India plans to set up an EV value chain to reduce dependence on imports, especially in battery production.
New Delhi: India’s e-mobility sector is growing rapidly due to the demand for cleaner modes of transportation; 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 in the world. Air pollution causes a death toll of 2 million people every year.
The Center for Science and Environment reports that more than half of airborne pollutants come from emissions from two-, three- and four-wheel vehicles. This has led to a demand for cleaner transportation, with battery electric vehicles (EVs) being the main solution. EVs have been hailed as clean vehicles that transform mobility and reduce environmental impact, gaining increasing interest in India.
To address environmental sustainability issues, the Indian government has implemented several policies such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) to boost the adoption of electric vehicles. This has boosted investor confidence and led to a wave of start-ups in the electric mobility sector. The Indian EV industry is predicted to cross 10 million units by 2030, with more than 30 percent adoption across vehicle classes. Experts also predict that India will be among the top 10 EV markets in the world by 2030, a major step towards net-zero emissions by 2070.
India plans to set up an EV value chain to reduce dependence on imports, especially in battery production. This is crucial due to geopolitical tensions and the high concentration of resources in selected countries. In 2021, India discovered its first lithium reserve of 1,600 tonnes 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 plan (PLI) for the production of advanced chemical cell batteries to boost domestic production of EV batteries. Small players in the sector are already building cells for electric vehicles, while major companies are planning to set up production facilities. The battery value chain in India starts with the integration of modules and packages, making it the most accessible entry point. The EV manufacturing space is well established with multiple OEMs and new entrants, especially in the electric two- and three-wheeler market.
Notably, the current charging station ratio in India is significantly lower than the global ratio, potentially causing a 40 percent delay in the EV 30@30 vision. To address this, the government has implemented policies and incentives that impact all stakeholders in the EV ecosystem, with the aim of increasing the number of charging stations. A robust nationwide charging network is critical for EV adoption in India as it enables fast and convenient charging for EV owners and addresses drivers’ concerns about battery drain, which remains a major deterrent to EV adoption .
The main reasons why India’s EV infrastructure cannot currently thrive include an inadequate electricity grid, lack of public charging infrastructure and geographical diversity. India’s energy demand is expected to rise by 9 to 12 percent by the end of 2023, putting pressure on the electricity grid.
Adding electric vehicles (EVs) could make this worse, leading to frequent power outages, especially in rural areas. Despite government pressure, retail stores, small businesses and RWAs may be hesitant to offer public charging stations due to capital requirements and lack of awareness, while EV owners remain concerned about range.
Moreover, India’s diverse terrains and population density make charging infrastructure for electric vehicles (EVs) challenging. Flooding and the lack of electric vehicles 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 revolutionize electric vehicle charging in India include initiatives to increase public charging infrastructure, integrate renewable energy, develop fast charging technology and boost private sector investment. India’s transition to electric mobility depends on a robust charging infrastructure. Despite challenges, the government is expanding public EV charging stations, encouraging private investment and integrating renewable energy sources.
This could make India a leader in sustainable transportation and clean energy. Developing an EV charging infrastructure can create new jobs, stimulate 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