The IEA predicted in research released on Tuesday that during the next ten years, there will be a “surging demand” for EVs, which will “remake the global auto industry and significantly reduce oil consumption for road transport.”

If the infrastructure for charging cars keeps increasing, it anticipates that by 2035, half of all cars sold worldwide will be electric, up from more than one in five this year.

Based on existing government policies, the agency has a bright long-term view for EVs. This comes just days after Tesla, the largest EV manufacturer in the world, reduced its prices in key areas in response to dwindling sales and increased competition from established carmakers and Chinese upstarts.

According to IEA executive director Fatih Birol’s comments, “our data clearly shows the continued momentum behind electric cars, although it is stronger in certain markets than others.

“”The global EV revolution seems to be preparing for a new phase of growth rather than tapering off.”

The financial strain that automakers are currently experiencing, with profit margins being squeezed by price wars as competition heats up and demand slows, is in stark contrast to Birol’s optimistic view. Global EV sales increased by 35% to nearly 14 million units last year.