EV as a sustainable mobility-The Indian Context
Bharti Sharma
MBA,IIMB '23-'25 | Officer ,SBI '12 to date | B.Ph.T., PGIMER Chandigarh '06-'11
A comprehensive study on the Sustainability of Electric Vehicles as a Mobility Mode for India: Water Footprint and Ecological Impact
Abstract:
EV as a sustainable mobility-The Indian Context
This paper investigates the sustainability of electric vehicles (EVs) as a mobility mode for India, focusing on their water footprint and ecological impact in the context of manufacturing and non-renewable power generation. Through a comprehensive literature review and comparative analysis, we assess the environmental implications of EVs, highlighting their water-intensive nature in raw material extraction, manufacturing, usage, and end-of-life processes. Despite the potential for EVs to mitigate greenhouse gas emissions, their substantial water footprint raises concerns about their overall sustainability, particularly in regions reliant on non-renewable energy sources. We discuss the need for policy interventions, technological advancements, and a transition to clean energy to ensure the environmental viability of EVs in India.
Keywords: electric vehicles, sustainability, water footprint, ecological impact, manufacturing, non-renewable energy, policy interventions, clean energy transition.
“Man has lost the capacity to foresee and to forestall. He will end by destroying the earth.” - Albert Schweitzer
Introduction:
The transition to electric vehicles (EVs) is considered crucial for reducing greenhouse gas emissions and combating climate change. However, the environmental impacts of EVs extend beyond air emissions and include the entire lifecycle from production to disposal. One critical yet often overlooked aspect is the water footprint of EVs. This study evaluates whether EVs represent a sustainable mobility mode for India by considering their water footprint, ecological impacts of manufacturing, and the reliance on non-renewable power generation through imported coal. The objective is to determine if promoting EV mobility in India without proper infrastructure and a shift to clean energy makes business, policy, and societal sense.
Literature Review:
This literature review synthesizes current research on the water footprint associated with electric vehicles, highlighting key findings, methodologies, and gaps in the existing body of knowledge. The water footprint concept encompasses the total volume of freshwater used to produce goods and services, measured throughout the entire supply chain. The water footprint is typically categorized into three components: Blue Water Footprint-Consumption of surface and groundwater resources, Green Water Footprint - Consumption of rainwater stored in the soil, Grey Water Footprint - Volume of freshwater required to assimilate pollutants.
One of the primary contributors to the water footprint of EVs is the extraction of raw materials, particularly lithium, cobalt, and nickel, which are essential for battery production. Studies such as those by Yuan et al. (2019)1 and Xu et al. (2020)2 have shown that lithium extraction, predominantly from brine sources in arid regions like the Atacama Desert, is
highly water intensive. Cobalt and nickel mining also pose significant water usage and contamination challenges, particularly in regions with lax environmental regulations.
Footnotes: 1. Yuan, X., et al. (2019). The environmental impacts of lithium battery production: A review. Sustainable Production and Consumption, 20, 409-418. 2.Xu, C., et al. (2020). Environmental impacts of lithium production showing the importance of primary data of upstream process in life-cycle studies. Journal of Environmental Management, 262, 110253.
The manufacturing phase of EVs, especially battery production, is another critical area of water consumption. Research by Notter et al. (2010)3 and Hawkins et al. (2013)4 highlights that battery production can account for a substantial portion of the water footprint of EVs. Processes such as electrode coating, electrolyte preparation, and cell assembly are water intensive. Comparatively, the water footprint of manufacturing the vehicle body and other components is relatively lower but still significant.
The operational phase of EVs, which includes the generation of electricity used to charge the vehicles, also impacts the water footprint. The water intensity of electricity generation varies widely depending on the energy mix. Fossil fuel-based power plants, particularly coal and natural gas, have high water footprints due to cooling requirements, as noted by Webber (2008)5. In contrast, renewable energy sources like wind and solar have minimal water footprints, although the manufacturing of wind turbines and solar panels does involve some water use.
End-of-life processes, including the recycling of batteries and other components, also contribute to the water footprint of EVs. Effective recycling can mitigate some of the water impacts associated with raw material extraction. Studies such as Gaines (2014)6 emphasize the importance of developing efficient recycling technologies to reduce the overall environmental impact, including water use. Comparative studies between EVs and internal combustion engine vehicles (ICEVs) offer insights into the relative water impacts. For instance, Mishra et al. (2021)7 conducted a comprehensive analysis showing that while EVs generally have lower lifecycle greenhouse gas emissions, their water footprints can be higher than those of ICEVs, primarily due to battery production and electricity generation. These findings underscore the need for a balanced assessment of environmental impacts across multiple dimensions.
Footnotes: 3. Notter, D. A., et al. (2010). Contribution of Li-ion batteries to the environmental impact of electric vehicles. Environmental Science & Technology, 44(17), 6550-6556. 4. Hawkins, T. R., et al. (2013). Comparative environmental life cycle assessment of conventional and electric vehicles. Journal of Industrial Ecology, 17(1), 53-64. 5. Webber, M. E. (2008). Catch-22: Water vs. energy. Scientific American, 18(4), 34-41. 6. Gaines, L. (2014). The future of automotive lithium-ion battery recycling: Charting a sustainable course. Sustainable Materials and Technologies, 1-2, 2-7. 7. Mishra, S., et al. (2021). Life cycle water use of electric vehicles and their potential to reduce water use in transportation. Nature Sustainability, 4(4), 313-320.
Addressing the water footprint of EVs requires both policy and technological interventions. Policies promoting the use of less water-intensive materials, improving water use efficiency in manufacturing, and transitioning to renewable energy sources for electricity generation are crucial. Technological advancements in battery chemistry, such as solid-state batteries, and improved recycling techniques can also reduce the water footprint.
Despite the growing body of research, several gaps remain in understanding the full water footprint of EVs. Future studies should focus on - detailed water footprint assessments for different battery chemistries, regional analyses considering local water scarcity and ecosystem impacts, lifecycle assessments integrating water footprint with other environmental metrics, longitudinal studies tracking changes in water footprint with technological advancements.
Thus, water footprint of electric vehicles is a complex and multifaceted issue that requires a comprehensive understanding of the entire lifecycle, from raw material extraction to end-of- life recycling. While EVs offer significant benefits in terms of reducing greenhouse gas emissions, their water impacts cannot be overlooked. Through a combination of policy measures, technological innovations, and rigorous research, it is possible to mitigate the water footprint and ensure that the transition to electric mobility is environmentally sustainable in all aspects.
