Electrification transition could reshape global geopolitics

A new analysis by the We Mean Business Coalition reveals that the global transition toward electrified economies is progressing unevenly across 16 countries, potentially creating a new class of 'electrostates' with the power to control future economies.

The Electrification Competitiveness Index measures two dimensions: the deployment and market uptake of electric technologies, and the policies and conditions supporting progress. Currently, the median score for enabling policies (67%) is higher than the score for market deployment (45%), suggesting that in many regions, policy is advancing faster than market implementation.

China currently leads in deployment, producing over 80% of the world's battery cells and maintaining a dominant industrial base for electric technologies. In contrast, the United States is focusing on doubling domestic oil and gas production. Other nations are pursuing distinct strategies: France aims to increase electricity's share of final energy to 38% by 2035, Canada plans to double its electricity supply by 2050, and Europe seeks to become the first 'electrified' continent.