New Delhi: India is perfectly poised to meet the growing demand for reliable EV solutions in countries like Indonesia, the Philippines, and nations in Africa, Sudhendu Sinha, Adviser, NITI Aayog said at the “Sustainable Supply Chains for EV Batteries” hosted by ICRIER-IIS.
“We’re focusing on exporting EVs and batteries. Our goal, as outlined in our economic survey, is to produce close to 10 million vehicle units annually by 2030, potentially creating 50 million jobs,” said Sinha.
However, as the momentum in the two-wheeler market remains undeniable, challenges in the supply chain are evident. “Three years ago, our expenditure was 800 crore, but it has now increased to 2,400 crore, marking a threefold increase. This signifies our escalating needs for the supply chain to bolster,” pointed out Gaurav Joshi, Deputy Secretary, Ministry of Heavy Industries.
The speaker also warned about a possible supply chain crunch anticipated around 2026, emphasizing the need for resilience and innovation amidst potential disruptions.
Furthermore, the discovery of lithium mines in J&K and Rajasthan has kindled hope. However, “it can take between 7 to 16 years to extract the lithium and make it available for the industry,” the official remarked. This timeline underscores the importance of focusing on sustainable recycling of imported materials like lithium, nickel, and cobalt.
In the public transportation sector, the results are evident. “The FAME scheme emphasizes public transportation. We have sanctioned 7,032 buses in FAME II, committed to 6,800, and currently, about 3,000 are being delivered. Our efforts from 2019 are yielding results in 2023,” revealed Joshi.
Moreover, while the battery EVs have become a significant market player, they are just a fragment of the broader EV story. Fuel cells and hydrogen-fueled vehicles are also emerging as strong contenders.
In terms of battery technology, while lithium-ion dominates the current EV and grid storage landscape, the risk of resource bottleneck looms large. Sanjiva De Silva, Counsellor – Energy and Resources, Australian High Commission highlighted, “We’re witnessing material input competitions across sectors. In Australia, there’s ongoing research into vanadium flow batteries at the grid scale. If these technologies become mainstream, it would free up more lithium for EV use.” This underscores the importance of diversified technological approaches to avoid potential pitfalls.
As India strides forward in its EV journey, a holistic approach considering demand, supply chains, technological innovations, and global market dynamics will be paramount for the nation to achieve its lofty ambitions.