Objective:
This study intends to analyse the business opportunities of electric vehicles (EVs), the policy initiatives of the Government of India in this respect, and the societal impact of these vehicles with special emphasis on the water and ecological footprint. In this study we try to address the following questions: Are Electric vehicles sustainable mobility mode for India in view of their huge water footprint and ecological impact of their manufacturing? Can EVs fuelled by non-renewable power generation in thermal plants through imported coal reduce greenhouse gas emissions in India? Does it make business, policy and societal sense to push EV mobility in India without proper infrastructure and clean energy shift?
Further this paper is organised as follows: After the first 3 sections above, the next is Section 4 Methodology, then section 5 Analysis of EV manufacturing followed by section 6 on Water footprint of EV. After that we have section 7 on Ecological impact of EV followed by is section 8 on EV Business Opportunities, then there is section 9 on Government’s EV policy initiatives and then section 10 on Societal impact of EV. Finally, section 11 discusses the overall Indian context of EV which closes at key conclusions and policy recommendations. Lastly there are data and descriptive facts in annexures, tables, exhibits and sources referred for this research.
Methodology:
The methodology for this study comprises of three steps-Firstly the data collection on EV production processes, including raw material extraction, battery manufacturing, vehicle assembly, energy sources for electricity generation, and end-of-life management. This involves accessing industry reports, academic publications, government databases, and other relevant sources.
Secondly, comparative analysis of the water footprint of EVs with that of internal combustion engine vehicles (ICEVs) to understand the relative environmental impacts of different mobility modes. This comparative analysis considers factors such as raw material extraction, manufacturing processes, energy sources, and end-of-life management.
Finally, policy analysis to evaluate existing policies and regulations related to EVs and clean energy in India. Here we assess the effectiveness of implementation of these policies in promoting sustainable mobility and reducing environmental impact. Lastly, we identify policy gaps and opportunities for improvement.
Analysis of EV manufacturing:
The manufacturing process for electric vehicles (EVs) begins with the extraction of raw materials, a crucial step in the upstream portion of the EV battery supply chain. This involves mining minerals such as lithium, cobalt, manganese, nickel, and graphite, which are essential
for producing lithium-ion batteries. The extraction of these minerals has garnered significant attention due to concerns about meeting rising demand, potential price increases, and missed economic opportunities. Moreover, mining is often associated with human rights abuses, including child and forced labour, and environmental degradation. Indigenous communities, in particular, face negative impacts from new mining projects, with many mineral reserves located near their lands. These minerals, classified as "critical," are essential for economic and national security but are predominantly found in specific regions worldwide, making the supply chain for EVs truly global.
Following extraction, the midstream phase involves processing and refining these raw materials to create cathode and anode materials for batteries. This phase is vital for improving supply chain traceability, ensuring ethical sourcing of materials. The concentration of EV battery manufacturing in a few locations poses risks of geopolitical disruptions. Recent legislative efforts aim to mitigate these risks by requiring a percentage of EV battery minerals to be sourced locally or from reliable trade partners.
Once processed and refined, these materials move to the downstream portion, where they are assembled into battery cells, modules, and packs. Battery cells are grouped into modules, which are then combined into battery packs that include additional components for protection and functionality. These packs are integrated into EVs by automakers, some of whom partner with battery manufacturers to produce bespoke batteries for their vehicles. This intricate process, from extraction to assembly, highlights the complexity and global nature of the EV supply chain, emphasizing the need for sustainable and ethical practices throughout.
(Exhibit 1 -gives complete detail of life cycle of EV Battery)
Water footprint of EV:
The environmental benefits of electric vehicles (EVs) are widely recognized, but their water footprint raises significant concerns that challenge the narrative of EVs as a wholly eco- friendly solution. The extraction and processing of lithium, a key component of EV batteries, are particularly water intensive. It requires approximately 2 million litres of water to produce one ton of lithium, enough for about 100 car batteries. This water consumption is most evident in the South American Lithium Triangle, where lithium extraction has depleted local
water resources. For instance, in Chile, 65% of the region's water is used for lithium mining, leading to severe water shortages for agriculture and local communities.
The water footprint of EVs is further exacerbated during the electricity generation phase. The cooling systems used in thermal power plants, which provide the bulk of electricity for EVs, demand substantial water volumes. Electric vehicles consume around 10.6 gallons of water per mile, mainly due to the water required for thermoelectric cooling. This is significantly higher compared to the 0.6 gallons per mile consumed by gasoline vehicles. The increased reliance on thermoelectric power plants, especially in water-scarce regions, strains local water supplies, impacting both ecosystems and human communities.
Mining for other essential EV battery components, such as nickel and cobalt, also contributes to water pollution. Toxic chemicals used in the mining process can contaminate local water bodies, as seen in cases from Tibet to China. These environmental hazards extend beyond local ecosystems, affecting agriculture, drinking water supplies, and public health.
Moreover, the recycling of EV batteries, while essential for sustainability, also has a considerable water footprint. Current recycling technologies, although improving, are not widely implemented, with only about 5% of batteries being recycled globally. The process itself requires significant amounts of water, adding to the overall footprint of EVs.
To mitigate these issues, more sustainable mining practices, improved recycling technologies, and a shift to renewable energy sources for electricity generation are crucial. Companies like Volkswagen and General Motors have begun to address these concerns by reducing their operational water footprints and investing in recycling initiatives. However, broader industry- wide adoption of these practices is necessary to make a meaningful impact.
While EVs offer a promising path towards reducing greenhouse gas emissions and improving air quality, their significant water footprint poses a substantial environmental challenge. Addressing this requires a comprehensive approach, including sustainable resource management, advanced recycling methods, and a transition to renewable energy. Only by tackling these water-related issues can EVs truly contribute to a sustainable future.
(Annexure 1 provides complete detailed comparison of the water footprints between Electric Vehicles (EVs) and Internal Combustion Engine (ICE) vehicles, covering the entire lifecycle from raw material sourcing to end-of-life.)
Ecological impact of EV:
The ecological impact of electric vehicles (EVs) has garnered attention, primarily due to the environmental costs associated with mining materials crucial for their production. The extraction of these materials poses significant challenges, amplifying the energy intensity of EV manufacturing when compared to internal combustion engine (ICE) vehicles.
Mining operations, particularly for lithium, nickel, and cobalt, are notorious for their environmental toll. Toxic fumes released during the mining process and the water-intensive nature of extraction contribute to ecological degradation. For instance, protests erupted in Tagong, Tibet, and Yichun city, China, condemning the pollution of local ecosystems by lithium mining activities. Additionally, regions like the South American Lithium triangle and Nevada in the United States have faced water depletion and protests due to intensive lithium extraction.
