Introduction
The global automotive industry is experiencing one of the most disruptive shifts in its history. The rise of electric vehicles (EVs) is transforming how people drive, how businesses operate, and how energy is consumed. While EVs are celebrated for their potential to reduce carbon emissions and dependency on fossil fuels, their growth is also sending ripple effects across related industries—especially the oil and lubricant industry.
For decades, lubricants have been indispensable for vehicles powered by internal combustion engines (ICEs). They reduce friction, prevent wear, cool engine components, and extend vehicle life. But what happens when a vehicle no longer needs traditional engine oil? Does the lubricant industry face decline—or is it evolving into something more advanced, eco-friendly, and specialized?
This blog dives deep into how the rise of EVs is reshaping the oil and lubricant industry, the new types of fluids and greases EVs require, the opportunities and challenges ahead, and how companies like RBM Oil Corporation are adapting to this future.
EV Growth and Its Impact on Traditional Lubricants
The rapid rise of electric vehicles is undeniable. According to the International Energy Agency (IEA), more than 14 million EVs were sold globally in 2023, and the number is expected to surpass 40 million annually by 2030. As EV adoption increases, the reliance on traditional automotive lubricants is decreasing.
In conventional ICE vehicles:
- Engine oils are crucial for lubrication and cooling.
- Transmission fluids manage multi-gear systems.
- Exhaust system greases protect against corrosion.
But EVs eliminate or reduce many of these needs:
- No engine oil is required since there’s no combustion process.
- Simpler drivetrains reduce the need for multi-gear transmission oils.
- Fewer moving parts mean less reliance on high volumes of lubricants.
This is a fundamental challenge for the lubricant industry, where engine oils represent nearly 50% of automotive lubricant demand.
Why Electric Vehicles Still Need Lubricants
Contrary to popular belief, EVs are not lubricant-free. They may not need engine oil, but they rely on specialized fluids and greases to function efficiently and safely:
- E-Transmission Fluids
EV drivetrains operate at high speeds and temperatures. Specialized transmission fluids lubricate gears while also providing electrical insulation. - Battery Thermal Management Fluids
EV batteries must operate within a narrow temperature range. Dielectric coolants regulate heat without conducting electricity, ensuring safety and performance. - E-Motor Lubricants
Electric motors need low-viscosity fluids that reduce friction while maintaining efficiency under high rotational speeds. - Greases for Bearings and Chassis
EVs still require greases for wheel bearings, suspension systems, and steering mechanisms. - Brake Fluids
While EVs use regenerative braking, they still require specialized brake fluids compatible with advanced braking systems.
This creates a new and growing market segment: EV-specific lubricants.
EV-Specific Lubricants: The Industry’s New Frontier
The future of lubricants lies in fluids designed specifically for electric mobility. These include:
- Dielectric Fluids – Non-conductive coolants that prevent short-circuiting while managing heat in EV batteries.
- Low-Viscosity E-Fluids – Reduce drag in high-speed motors, improving range and efficiency.
- Thermally Conductive Lubricants – Improve heat dissipation from critical EV components.
- Long-Life Fluids – Designed for the lifespan of the vehicle, reducing the need for replacements and waste.
These innovations highlight how the oil and lubricant industry is evolving rather than disappearing.
Sustainability: A Shared Priority Between EVs and Lubricants
Both the EV revolution and the lubricant industry are driven by the need for sustainability:
- Bio-based lubricants – Produced from renewable vegetable oils and esters, reducing reliance on petroleum.
- Re-refined oils – Recycling and purifying used lubricants into high-quality base oils.
- Eco-friendly greases – Biodegradable formulations that prevent soil and water contamination.
- Longer drain intervals – Reducing waste oil generation and lowering environmental impact.
As EVs grow, the demand for eco-friendly lubricants will rise in parallel, making sustainability a central theme for the industry’s evolution.
Companies Leading the EV-Lubricant Transition
Several global players are already pioneering EV-specific lubricants:
- Shell – Developed its E-Fluids and E-Greases line tailored for EVs, covering batteries, e-motors, and transmissions.
- Castrol (BP) – Launched Castrol ON, focusing exclusively on EV thermal management and drivetrain fluids.
- TotalEnergies – Offers advanced dielectric coolants for next-generation EV batteries.
- Fuchs – Provides a wide range of specialty e-fluids and greases for electric mobility.
- ExxonMobil – Developing synthetic lubricants with longer life cycles for EV systems.
These companies are proving that adaptability and innovation are key to staying competitive in an EV-driven world.
RBM Oil Corporation: Driving Sustainability in the EV Era
In India, RBM Oil Corporation is positioning itself as a forward-looking leader in sustainable lubrication. Understanding that the future of mobility is electric, RBM is actively:
- Researching EV-compatible lubricants for drivetrains, batteries, and thermal systems.
- Promoting bio-based and eco-friendly oils to align with India’s green energy transition.
- Supporting fleet operators who are transitioning from ICE to EV with training and tailored lubrication solutions.
- Encouraging waste oil recycling and re-refining to minimize environmental harm.
By blending innovation with sustainability, RBM Oil Corporation is ensuring that it remains a key partner in the EV ecosystem, while also serving traditional markets.
Opportunities for the Lubricant Industry
Instead of decline, the lubricant sector has new growth opportunities:
- Premium EV Fluids – Specialty formulations command higher margins.
- Aftermarket Demand – EVs still require maintenance, greasing, and brake fluids.
- Industrial Applications – Lubricants for EV battery production, assembly lines, and motor manufacturing.
- Sustainability Branding – Companies that embrace eco-lubricants can align with ESG and net-zero goals, appealing to eco-conscious customers.
Challenges in the EV-Lubricant Transition
Despite the opportunities, challenges remain:
- Decline in ICE demand – Traditional engine oils will see a significant reduction in volume.
- High R&D investment – Developing advanced EV fluids requires time and capital.
- Lack of global standards – No universal specifications yet for EV lubricants.
- Awareness gaps – Mechanics, service providers, and consumers must be educated about EV-specific lubrication needs.
The Road Ahead: EVs and Lubricants in 2025 and Beyond
By 2025, EV adoption is expected to accelerate further, with government policies, subsidies, and charging infrastructure fueling growth. For the oil and lubricant industry, this means:
- Rapid scaling of EV-specific product lines.
- Greater focus on bio-based and eco-friendly lubricants.
- Expansion of recycling and re-refining initiatives.
- Stronger partnerships between OEMs and lubricant companies to co-develop EV solutions.
Far from being obsolete, lubricants will continue to play a critical role in the EV ecosystem—but in a smarter, greener, and more specialized form.
Conclusion
The rise of electric vehicles marks the beginning of a new era for the oil and lubricant industry. While traditional engine oils may decline, the demand for EV-specific fluids, eco-friendly lubricants, and advanced thermal management solutions is set to grow rapidly.
Global players like Shell, Castrol, TotalEnergies, and Fuchs, along with Indian leaders such as RBM Oil Corporation, are showing how innovation and sustainability can go hand in hand.
The lubricant industry isn’t fading away—it’s evolving to match the electrification of mobility. By embracing this change, lubricant manufacturers can reduce their environmental impact, unlock new business opportunities, and play a central role in the world’s transition to cleaner, greener transportation.
The road ahead may be electric, but it will still be powered by the right lubricants.
