This World EV Day, let's commit to accelerating up India's EV Industry

The impact of climate change is real. Erratic climate events are disrupting lives and devastating fragile ecosystems. If unchecked, climate change will drastically impact our ecosystem. The most effective way to stem the tide of climate change is by transitioning from fossil fuels to more sustainable energy sources.

A Green Alternative to Fossil Fuels

Electric Vehicles (EVs) are the most effective alternative to vehicles powered by petrol and diesel. Their adoption is rapidly increasing worldwide, particularly in developed countries and China.

In India, demand for EVs is expected to increase at a CAGR of 66.52 per cent until 2029. By then, the EV market is likely to touch USD 114 billion from its current USD 3.21 billion. By the end of this decade, EVs will make up 20 per cent of vehicles sold in India. For Indian EV manufacturers, the Indian market presents a massive opportunity.

Crucial Role of Batteries in EVs

Batteries are the heart of EVs. They're the most expensive component, accounting for almost half the cost of an EV. If Indian manufacturers aspire to be world leaders in EV manufacturing, they must build their domestic capabilities and be part of supply chains that make the highest-quality batteries at competitive prices. Rather than importing batteries from China, as manufacturers currently do, they must source domestically, which will protect the industry from geopolitical risks and make it more resilient.

Recycling to the Rescue

For Indian manufacturers to wean away from imports, they must help nurture a home-grown battery recycling ecosystem by collaborating with Indian recyclers. Sourcing recycled batteries domestically is an effective way to acquire high-quality batteries at competitive prices. There are millions of EVs on Indian roads today. Once these vehicles reach the end of their lives, their batteries can be recycled to produce the next generation of batteries. Recycling will help optimise resources and guard against fluctuations in global prices for cathode and anode materials and volatile currency movements.

A domestic battery recycling ecosystem, therefore, can confer a competitive advantage to Indian EV manufacturers by allowing them to build quality products at competitive prices.