The carbon footprint of EVs is further inflated by the transportation and production of batteries. Studies indicate that a significant portion of EV emissions—46%—stem from the production process, compared to 26% for ICE vehicles. The production of one tonne of lithium, necessary for approximately 100 car batteries, consumes an alarming 2 million tonnes of water. Moreover, nickel and cobalt mining, essential for battery production, have led to environmental degradation and habitat loss, as evidenced by cases in Cuba and the Philippines.
While recycling and reusing batteries offer a potential solution, the current technology remains inefficient. Some manufacturers, like Nissan, Volkswagen, and Renault, have initiated battery reuse and recycling programs, yet only a small fraction of batteries are currently recycled worldwide due to cost and complexity. The disposal of batteries in landfills further compounds environmental concerns.
These stories underscore the broader issue of metal extraction's hazards, which extend beyond EV manufacturing to encompass all portable electronic devices. Efforts to mitigate these impacts through recycling and reuse are underway but face significant challenges. As the demand for EVs continues to rise, addressing the ecological footprint of their production remains a critical imperative.
EV Business Opportunities:
Electric vehicles (EVs) are rapidly transforming the landscape of business operations across various sectors, offering a plethora of advantages that contribute to both economic efficiency and corporate sustainability. The adoption of electric vehicles (EVs) offers numerous business opportunities across various sectors, driven by the transition to sustainable transportation and the technological advancements inherent to EVs. This transformation presents not just an operational shift but also opens up new avenues for growth, innovation, and market expansion.
One of the most promising areas of opportunity lies in the development and deployment of charging infrastructure. As EV adoption increases, the demand for accessible and reliable charging stations is expected to soar. Businesses can capitalize on this need by investing in and operating charging networks, catering to both public and private sectors. Companies involved in real estate and retail can enhance customer attraction and retention by installing EV charging stations at their premises, creating additional revenue streams and boosting foot traffic.
Another significant opportunity is in the realm of renewable energy integration. Businesses can leverage EVs to create synergies with renewable energy sources such as solar and wind. For instance, companies can install solar panels alongside EV charging stations, providing a sustainable and cost-effective energy solution. This not only reduces operational costs but also aligns with corporate social responsibility (CSR) goals and regulatory compliance. Additionally, businesses specializing in renewable energy can explore partnerships with EV manufacturers and charging infrastructure providers to expand their market reach.
The rise of EVs also fosters innovation in battery technology and energy storage solutions. Businesses can invest in research and development to create more efficient, durable, and cost- effective batteries, which are critical for the widespread adoption of EVs. Advances in battery technology can extend beyond the automotive industry, impacting sectors such as consumer electronics and renewable energy storage. Furthermore, companies can explore opportunities
in battery recycling and second-life applications, where used EV batteries are repurposed for energy storage systems, thereby creating a circular economy. Vehicle-to-Grid (V2G) technology represents another frontier for business innovation. V2G enables bidirectional charging, allowing EVs to not only draw power from the grid but also supply electricity back to it. This technology can provide grid services such as frequency regulation and demand response, enhancing grid stability and efficiency. Businesses can develop and offer V2G solutions, creating new revenue streams through energy trading and grid services. Companies involved in software development and energy management can also benefit by creating platforms that optimize V2G operations and integrate them with smart grid systems.
Supply chain evolution is another area where businesses can find substantial opportunities. The shift to EVs requires a reconfiguration of traditional automotive supply chains, with increased demand for components like electric motors, power electronics, and advanced materials. Businesses involved in manufacturing these components can experience significant growth. Additionally, companies specializing in logistics and supply chain management can develop new strategies to handle the unique requirements of EV production and distribution, thereby enhancing efficiency and reducing costs.
The growing market for EVs also opens up new business models such as electric mobility-as- a-service. Companies can offer subscription-based services that provide access to EVs without the need for ownership, appealing to urban consumers and businesses looking for flexible transportation solutions. This model can be particularly attractive in densely populated areas where the cost and hassle of vehicle ownership are high.
Besides, the data and analytics capabilities of EVs offer opportunities for businesses to optimize fleet management and operational efficiency. EVs are often equipped with advanced telematics and connectivity features, allowing companies to gather valuable data on vehicle usage, efficiency, and driver behaviour. This data can be used to develop predictive maintenance schedules, optimize routes, and reduce operational costs. Companies specializing in data analytics and IoT can create solutions tailored to the needs of EV fleets, providing actionable insights and enhancing overall productivity. Other significant impacts of EVs on businesses is the potential for substantial cost savings. Despite the generally higher initial purchase price of EVs compared to traditional internal combustion engine vehicles, the gap in purchase cost is gradually decreasing. Over time, the total cost of ownership for EVs becomes more favourable due to lower operating expenses. Electricity is consistently cheaper than gasoline on a per-mile basis, and businesses can
optimize charging costs by utilizing off-peak electricity rates and installing charging infrastructure at their facilities. Maintenance costs for EVs are also markedly lower than those for fuel cars. EVs have fewer moving parts, no need for oil changes, and less frequent brake replacements due to regenerative braking systems. This reduction in maintenance requirements translates into lower long-term expenses for businesses, enhancing their operational efficiency. Additionally, governments worldwide are incentivizing the adoption of EVs through various tax credits, rebates, and subsidies. These financial incentives significantly reduce the effective purchase price of EVs, making them an attractive option for businesses looking to upgrade their fleets or invest in sustainable transportation solutions.
The depreciation rates of EVs have historically been higher compared to fuel cars, but this trend is improving as the market for used EVs expands. As technological advancements continue and the consumer market for EVs grows, the resale value of electric vehicles is expected to stabilize, further enhancing their financial viability for businesses.
Beyond cost considerations, the adoption of EVs aligns with broader sustainability and corporate social responsibility (CSR) goals. Businesses that integrate EVs into their operations can significantly reduce their carbon footprint, thereby contributing to environmental sustainability. This shift not only helps in meeting regulatory emission standards but also enhances the company’s brand image as a forward-thinking, environmentally conscious entity. Customers and employees alike are increasingly valuing sustainability, and businesses that prioritize green initiatives are better positioned to attract and retain both.
Furthermore, the transition to EVs prepares businesses for future regulatory landscapes, which are likely to impose stricter emissions standards and potential bans on internal combustion engine vehicles. By adopting EVs, businesses can future-proof their operations, ensuring compliance with evolving regulations and avoiding potential penalties.
In terms of employee and customer benefits, offering EVs as company cars or providing EV charging stations at workplaces can boost employee satisfaction and attract eco-conscious talent. Businesses that install EV charging stations can also draw in EV owners, increasing foot traffic and potential sales, thereby enhancing customer engagement and loyalty.
