India plans to establish an EV value chain to reduce dependence on imports, particularly in battery manufacturing.
New Delhi: India’s e-mobility sector is growing rapidly due to cleaner transportation demands; however, environmental and social risks pose a significant challenge to India’s sustainability goals. India faces severe pollution, with New Delhi being the most polluted city globally. Air pollution causes an annual death toll of 2 million people.
The Centre for Science and Environment reports that over half of particulate pollutants in the air come from emissions from two, three, and four-wheeled vehicles. This has led to a demand for cleaner transport, with battery-powered electric vehicles (EVs) emerging as the primary solution. EVs are hailed as clean vehicles that transform mobility and reduce environmental impact, making them a growing focus in India.
To address environmental sustainability issues, the Indian government has implemented various policies like Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) to boost EV adoption. This has boosted investor confidence and led to a surge in start-ups in the electric mobility sector. It is predicted that India’s EV industry will surpass 10 million units by 2030, with over 30 per cent adoption across different vehicle classes. Experts also project India to be among the top 10 EV markets globally by 2030, a significant step towards net-zero emissions by 2070.
India plans to establish an EV value chain to reduce dependence on imports, particularly in battery manufacturing. This is crucial due to geopolitical tensions and the high concentration of resources in select countries. In 2021, India discovered its first lithium reserve of 1,600 tons in Karnataka and plans to set up a lithium refinery in Gujarat to process battery-grade material. The country also has significant reserves of manganese and graphite.
The Indian government has announced a production-linked scheme (PLI) for advanced chemistry cell battery storage manufacturing to boost domestic EV battery manufacturing. Small players in the sector are already building cells for EVs, while large companies plan to establish manufacturing facilities. The battery value chain in India starts at module and pack integration, making it the most accessible entry point. The EV manufacturing space is well established with multiple OEMs and new entrants, particularly in the electric two and three-wheeler market.
Notably, India’s current charging station ratio is significantly lower than the global ratio, potentially causing a 40 per cent delay in its EV 30@30 vision. To address this, the government has implemented policies and incentives affecting all stakeholders in the EV ecosystem, aiming to increase the number of charging stations. A robust nationwide charging network is crucial for India’s electric vehicle adoption, as it facilitates quick and convenient charging for EV owners and eliminates drivers’ concerns about running out of charge, which remains a major deterrent to EV adoption.
The major reasons why India’s EV infrastructure is currently unable to flourish include inadequate power grid, lack of public charging infrastructure and geographical diversity. India’s power demand is expected to rise by 9-12 per cent by the end of 2023, putting the power grid under strain.
Adding electric vehicles (EVs) could exacerbate this, leading to frequent power cuts, particularly in rural areas. Despite government push, retail stores, small businesses, and RWAs may hesitate to provide public charging stations due to capital requirements and lack of awareness, while EV owners remain anxious about range.
Moreover, India’s diverse terrains and population density make charging infrastructure for electric vehicles (EVs) challenging. Water logging and the lack of EVs in rural areas make it difficult to maintain charging stations. Innovative solutions, such as renewable energy sources and fast charging technology, are needed to address these challenges.
The most prominent ways to revolutionise EV charging in India include initiatives to increase public charging infrastructure, integrate renewable energy, develop fast charging technology, and incentivise private sector investments. India’s transition to electric mobility relies on a robust charging infrastructure. Despite challenges, the government is increasing public EV charging stations, incentivizing private investment, and integrating renewable energy sources.
This could make India a leader in sustainable transportation and clean energy. Developing EV charging infrastructure can create new job opportunities, boost economic growth, and improve public health and quality of life. If India succeeds in this mission, it could inspire other countries towards a more sustainable and greener future.
Written By: Ashish Deswal, Founder EarthtronEV
