Introduction
Electric vehicles are revolutionising the realm of transportation and the global automobile industry is beheld by a paradigm shift to electric vehicles. EVs have now become a trending topic in India and have joined the turn of the tide. With the ever-rising fuel prices, clubbed with rising pollution, EVs are growing at a rapid pace in India.
India is not going to be left untouched by the global EV reign. As the 4th largest automobile producer in the world and the 5th largest automobile market in the world, India is bound to witness a visible shift towards EVs in both production and consumption. In addition to standard automobile players such as Maruti, Hero, Tata, there is a pack of start-ups like Ola Electric, Ather energy, Okinawa setting foot in this market to present solid and reasonable range to users and spread EV mobility.
With the second largest road network in the world and being one of the main modes of movement of goods and passengers in India, road transport contributes nearly 123 million tonnes of CO2 emissions. India in its endeavour toward clean and sustainable development has manifested its intent on fast-tracking its adoption of low-emissions vehicles during the COP 26 United Nations Climate Change Conference.
Long term perspective:
The size of the Indian EV market is projected at $206 billion by the year 2030 and to attain a $200 billion+ size, the EV industry will require substantial investments to the tune of $180 billion. The government alone cannot depend on subsidies to boost EV adoption in India and needs to attract investment from the private sector in the areas of production and manufacturing vehicles, building charging infrastructure, and putting in place an end-to-end EV ecosystem.
Besides the industry frame of reference, preparing India for EV revolutions is important for the environment as well as reducing greenhouse emissions and opting for clean energy to stand by the Paris Agreement.
The battery is the heart of an EV
For India to be EV ready by 2025, the EV industry should be investing in manufacturing 50-60 GWh batteries, but the concerns encircling the availability of the raw material make this a daunting task. Unlike China, India faces a deficiency of global supply for primary materials like lithium and cobalt, necessitating urban mining and recycling for the country to emerge as a large-scale EV battery manufacturer.
NITI Aayog has been focusing on trying new and advanced combinations for batteries like using lithium, nickel, manganese, graphite, and cobalt to explore and comprehend what works. These raw materials can be derived through urban mining which means recycling used batteries.
India can conquer several EV battery recycling roadblocks with the correct initiatives and policy framework, and become a major player by the next decade. This would set off India’s EV revolution.
At the global level, attempts are being made to make batteries cost-effective. The battery prices have witnessed a stark fall in the past decade. From $1100/kWh in 2010, the battery prices have reduced to $137/kWh in 2020. With advancements in technology, there will be further reductions with projections for 2023 coming close to $101/kWh.
The primary phase of EV Lithium-ion batteries recycling is also only partially automated, demanding a crucial amount of physical labour. But India has a comparative advantage over other key players in the EV ecosystem as it is not only has a huge population to its advantage but also blessed with lower labour costs than Western countries.
The policy framework is the foundation stone
India has a progressive plan in place for the electrification of its automobile sector. The government is determined and is playing an active role. India has developed an appropriate policy framework and initiatives to become the ultimate EV investment destination.
The government’s FAME programme, launched in 2015 was a remarkable step to stimulate EV usage and boost the manufacturers to create EVs in India, marking a huge success. The Government of India under phase 2 of FAME in India has announced a budget of ₹10,000 Cr. to encourage the mobility of 15.62 lakh EVs. The latest moderation to the FAME 2 guidelines has made the price of EVs better than before, but still has a long way to go to create a massive transformation in the mobility space. The Budget 2022 introduced solutions that would propel EV growth while reducing the country's dependence on fossil fuels. The battery swapping policy as proposed by the government is the ultimate innovative solution for the e-mobility revolution in India.
It is indisputable that electric vehicles will modify global road transportation, with India qualifying with a huge deployment market. The policies and initiatives of the government towards making India a global manufacturing hub EV value chains and battery recycling is a stepping stone toward green and clean mobility.
Are we there yet?
The electric revolution is predestined but may not happen in a fortnight. It will take years or decades of toiling and policy modifications but the industry is ready, the people are ready and every small step today is going to take us closer to a greener tomorrow. The ambitious dreams and goals that India holds for E-mobility can be accomplished with striking investments, public-private partnerships, and steering the entrepreneurial energy in the country toward building an end-to-end ecosystem.