The overall impact of electric vehicles on businesses is profoundly positive. From cost savings and regulatory compliance to enhanced brand image and new market opportunities,
the adoption of EVs offers multifaceted benefits. Companies that embrace these opportunities can not only enhance their operational efficiency and revenue streams but also position themselves as leaders in the sustainable transportation revolution. (Annexure 2-Detailed business opportunities of EV in India)
EV policy initiatives of Government of India:
Electric Vehicles (EVs) have emerged as a cornerstone of government policy across the globe, primarily due to their potential to significantly reduce carbon emissions and help nations meet their international commitments under carbon credit protocols. The Government of India (GOI) has been particularly proactive in promoting EVs, with a target of transitioning 30% of vehicles on Indian roads to EVs by 2030. This ambitious goal is supported by a comprehensive suite of incentives and policies designed to encourage the adoption and manufacture of EVs, thus aligning with both environmental objectives and economic development goals.
The flagship initiative, Faster Adoption and Manufacturing of Electric (or Hybrid) Vehicles (FAME), exemplifies the government's approach. Initially allocated Rs. 10,000 crores, the budget for the FAME-II period was subsequently increased to Rs. 11,500 crores, covering the period from April 1, 2019, to March 31, 2024. The scheme provides direct financial incentives to reduce the purchase cost of EVs, which is typically higher than that of internal combustion engine vehicles due to the high cost of batteries. These incentives are offered on a per kilowatt-hour (kWh) basis across various vehicle types, from buses to two-wheelers.
In addition to financial incentives, the GOI has introduced several non-monetary benefits to boost EV adoption. These include concessional loan interest rates under Green Car Loans, exemptions from vehicle registration fees and road tax, and income tax deductions under Section 80EEB for interest paid on EV loans. Furthermore, the Voluntary Vehicle Fleet Modernization Program (VVMP) aims to incentivize the scrapping of old petrol and diesel vehicles, coupled with the retrofitting of existing vehicles to EV standards where feasible.
To inform and assist stakeholders, the GOI has launched the 'e-AMRIT' portal, a comprehensive resource for EV-related information. This initiative, a collaboration between
NITI Aayog and the British Government, underscores the importance of accessible information in driving the transition to e-mobility.
Infrastructure development is critical to the success of EV adoption. The GOI has sanctioned Rs. 800 crores under the FAME-II scheme for the development of 7,432 public charging stations. The Delhi-Chandigarh highway, for instance, now features 20 solar-based charging stations developed by Bharat Heavy Electricals Limited (BHEL), showcasing a model for future infrastructure projects.
India's robust automobile manufacturing sector, ranking third globally in the overall automobile market and first in two-wheeler production, presents a significant opportunity for EV manufacturing. The Production Linked Incentive (PLI) scheme for the auto and auto- component manufacturers, with an allocation of INR 25,938 crore for FY2022-23 to FY2026- 27, aims to develop advanced automotive technology products, focusing on zero-emission vehicles (ZEVs).
Tax policies also play a pivotal role in bridging the cost gap between EVs and traditional vehicles. The reduction of GST on EVs to 5% from the 28% levied on internal combustion engine vehicles, and the reduction of GST on Li-ion batteries from 28% to 18%, are significant steps in making EVs more affordable. Furthermore, the recently launched Electric Mobility Promotion Scheme-2024, with a budgetary allocation of Rs. 500 crores, is aimed at accelerating the adoption of electric two-wheelers and three-wheelers.
While the pricing of electricity for EV charging falls under the purview of state governments, the National Tariff Policy mandates that the cost of electricity for EV charging should not exceed 15% more than the average cost of supply. This ensures that EV charging remains economically viable for consumers.
The GOI's multi-faceted approach, encompassing financial incentives, infrastructure development, manufacturing support, and favourable tax policies, is designed to facilitate the transition to electric mobility. These measures are expected to significantly impact not only the environmental footprint of the transportation sector but also the broader economic landscape by fostering innovation and creating new opportunities within the automotive industry.
Besides all this, on ground reports from the leading newspapers like the business line provide another aspect of India's commitment to transitioning towards sustainability with clean energy and green mobility which is seen as a tale of initial promise followed by a series of unmet targets and policy missteps. Despite an ambitious renewable energy agenda, the country has struggled to achieve its set goals, highlighting a disconnect between policy aspirations and on-ground realities. This dissonance is similarly reflected in the government's push for Electric Vehicles (EVs), where significant strides in promoting EV adoption are undercut by insufficient infrastructure development necessary for sustainable usage. While there are various incentives to encourage EV adoption, the development of necessary infrastructure such as charging stations and battery swapping facilities has not kept pace, limiting the effectiveness of these incentives.
Acknowledging the improbability of meeting the 2022 targets, the government revised its goals, setting a new target of 500 GW for non-fossil fuel-based energy by 2030. Achieving this ambitious target hinges primarily on the expansion of wind and solar energy, as large hydro and nuclear projects face significant challenges. This scenario is echoed in the EV domain as without robust infrastructure, the widespread adoption of EVs remains challenging, akin to the renewable energy sector's struggle with achieving set targets. While notable strides have been made in increasing renewable energy capacity, the country has fallen short of its ambitious targets due to policy shortcomings and a failure to capitalize on emerging opportunities. This narrative is mirrored in the EV sector, where despite government efforts to boost EV adoption, the lack of comprehensive infrastructure development undermines these efforts. As India looks towards a greener future, it is imperative for policymakers to adopt holistic strategies that encompass diverse renewable energy sources and foster sustainable growth in both the clean energy infrastructure to enable EV usage. (Annexure 3 provides complete GOI EV policy initiatives details).
Societal impact of EV:
Electric vehicles (EVs) have a profound impact on society, presenting both positive and negative aspects. On the positive side, the business opportunities of EV industry create livelihood for people. In addition to this, EVs contribute to a significant reduction in greenhouse gas emissions and air pollutants, thus improving air quality and public health. This reduction in emissions is particularly beneficial in urban areas, where pollution levels
are often high, leading to respiratory and cardiovascular issues among the population. EVs also offer lower operating and maintenance costs compared to internal combustion engine (ICE) vehicles, providing long-term economic benefits to consumers and potentially reducing the overall cost of transportation.
However, the societal impact of EVs is not without its challenges. The high initial purchase price of EVs can be a barrier for many consumers, limiting their accessibility to a broader audience. The raw materials required for EV batteries, such as lithium, cobalt, and nickel, have substantial environmental impacts. Additionally, the mining of these materials required for EV batteries raises ethical and environmental concerns and can lead to environmental degradation, water scarcity, and human rights issues in mining regions, affecting local communities adversely. Mining these materials releases toxic fumes and is water intensive. For example, lithium extraction requires approximately 2 million tonnes of water per tonne of lithium produced, causing severe water depletion in regions like the South American Lithium Triangle, including Chile, Argentina, and Bolivia. In Chile, 65% of the region’s water has been allocated for lithium extraction, leading to significant ecological damage. Cobalt and nickel mining also pose environmental risks, with operations in countries like Cuba and the Philippines causing land degradation and water contamination.
