New Delhi: India is taking the lead in the global shift to electrification by introducing several electric vehicles or hybrid vehicles. According to market research firm Jato Dynamics, Electric vehicle (EV) sales grew 112% YoY to 50,284 units during April-September 2023. During the same period, sales of hybrid vehicles grew a whopping 1,195% YoY on a smaller base to 31,686 units. Thus, India has already begun shifting to EVs and hybrids. But the question is whether the infrastructure is ready for such a major shift in the automobile industry? Here is a close look at the current situation in the country.Q.1 What is the present status of EV charging ecosystem, (including home stations), in India and the projected demand?
The key barrier on the path of adoption of EV or Hybrid Vehicles is the lack of public charging infrastructure in India. It is reported that there were a total of 6,586 public charging stations by March 2023 out of which 419 were on National Highways. The highest number of EV charging stations was in Delhi (1845) and then in Maharashtra (660) followed by Uttar Pradesh (406).
The Confederation of Indian Industry (CII) report on ‘Changing Infrastructure for Electric Vehicles’, states that India might require a minimum of 1.32 million charging stations by the end of 2030 to meet the rapid demand for electric vehicles. It also has stated that it is projected that by 2030 around 106 million EVs are going to be sold each year. To meet the demand for charging stations, India requires ideally 1 charger for every 40 EVs, thus it demands for over 4 lakh charging stations annually. Cumulative charging stations annually are expected to be 1.32 million by 2030. However, the growth rate of EV charging stations doesn’t meet the stipulation for electrification.
“When it comes to charging infrastructure, there’s an immediate and compelling need for acceleration. The stakes are high, as the risk of falling short of our target to achieve a 30% penetration of electric vehicles (EVs) by 2030 looms large due to this shortfall. The establishment of a robust nationwide charging network is not just a preference but an absolute necessity to propel the widespread adoption of electric vehicles across India.” said Sohinder Singh Gill, CEO, Hero Electric Vehicles India.
Q.2 Why is recycling of EV batteries necessary?
Now another question arises: What will happen to the end-of-life EV batteries (about 10-15 years). One way to use the batteries after their shelf life is to recycle them. According to Niti Ayog, by 2030 EV battery recycling market is going to expand to 128 GWH from 2 GWH in 2023.
For electric mobility, electric battery packs are required which comprises lithium, nickel, and cobalt. All three are precious resources that are extracted from our mother Earth just like any fossil fuel. Regular extraction can create a dearth of these resources. Thus, if we recycle these EV batteries we can extract the available resources (if any) and can contribute in making smaller batteries. This not only will use the material sufficiently but also reduce its manufacturing cost thus making EV batteries more affordable.
As EV batteries have other materials too like plastic, iron, aluminium, silver, and gold in their circuit, these can also be reused. This reduces both the mining and manufacturing expenditure, which will reduce the EV cost, as EV Batteries are the most expensive part of EV vehicles.
The Batteries can turn out to be hazardous if not decomposed properly. Some of the materials used in batteries are toxic, thus when they end up in landfills they can be environmentally unfriendly by contaminating the water and soil they get in contact with. Burning these batteries will release toxic and harmful chemical gasses in the air, making the air quality extremely poor.
BBC reports that the European Union had given a proposal to enable the EV manufacturers accountable to the EV batteries after their shell lives. Adding to this Volkswagen has opened its recycling plant for their manufactured EV batteries where they recycled more than 3,600 batteries all across the world in the commenced year. Renault and Nissan have also opened their manufactured EV batteries recycling plant.
Q.3 What are the supply chain issues in Lithium manufacturing?
One of the main components of EVs is lithium, which is not easily available in the world. As per reports India is dependent on the imports for lithium from Australia and South America. However, in February as per the Ministry of Mines, more than 5.9 million tonnes of lithium is found in Jammu and Kashmir. This comes as a hope for India, to manufacture its own lithium-found batteries, it will not only reduce the cost of lithium material thus making EVs more affordable but also increase employment.
“The development of local capacities and capabilities for manufacturing lithium battery cells and recycling batteries is an ongoing process. These projects are still in their initial stages, and it’s imperative to recognize that implementing such technologies from the drawing board to mass production is a complex and time-consuming journey. However, the industry remains committed to seeing these projects through to fruition” said Sohinder Gill to ETAuto.
As per the reports, some 1600 tonnes of lithium resources were discovered in Karnataka last year. On 2nd October 2023, large reserves of lithium and other minerals were discovered in Jharkhand. However, this is just the beginning. The demand for lithium is huge but the evacuation of lithium has still not begun thus making India dependent on the imports.
The current state of India’s capability to transit the lithium found from Earth to battery-quality lithium is not up to the mark. Lithium mines can be a ray of light for India but it is still a long way to go.
Commenting on that Pankaj Sharma, Co-Founder and Director at Log9 Materials said “At present, India lacks the advanced capabilities required to efficiently convert raw lithium extracted from the Earth into high-quality battery-grade lithium. To bridge this gap, what India really needs are material science companies, battery material science companies, and experts. In essence, it’s not just about finding lithium deposits; it’s about having the technology and expertise to leverage any raw material that gets discovered in India, then have the capability to process and make it battery grade.” to ETAuto.
Q.4 Which are the companies that recycle Lithium-ion batteries?
Log9: Log9 not only makes batteries but also recycle them in collaboration with such companies as Lohum and Metastable.
Pankaj Sharma said,“Our partnership with Lohum and Metastable underscores our dedication to ensuring a sustainable lifecycle for Log9 batteries. We not only manufacture cells and batteries but also actively explore opportunities to incorporate recycled materials back into our cell production. When our batteries reach the end of their lifespan, we are working diligently to establish a responsible and eco-friendly recycling process. By doing so, we create a fully circular and sustainable business model.”
Tata Chemicals: Tata Chemicals launched a lithium-ion battery recycling plant in 2019. The plant carries an objective of commercial recovery of cathode active materials from the already-made lithium-ion batteries or cells.
The plant recuperates valuable metals like Cobalt, Lithium, Nickel, and Manganese at more than 99% purity within Industry-leading levels of yields. The firm aims to reduce the environmental pollution and save energy, and natural resources.
Attero Recycling: Attero Recycling is another leading electronic waste Li-ion battery recycling company that was planning to invest INR 600 crore to set up a lithium-ion battery recycling factory in Telangana in 2022. This plant will boost the battery recycling capacity to 19,500 tonne by 2023 end from its present capacity of around 4,500 tonne. Attero had signed an MoU with the Telangana government to enhance and strengthen the li-ion battery recycling plant in the country and create a li-ion battery recycling hub for India’s operation. This will enhance employment and also reduce the cost of EVs.
Q.5 What is the government’s initiative to promote lithium-ion battery recycling?
To resolve the issue of battery recycling the Government of India released a draft ‘Regulations for Battery Recycling’ in August 2022 known as ‘Battery Waste Management Rules 2022’.
The GoI provides export-driving schemes like the EPCG scheme or Export Promotion Capital Goods Scheme and MEIS or Merchandise Exports from India Scheme to promote the lithium-ion battery recycling industry in India and to mark its presence in the international market. These schemes offer financial incentives and aids to exporters, thus making it remunerative for the battery recycling companies to explore the global platform.
On June 2, 2023, the Ministry of Electronics and Information Technology also known as MeitY transferred cost-effective lithium-ion battery technology to 9 recycling industries and some startups. This move comes as part of the Mission LiFE under the “Promote circularity campaign”.
