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Get Ready for a Flood of Sugar as Brazilians Buy Electric Cars

  • EVs could slash ethanol demand by 40% through 2035, study says
  • Millers will be left with few alternatives but to make sugar

Brazil is set to flood the world market with sugar as the transition to electric vehicles slashes demand for crop-based biofuels, according to a study led by an influential industry executive.

Demand for ethanol, made mostly from sugar cane in Brazil, will likely start to decline in 2030 as EVs become more widespread, said Soren Jensen, the former chief operating officer of top sugar trader Alvean, who authored the study together with Mariana Perina Jirousek. That will leave millers in the world’s top sugar exporter with no option but to make more of the sweetener.