The manufacturing process of EVs further exacerbates environmental concerns. Producing an EV generates nearly 4 tonnes of CO2, with a significant portion of emissions coming from the production process itself. This is substantially higher compared to the manufacturing of internal combustion engine (ICE) vehicles. Additionally, EV manufacturing is highly water intensive. For instance, Volkswagen has implemented measures to reduce water consumption by recycling wastewater in their production plants, yet the overall water footprint remains significant.
During the operational phase, EVs do not produce tailpipe emissions, but their environmental benefit heavily depends on the electricity source used for charging. In countries like India, where a large proportion of electricity is generated from coal, the indirect emissions can be considerable. Moreover, EVs require more water per mile driven than ICE vehicles due to the cooling needs of power plants that generate electricity. This increased water usage is a critical concern, especially in water-scarce regions.
At the end of their lifecycle, the disposal of EV batteries poses significant environmental challenges. These batteries contain hazardous materials that can cause environmental harm if not disposed of properly. Despite efforts by companies like Nissan, Volkswagen, and Renault
to invest in battery recycling technologies, current recycling rates are still low, with only a small percentage of lithium-ion batteries being recycled. Mismanaged disposal can lead to soil and water contamination, further exacerbating environmental issues. The recent protests against Tesla's factory expansion in Gru?nheide, Germany, underscore the environmental concerns associated with EV production. Environmental groups, including Extinction Rebellion and NABU, have raised issues such as deforestation, water usage, and increased traffic. The expansion plan requires clearing significant forest areas and could heavily impact the local water supply, leading to public opposition and legal challenges. These protests highlight the complexities and local environmental impacts of large-scale EV production projects.
A detailed analysis of their lifecycle, encompassing raw material extraction, manufacturing processes, operational phase, and disposal, reveals significant environmental challenges. (Annexure 4 provides complete Social Impact of EVs due to excessive hazardous material footprint).
While EVs offer clear benefits in terms of reducing operational emissions and reliance on fossil fuels, their overall environmental impact is complex and multifaceted. To maximize the benefits of EVs, it is crucial to address these environmental issues through sustainable mining practices, efficient recycling technologies, and a transition to renewable energy sources for electricity generation. Policymakers and manufacturers must work collaboratively to improve the sustainability of the EV supply chain and mitigate the ecological impacts associated with their production and disposal. By doing so, EVs can play a crucial role in transitioning to a cleaner, low-carbon transportation system while minimizing their environmental footprint.By balancing the environmental benefits with the societal impacts, EVs can be a cornerstone of a sustainable transportation system, providing both ecological and economic advantages while safeguarding the interests of communities affected by their production.
The Indian context of EV as a whole:
In the Indian context, the emergence of electric vehicles (EVs) represents a pivotal moment in the nation's efforts to combat environmental degradation and transition towards sustainable transportation solutions. India grapples with significant environmental challenges, particularly in the transportation and power sectors, where emissions from conventional fossil fuel-powered vehicles and coal-fired power plants contribute substantially to greenhouse gas emissions and air pollution.
The rapid rise in vehicle numbers, projected to increase by 900% over the next three decades, underscores the urgent need for sustainable on-road mobility solutions. Traditional internal combustion engine (ICE) vehicles contribute heavily to air pollution, emitting harmful pollutants like carbon monoxide, nitrogen oxides, sulphur dioxide, particulate matter, lead, and benzene. These pollutants significantly impact human health, particularly in densely populated urban areas. As India ranks as the third-largest greenhouse gas emitter globally, the transportation sector's role in this issue is undeniable. (Refer Exhibit 3 for Sector-wise contribution in GHG emissions of India)
India's transportation sector stands as a notable contributor to the nation's carbon footprint, with conventional passenger vehicles alone estimated to produce approximately 147 million tonnes of greenhouse gas emissions in 2023. Despite increasing adoption of public transit and shared mobility services, the reliance on traditional internal combustion engine (ICE) vehicles persists, exacerbating air pollution and climate change concerns. To address this, regulatory frameworks such as Corporate Average Fuel Efficiency/Economy (CAFE?) norms and Bharat Stage (BS) emission standards have been implemented, aiming to curb emissions and improve fuel efficiency (Exhibits 4 and 5 give data on emission standards for petrol and diesel vehicles in India). However, the transition towards cleaner transportation options remains imperative.
In this scenario, Electric vehicles (EVs) present a promising solution to these environmental challenges. EVs have the potential to revolutionize India's transportation sector by reducing harmful emissions, increasing the demand for renewable energy sources, and fostering sustainable production and disposal practices. Unlike traditional vehicles, EVs do not produce tailpipe emissions, which are significant contributors to air pollution. They utilize electricity stored in batteries to power their electric motors, eliminating the need for combustion engines that rely on fossil fuels. Moreover, EVs employ regenerative braking, which sends energy generated by braking back to the car's power system, further reducing pollution. So technically, if only vehicular aspect of the carbon-footprint is taken then, India's adoption of EVs holds immense potential to address environmental challenges and pave the way for a sustainable transportation future (Exhibit 6 gives data on comparison of vehicle whole life carbon emission in EV and non-EV vehicle types).
However, in India, 71% of the installed power capacity is thermal, about 12% is hydro power, 15% is other renewable sources and about 2% is nuclear power as per data for the year 2022 which is rising further. The volume of electricity generated across India between April 2022 and March 2023 was just over 1,400 billion units. The largest share came from thermal power, at around 85 percent of the total electricity generation in the country (Exhibit 7 gives data on emission standards for coal-based power plants in India).
The power sector poses another significant challenge, with imported coal-fired power plants accounting for over 95% of India's power sector emissions. The power sector was responsible for the largest share of India's greenhouse gas emissions in 2022, at roughly 32 percent (Exhibit 3).
Despite efforts to diversify the energy mix, thermal power continues to dominate, comprising around 85% of total electricity generation. This reliance on coal not only contributes to greenhouse gas emissions but also exacerbates air quality issues, particularly in densely populated urban areas. The need to transition towards renewable energy sources is evident, yet the transition pace remains a subject of debate and policy consideration.
