transportation, and many more. These machines function on batteries, unlike traditional diesel-powered vehicles. The electric vehicles in mining market are witnessing significant demand due to increasing focus on the development of power-efficient vehicles that can be used in various mining tasks. Various types of EVs are gaining popularity due to the rising demand for underground mining processes. It also increases the demand for trolley-assisted EVs which can be used in open-pit mines too.

Electric Vehicles in Mining Market  Growth Factors

• The rising focus of the mining companies towards cost savings is leading to the adoption of EVs, which can help them save significant amounts on fuel expenditure.
• The increasing focus on adopting safety measures creates a significant demand for electric vehicles in the mining market where they are gaining demand for environment-friendly mining processes.
• The rising demand for trolley-based systems is gaining significant demand that contributes towards the growing popularity of these vehicles.
• The EVs in mining are gaining significant popularity due to the growth in the renewable energy sector that reduces the charging dependency on grid electricity.
• The rapid mining activities in the developing regions are poised to attract more infrastructure developments in these regions that improve the EV growth in those particular areas.

Market Scope

Market Dynamics

Drivers

Increasing government support

The rising environmental concerns about fuel-based vehicles have led to many changes in the automotive industry which is witnessing massive support through the regulatory bodies. The electric vehicles in the mining market are growing rapidly due to the increasing financial incentives provided by governments to boost the sales of EVs in these applications. For instance, the Indian government is providing subsidies to EV buyers that encourage its demand among consumers. Additionally, the growth of EVs is also attracting several investments in the charging infrastructure which makes it more preferable in other applications too. These initiatives are also increasing the profit margin of the companies which could help them in the long run.

Increasing automation in the mining sector

The rapid technological adoption in the automotive industry has been a game changer for many sectors, which is helping towards their growth. For example, the rise of self-driving vehicles like haul trucks, loaders, drills, and many others are significantly contributing towards the growth of electric vehicles in the mining market as they reduce the need for labor. Additionally, these mining tasks are often performed in complex environments that increase the need for human safety, which raises the demand for automated vehicles. This is helping the companies to maintain their work productivity without any safety threats. The demand for EVs in these applications is anticipated to increase due to the increasing focus on reducing the use of traditional fuel-based vehicles.

Restraint

Limited charging infrastructure in rural areas

The rise of EVs has gained significant popularity in developed regions due to the availability of charging infrastructure and high disposable incomes but there are still some factors that tend to hamper the growth of electric vehicles in mining market. The majority of the mining processes are carried out on the outskirts of the households, which makes electricity a big challenge for them. The deployment of the charging stations requires higher initial costs, which can be unaffordable for the authorities in those regions due to financial limitations. This increases the dependency of traditional vehicles which can restrain the expansion of EVs in this sector.

Opportunities

Rising adoption of sustainable mining

Air pollution has been a major problem in recent times, which has gained significant attention due to the threat to living beings. The report by the United Nations Environment Program (UNEP) states that CO2 emissions have surged by 30% since 2000. This has led to major changes by companies that aim to adopt zero-net emissions in the coming years. This has made EVs a preferable choice due to their affordability, which complies with the sustainability goals. The electric vehicles in mining market are anticipated to grow more efficiently due to the increasing initiatives for the development of EVs which can be used in mining applications.

Increasing collaborations and partnerships

The rapid growth in the automotive industry has led to an increasing focus on various applications like battery advancements, the use of EVs in various applications like mining, and many more. The growing focus of companies is anticipated to boost the growth of electric vehicles in the mining market, where the EV manufacturers are partnering with the equipment manufacturers that could create a customized vehicle for the particular process. The major battery drawback is also being focused on where these companies are collaborating to come up with efficient batteries with increased charging speed. These collaborations are also anticipated to improve their brand image due to their rising focus on sustainable adoption.

• In December 2024, Vale and BYD collaborated to explore light vehicle electrification in mining operations, aiming to reduce fossil fuel usage and cut emissions.

Asia Pacific Dominates the Electric Vehicles in Mining Market

Asia Pacific generated a significant revenue in the electric vehicles in mining market in 2024. The growth of the region is attributed to the vast mining sector in countries like China, India, and Australia, which increases the demand for vehicles for various applications. Additionally, the region is also one of the leading EV manufacturers which increases the business opportunities in these countries. The increasing government initiatives towards reducing carbon emissions are anticipated to increase more demand for EVs in the upcoming years. Additionally, China is the leading battery manufacturer, which is gaining more investments that could develop low-cost batteries, which could save the operational costs for the mining companies.

Growing Focus Towards Zero-Emission: North America to Witness the Fastest Growth

The Canadian and the U.S. governments are the two major countries in North America that are focusing on controlling CO2 emissions, which would help in increasing their quality of life. This is attracting several investments in the EVs which are a major substitute to the traditional fuel-based vehicles. The electric vehicles in mining market are anticipated to grow more rapidly due to the presence of high-end technologies that would help in the development of automated solutions in the mining sector. The majority of companies are investing in EVs, which would help them maintain their brand image, too. 
The Inflation Reduction Act (IRA) 2022 in the United States is offering incentives for electrification in heavy industries which includes the mining sector.

Recent Developments

• In October 2024, Newmont introduced its first battery-electric large mining truck, the Early Learner Cat® 793 XE, at the Cripple Creek and Victor mine in Colorado to advance sustainability in mining.
• In November 2024, Rio Tinto and China’s SPIC partnered to trial battery swap truck technology at the Oyu Tolgoi copper mine to advance decarbonization in mining. 
• In November 2024, Rio Tinto invested USD 2.5 billion in Argentina’s Rincón lithium mine to expand production from 3,000 t/y to 60,000 t/y by 2028.

Segments Covered in the Report

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa