The Next ‘Electrostates’: A Country Poised to Leave the US and EU in the Dust.

The term “petrostates” has become familiar to many, referring to countries closely associated with the oil industry, such as Saudi Arabia, the UAE, Kuwait, and Iran.

However, with the global energy transition toward electrification gaining momentum, a new term, “electrostates,” has been coined to describe nations making significant strides in shifting from fossil fuel-dependent technologies to electric alternatives.

According to the International Energy Agency (IEA), electrification is “one of the most important strategies for reducing carbon emissions from energy.” And, like in many other scientific domains, China has emerged as a frontrunner in the electrification race, surpassing the US and Europe.

A recent study reveals that China has achieved a 30% electrification rate, leaving the US and EU behind, as they hover around 22% in recent years.

The study also indicates that while the US leads in building electrification, China has caught up with the US and Europe in industrial electrification and surpassed them in transport electrification.

In 2024, electric vehicles (EVs) accounted for approximately 47.9% of total passenger car sales in China, a significant surge from 6.3% in 2020. In contrast, EVs made up less than 23% of new car sales in Europe during the same period.

China’s rapidly expanding modern railway network also contributes to the electrification of its transportation sector. The country boasts 45,000 km of high-speed rail, five times that of the EU, and this figure is expected to reach 60,000 km by 2030.

Currently, China is not only swiftly moving toward energy security but also gaining control over critical minerals that underpin future technologies.

“No one’s worrying about energy security, critical industries, and food while China has been focused on that for years,” said Andrew Gilholm, director of analysis at Control Risks, a consulting firm.

China is making significant strides in electrification, renewable energy, artificial intelligence, robotics, and IoT. And just as oil propelled the nations of the Arab world, clean energy technologies are now propelling China.

Specifically, renewable energy accounted for a record 10% of China’s GDP in 2024, driving economic expansion, according to CREA. In addition to energy security and economic growth, electrification is expected to play a crucial role in addressing climate change.

“We don’t see any way to get to a zero-carbon economy except through massive electrification,” said Adair Turner, head of the Energy Transitions Commission.