To add fuel to fire, the economic rationale of switching to EV is when fossil fuel like petrol, diesel is no longer required to be imported, but for power generation also the coal is imported by thermal plants. The reason is that power plants designed on domestic coal use imported coal for blending purpose whereas power plants designed on imported coal import coal for their fuel requirement. As coal is under open general licence (OGL), power plants import coal as per their preference and source based on their commercial prudence.
The import bill burden is there to stay even with EV for electricity generation by power plant. As per available data, India imported 131.92 million tonnes of coal worth Rs 2.3 lakh crore in April-September period of ongoing financial year 2023(Exhibit 8 gives data on import of coal in India over last 10years).Besides, India imported 212.4 MMT of crude oil, worth $120.7 billion in FY 21-22.There can be a comparative cost benefit analysis on coal import costs vs fossil fuels import costs in India to check if EV would be overall expensive or cheaper for India.
Within this context, electric vehicles offer a promising solution to mitigate emissions from the transportation sector and reduce dependence on fossil fuels. India has witnessed a surge in
EV adoption driven by factors such as rising fuel prices, environmental awareness, and government initiatives. Ambitious targets have been set to achieve a 30% growth in private electric cars and an 80% growth in two- and three-wheelers by 2030, with projections suggesting that the EV industry could reach $100 billion by the end of the decade. However, challenges persist, particularly regarding the environmental impact of battery production and the reliance on imported lithium-ion batteries due to a lack of domestic lithium reserves.
The economic and environmental implications of EV adoption warrant careful consideration. While EVs offer the potential to reduce emissions and improve air quality, concerns remain regarding the sustainability of battery production and the predominant use of coal in the power sector. A comprehensive cost-benefit analysis is essential to evaluate the overall impact of EVs compared to traditional fossil fuel vehicles, taking into account factors such as manufacturing emissions, energy sources, and lifecycle assessments.
Overall, the Indian context of EVs reflects a dynamic landscape characterized by environmental imperatives, regulatory mandates, and economic considerations. The transition towards sustainable transportation solutions requires collaboration among citizens, vehicle manufacturers, and policymakers to address environmental challenges, meet regulatory standards, and pave the way for a cleaner and greener future.
Key Conclusions:
The transportation sector, dominated by internal combustion engine (ICE) vehicles, is a major contributor to air pollution and greenhouse gas emissions in India. Traditional vehicles emit harmful pollutants that significantly impact human health, especially in densely populated urban areas.
Electric vehicles (EVs) present a promising solution to mitigate these environmental issues. EVs do not produce tailpipe emissions and can help reduce the overall carbon footprint if powered by renewable energy sources. They also use regenerative braking, which reduces pollution.
There are challenges with EV Adoption like firstly, High Raw Material Costs- The demand for EVs is driving up the prices of essential raw materials like lithium, cobalt, and nickel. The
price of lithium, for instance, has increased by 70% since January 2022.Secondly, Battery Production and Environmental Impact-The production of EV batteries involves significant environmental challenges, including the mining of finite resources, which can lead to environmental degradation. Thirdly Energy Source for Charging- A substantial portion of India’s electricity comes from thermal power (85%), primarily coal, which offsets some of the environmental benefits of EVs. Last but not the least Economic Considerations-The reliance on imported coal for electricity generation implies that the economic benefits of reduced oil imports might be offset by coal import costs.
Although the Indian government has launched the National Electric Mobility Mission Plan to promote EV adoption through reduced prices, tax exemptions, and enhanced charging infrastructure. However, more needs to be done to address the rising costs of raw materials and the environmental impact of battery production.
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Policy Recommendations:
To maximize the benefits of electric vehicles, India must promote renewable energy integration by investing in renewable energy sources like solar, wind, and hydro, reducing reliance on coal for electricity generation. This approach will enhance the overall environmental benefits of EVs. Developing EV charging stations powered by renewable energy will ensure that the electricity used for charging EVs is sustainable, further reducing the carbon footprint.
Investing in research and development to improve battery technology, focusing on alternative materials that are more abundant and less environmentally damaging, is crucial. Establishing robust recycling and reuse programs for EV batteries will minimize environmental harm and reduce the need for new raw materials. Stringent regulations for the sustainable mining of lithium, cobalt, and nickel must be implemented to minimize environmental impact, and the use of ethically sourced materials in battery production should be encouraged.
Economic and policy measures, such as providing subsidies and financial incentives for the adoption of EVs and the development of related infrastructure, are essential. Strengthening
regulatory frameworks like Corporate Average Fuel Efficiency (CAFE?) norms and Bharat Stage (BS) emission standards will further reduce emissions from traditional vehicles. Conducting comprehensive cost-benefit analyses comparing the import costs of coal versus fossil fuels will ensure economic viability in the transition to EVs.
Public awareness campaigns are necessary to educate citizens about the environmental benefits of EVs and the importance of transitioning to sustainable transportation. Implementing training programs for manufacturers and stakeholders will promote best practices in EV production and maintenance. Fostering collaboration among citizens, vehicle manufacturers, policymakers, and environmental organizations will address the challenges and opportunities of EV adoption. Engaging in international partnerships to share knowledge, technology, and best practices in EV development and deployment will further support India's transition to electric vehicles. By addressing these recommendations, India can effectively navigate the transition to electric vehicles, ensuring that the shift contributes positively to both environmental sustainability and economic growth.
Data and descriptive facts:
Exhibit:1 EV Battery Supply Chain Lifecyle
Exhibit 2: Model based 3 key businesses areas of EV
Exhibit 3: Sector-wise contribution in GHG emissions of India
Exhibit 4 give data on emission standards for petrol vehicles in India
Exhibit 5 give data on emission standards for diesel vehicles in India
Exhibit 6 gives data on comparison of vehicle whole life carbon emission in EV and non-EV vehicle types
Exhibit 7 gives data on emission standards for coal-based power plants in India
Exhibit 8 gives data on import of coal in India over last 10years
Annexure 1:
Electric vehicles (EVs) and internal combustion engine (ICE) vehicles have markedly different water footprints throughout their lifecycle, from sourcing raw materials to end-of- life disposal. Here is a detailed analysis of these differences:
Raw Material Sourcing
EVs: - Lithium Extraction: Producing one ton of lithium, enough for approximately 100 EV batteries, requires around 2 million litres of water. - Nickel and Cobalt Mining: These metals, crucial for EV batteries, also demand significant water. Mining operations often lead to water contamination due to the release of toxic chemicals, impacting local water supplies and ecosystems.
ICE Vehicles: - Oil Extraction and Refining: The water used in oil extraction and refining processes varies, but it's significantly less than that used for lithium extraction.
Overall Impact: The water footprint in the extraction phase for ICE vehicles is primarily due to drilling and refining processes, which, while impactful, are less intensive than the mineral extraction for EV batteries.
Manufacturing
EVs: - Battery Production: The production of EV batteries is highly water-intensive. Manufacturing a single EV battery can require hundreds of thousands of litres of water, especially considering the need for clean water in various stages of battery production and cooling processes in the factories. - Vehicle Assembly: While the assembly processes are comparable to ICE vehicles, the added water demand for battery production significantly increases the overall footprint.
ICE Vehicles: - Vehicle Assembly: The assembly of ICE vehicles also requires water, primarily for cooling and other industrial processes, but this is considerably less compared to the EV battery production. The overall water usage in manufacturing is relatively lower for ICE vehicles.
Usage Phase
EVs: - Electricity Generation: The water footprint of EVs during their usage phase depends on the source of electricity. Thermoelectric power plants (coal, nuclear, natural gas) are water- intensive due to cooling needs. For example, it takes about 10.6 gallons of water to generate the electricity needed to drive an EV for one mile. Renewable energy sources like wind and solar have negligible water footprints, but their current share in the global energy mix is still limited.
ICE Vehicles: - Fuel Consumption: The water used during the usage phase of ICE vehicles is mainly indirect, through the production of gasoline or diesel. On average, driving a gasoline vehicle for one mile requires between 0.6 to 0.14 gallons of water, depending on the efficiency of the refining process.
End-of-Life
EVs: - Battery Recycling: Recycling EV batteries can mitigate some of the water usage impacts, but current recycling rates are low (about 5% globally). The recycling process itself requires water, although advancements are being made to reduce this footprint . - Disposal: Improper disposal of batteries can lead to water contamination from hazardous materials. Efficient recycling and proper disposal are crucial to minimizing the water footprint.
ICE Vehicles:
- Vehicle Recycling: ICE vehicles are also recycled, but the water usage in this process is relatively lower compared to EV batteries. The primary concern is the contamination from oils and other fluids, which can be managed with proper recycling practices.
The water footprint of EVs is significantly higher than that of ICE vehicles, particularly due to the water-intensive processes involved in lithium, nickel, and cobalt extraction and the high water demands of electricity generation from thermoelectric power plants. While EVs have the potential to be more environmentally friendly in terms of greenhouse gas emissions, their current water footprint presents a considerable environmental challenge. Addressing this issue requires advancements in sustainable mining, improved battery recycling technologies, and a transition to renewable energy sources to power EVs, which would collectively help reduce their overall water footprint.
Annexure 2
Business Opportunities of EV in India:
The EV market in India is expected to grow at an annual rate (CAGR) of 45.5% in the period from 2022-2030, with sales volumes hoping to cross 16 Mn units by 2030. Based on the business model for EVs, primarily there exist 3 key areas for businesses to invest and build infrastructures around electric vehicles. These comprise:
1. Mobility 2. Infrastructure 3. Energy
Mobility
Businesses in this segment focus on models that use EVs to provide services to the customers. Companies build their business based on customer preferences for services providing alternatives for owning vehicles. This segment includes the following business models and services:
Micro-mobility: used for providing travel services for short distances to one or two passengers at a time. Electric bicycles and electric scooters are among the most popular choices. Companies operating in this space are
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Ride Hailing: will enable a customer to book a cab at his / her own convenience and provide a source of earnings for drivers of private 4Ws. For building this business model, you need to rely heavily on smartphone apps to enable the connection between customer and driver. You will essentially work as Transportation Network Companies (TNCs) and function as a digital marketplace linking self-employed drivers with customers while collecting a fee for making the connection. Key examples of the same are Ola, Smart E, Blu SMart
Car subscription: offer your customers experience of a private vehicle and at the same time save them from paying the heavy upfront cost for owning the vehicle.
Many OEMs such as Volvo, Porsche and BMW72, and other independent platform providers are introducing new subscription schemes. Companies operating in this space are:
2. Charging Point Operator (CPO): generate revenue by operating a network of chargers. Some of the companies working as CSO are: EESL, Tata Power, Magenta Group, Fortum India, Volttic, Charge Zone, etc.
Traction Battery 1. Battery Recycling: As the electric vehicle industry grows, demand for rare elements like Lithium, Nickel, and Cobalt is growing. Battery recycling is a go ahead to meet the limited supply of these elements. Recycling mitigates negative environment, reduces overall cost of electric vehicles and uses circular economy to maximize asset utilization. One company working actively in sustainable battery recycling is Gravita India. 2. Battery Subscription: batteries are provided to vehicle operators on a subscription basis, charging for use on daily or per kilometer rates. 3. Battery-as-a-Service: Manufactured batteries (new) are leased to end-users such as vehicle owners, energy storage projects, etc., for usage. Once the battery
reaches to near its end-of-life (EoL), the BaaS service provider either refurbishes the batteries and make them suitable to be used in applications such as energy storage or behind the meter usage; or recycles the batteries by extracting the raw material from them to manufacture new batteries. Some companies operating in this space are NIO BAAS, Sun Mobility and Esmito.
Energy
EVs provide the companies with an opportunity to invest in businesses around renewable energy and Electric vehicle charging systems.
1. Renewable Energy: Businesses are running for renewable energy production like in the domain of Solar, Hydroelectric and wind. 2. Smart Solutions: the major challenge to the expansion of electric vehicles comes from lack of effective charging. However, if electric vehicles are made part of the grid through a specially modified smart electric vehicle charger, batteries of electric vehicles can provide ancillary services to the power grid while charging the electric vehicle in the most optimal way. This paves way for companies working in the smart solutions space.
3. Virtual Power Plant: a cloud-based/virtual system that aggregates the capacities of heterogeneous distributed energy resources (DER) such as solar power equipment, batteries, electric vehicles, wind turbines, etc. Power utilities, renewable energy operators, energy producers and retailers, VPP operators, and building managers are some of the key stakeholders involved. This system functions for power generation, intra and inter electricity trade, sale and purchase of power in the market.
Annexure 3
GOI EV Policy Initiatives Details:
Electric Vehicles have been the mainstay of Governments across the world especially because of the lower carbon footprint they provide and help to achieve the commitments of the respective countries under international carbon credit protocols for reduction in carbon footprint. Besides, there has been a significant business push through the government for EVs.
As part of international commitments to reduce greenhouse gas emissions, the Government of India has taken a target to transition 30% of vehicles on Indian roads to Electric vehicles by 2030. To achieve this target and to turn its narrative towards e-mobility, GOI offers various incentives for EV adoption and manufacture. Through such incentives, GOI intends to attract citizens to buy EVs and off-set the purchase cost which is higher compared to an internal combustion engine vehicle due to higher input cost of manufacturing EVs.
The flagship scheme of GOI for EVs is FAME-Faster Adoption and Manufacturing of Electric (or Hybrid) Vehicles. Under this scheme GOI allocated a budget outlay of Rs.10000crore for implementation which was further increased to Rs.11,500 crore for FAME-II period from 1st April 2019 to 31st March 2024.
The following financial incentives are offered as direct discount on purchase of EV:
1 2 3 4
Electric Vehicle type
Electric Buses(250kwh) Electric Cars (15kwh) Electric Autos (5kwh) Electric 2-Wheelers (2kwh)
Incentive amount offered (per kwh) Rs.20000/- Rs.10000/-
Rs.10000/- Rs.15000/-
(As price of batteries is the main factor of difference in manufacturing price of EVs and ICEs, incentive for EVs is based on battery capacity.)
Besides, there are State-wise incentives also offered by various states. In addition to all this, there are some other key incentives offered as follows:
? Deduction in Income tax: U/s 80EEB of income tax, EV owners can claim tax rebate up to 1.5lacs on interest paid on EV loan.
? Retrofit-cum-Scrapping incentives: GOI has under the aegis of MORTH (Ministry of Road Transport and Highways) launched the VVMP (Voluntary Vehicle Fleet Modernization program) and is considering retrofit of existing vehicles in good condition to EV with required changes and scrapping incentives for old petrol/diesel vehicle fleets.
e-Amrit Portal
To provide information about these initiatives to various business and consumer related stakeholders, GOI has launched a one stop destination for all kinds of details on EVs called the ‘e-AMRIT’ portal (Accelerated e-Mobility Revolution for India's Transportation) which is a joint initiative of NITI Aayog-the erstwhile Planning Commission of India and the British Government.
Infrastructure Push
To develop charging infrastructure for EVs, GOI has sanctioned an amount of Rs.800 Cr for 7432 public stations for quick charging under the FAME-II scheme.
In a first major development towards this end, Delhi-Chandigarh highway has come out as the most EV-friendly route with installation of 20 Solar-based chargers for EV developed by BHEL.
Manufacturing Push
India has the following positions in the Global Automobile Arena:
Production Linked Incentive (PLI) Scheme
Central Government has approved the PLI Scheme for the Auto and Auto-component manufacturers to be used for development of Advanced Automotive Technology products with budgetary allocation of INR 25938 Cr for FY2022-23 to FY2026-27 period provided under the aegis of the Ministry of Heavy Industries. The scheme intends to focus on ZEVs (Zero Emission Vehicles) which include battery operated EVs and Hydrogen Fuel Cell Vehicles.
Tax Benefit Push
The GOI has reduced the GST on EVs to 5% compared to 28% levied on Internal combustion engine vehicles. This initiative has helped bridge the price difference between EVs and ICEs. Besides, to decrease the net price of EVs, the Finance Ministry reduced the GST from 28% levied on Li-ion batteries to 18%.
Electric Mobility Promotion Scheme- 2024
In March,2024 post-FAME phase II review, the Ministry of Heavy Industries (MHI) has launched the Electric Mobility Promotion Scheme- 2024 with budgetary allocation of Rs.500 crore to be implemented from 1st April 2024 to 31st July 2024, for faster adoption of electric two wheeler and three wheeler for further push to green mobility and flourishing an ecosystem for manufacture of electric vehicles in the country.
The component wise scheme details with budgetary outlay breakup are as follows:
(Source: Ministry of Heavy Industries)
Only 2W and 3W registered as ‘Motor Vehicle’ and fitted with advanced batteries under the Central Motor Vehicle Rules (CMVR) will only be eligible for demand incentives for buyers in the form of an upfront discount in cost price of EVs to enable wider adoption and this will be reimbursed to the OEM by the GOI.
Electricity Price for EV Charging
Although electricity is under States domain and is a good source of revenue for the state governments, still the National Tariff Policy has stated that the electricity usage for EV charging cannot be priced 15% more than the Average Cost of Supply.
Annexure 4
Social Impact of EVs due to excessive hazardous material footprint
Electric vehicles (EVs) are often touted as a sustainable solution to reduce greenhouse gas emissions and combat climate change. However, a detailed analysis of their lifecycle—from raw material extraction to disposal—reveals significant environmental challenges that need to be addressed. This analysis examines the ecological factors, mining practices, supply chain, manufacturing processes, water footprint, and end-of-life disposal to provide a comprehensive understanding of the impact of EVs on society.
1. Raw Material Mining and Sourcing
Materials Required: - EV Batteries: Lithium, cobalt, nickel. - Environmental Impact: High due to toxic fumes, water-intensive mining, and ecological degradation.
- Lithium Mining: Involves significant water use, with one tonne of lithium requiring around 2 million tonnes of water. Examples include water pollution in Tibet and Chile, where lithium extraction has led to substantial water depletion.
- Cobalt and Nickel Mining: Causes land degradation and water contamination. In Cuba and the Philippines, extensive mining operations have led to environmental damage and health risks.
2. Manufacturing Process
Carbon and Water Footprint: - EV Production: Producing an EV emits almost 4 tonnes of CO2, with 46% of the emissions coming from the manufacturing process. This is significantly higher than the 26% from ICE vehicle production. - Water Usage: EV manufacturing is highly water-intensive, with significant amounts of water required for cooling and other processes.
- Example: Volkswagen's efforts to reduce water consumption by recycling wastewater in their manufacturing plants. 3. Operational Phase
Emissions and Water Usage:
- Emissions: While EVs produce zero tailpipe emissions, their environmental benefit depends heavily on the electricity source used for charging. In regions where electricity is generated from coal or other fossil fuels, the indirect emissions can be significant. - Water Usage: EVs require more water per mile driven than ICE vehicles due to the cooling needs of power plants that generate electricity. This is particularly relevant in countries like India, where a large proportion of electricity comes from thermal power plants.
4. End of Life and Disposal
Battery Disposal: - Challenges: EV batteries pose significant disposal challenges due to the hazardous materials they contain. Only a small percentage of lithium-ion batteries are currently recycled, leading to environmental risks if not managed properly.
- Recycling Efforts: Companies like Nissan, Volkswagen, and Renault are investing in battery recycling technologies, but current recycling rates are still low.
Water Footprint Analysis
The water footprint of EVs is a critical environmental concern, particularly during the mining and production stages. The extraction of lithium, cobalt, and nickel requires substantial water use, often leading to severe water depletion and contamination in mining regions. Furthermore, the production process of EVs consumes more water than that of ICE vehicles due to the additional cooling needs in power generation and battery manufacturing.
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