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Can indigenous battery technology offer momentum to India’s electric mobility?

Can indigenous battery technology offer momentum to India’s electric mobility?

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Access to sources of lithium in North & South Americas along with cobalt sources in Congo could offer stronger business case for indigenous battery technology.

Historically, India’s transport policy has been predominantly driven by the fossil fuel. Being fossil fuel deficient, even its foreign policies are often oriented towards ensuring energy independence. The latest BP statistics report shows that India’s primary energy consumption grows at a rate of 4.2 per cent per year. The dominance of fossil fuel results in higher pollution and greater environmental challenges. India is highly committed to control pollution and push green energy adoption. In line with the objectives of the National Electric Mobility Mission 2012, the government places strategic thrust on zero-emission mobility.

Under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme launched in 2015, 22 Original Equipment Manufacturers with 80 models are registered for availing demand incentive.By the end of March 2018, the government had offered demand incentives to 186,431 electric or hybrid vehicles amounting to Rs 256.93 crore. Further, financial support to the tune of Rs 280 crore has been sanctioned to 500 electric buses across nine major cities[1].

Despite noble intentions, the government’s ‘Electric Mobility’ initiatives face serious challenges across the value chain. Collective efforts could mitigate emerging challenges and bring desirable success under National Electric Mobility Mission.

Indigenous Battery Technology: Way forward

Batteries, which are the heart of the electric vehicle, are made of lithium as this metal has good power density property and charging and discharging efficiency. Currently, the battery industry in India has high import dependence. Indian Space Research Organization (ISRO) is believed to have developed cost-effective indigenous battery technology. ISRO recently announced it has made battery technology available for commercial purpose on non-exclusive basis.

The Central Electro Chemical Research Institute, Tamil Nadu, along with National Physical Laboratory, CSIR-Central Glass and Ceramic Research Institute, Kolkata and CSIR-Indian Institute of Chemical Technology, Hyderabad collaboratively developed indigenous lithium-ion cells[2], which would be used by RAASI Solar Power Pvt Ltd to manufacture battery. Collaboration and cooperation among research laboratories, academic institutions, and industry augurs well for the market.

Efforts are being made for large scale commercialization of indigenous battery technologies, which can offer economies of scale for lithium battery manufacturing in India. Such initiatives stand to benefit the battery manufacturing industry and the automobile industry which are aspiring to push EV revolution.

Battery Race: Who wins?

In the absence of reliable sourcing of lithium, large scale commercialization of indigenous technology may not be put to effective use. There is a global race to battery and The Wall Street Journal has declared China as the frontrunner[1]. India has plenty of scope to join the front runners.

China’s move to control the cobalt value chain is evident from the fact that it emerged as the largest importer of Cobalt from Congo, the largest producer contributing 58 per cent of the world output, 110,000 tonnes[2] in 2017. Congo’s cobalt production in the first quarter of 2018 rose 34.4% to 23,921 tonnes over the previous year. With rising Chinese investment in mining, cobalt production is estimated to increase in the near future. Cobalt being a strategic metal under the new mining code of Congo, it may increase royalty charges-leading to price escalation.

Big automakers are already hunting for a secured source for importing lithium. Toyota, General Motors, Nissan, Ford Motor and Volvo are now boosting R&D expenditure on EVs. This would push the launch of new EV Hybrid models, resulting in higher demand of lithium. Chinese automakers like the Great Wall Motor invested in mining to ensure lithium supply and gain competitive advantage.

Lithium-ion battery uptakes for storage and EVs are on the rise and, therefore, the price of lithium is moving in the upward direction. In the years to come, secured sourcing of lithium could be absolutely critical to success of the EV story in any country. Lithium seems to be a scarce resource with availability in a handful of countries. About 94 per cent of lithium deposits are concentrated in Chile (36 per cent), Australia (36 per cent), China (14 per cent) and Argentina (8 per cent)[3].

Consultants Roskill estimate “785,000 tonnes of lithium carbonate equivalent a year will be needed by 2025, amounting to a 26,000-tonne shortfall from anticipated supply”[4]. Owing to the advancement in battery technology and rising electric vehicle adoption, lithium supply security has been given supremacy by technology companies across the globe.

Securing Lithium and Cobalt Sourcing: Key to Competitiveness

Australia, Chile, Argentina, Bolivia, China, and the US are important lithium from sourcing destinations. A recent report by Cypress Development Corp indicated that total Indicated Mineral Resource of 697 million tonnes at an average grade of 886 ppm Li, or 3.287 million[5] tonnes of lithium carbonate equivalent (LCE) is present in Clayton Valley, of which 80 per cent could be recovered. Should this excite India?

The US is gradually figuring in India’s diversified energy import mix with increasing import of crude, liquefied natural gas, and liquefied petroleum gas. Now, Indian policymakers areconcentrating on cleaner fuel driven transport. So, battery technology is receiving the much desired importance.

Securing lithium and cobalt supply could help to manufacture indigenous battery at globally competitive price with potential to bring down price of EVs. Moreover, the ‘Make in India’ initiative—a brainchild of Prime Minister Modi — would get boost as Indian automakers like Tata and Mahindra & Mahindra could compete with global leaders in the domestic market as well foreign.

India must invest in Lithium and Cobalt mining assets in above resource- rich destinations. Access to sources of lithium in North & South Americas along with cobalt sources in Congo could offer stronger business case for indigenous battery technology. India must strategically build its EV value chain and ramp up EV manufacturing base. India must design a system for making personal mobility accessible, affordable, clean, safe and efficient. Low penetration of personal cars offers greater opportunity for direct acquisition of EVs and, hence, the potential for higher growth. Policy initiatives including suitable tax incentives for EV manufacturing, sales, purchase, and use must push EV and hybrid vehicle adoption. India’s EV infrastructure, primarily fast charging facilities, must expand at a rapid pace. At this point in time each part of the EV value chain needs fine-tuning to build EV momentum.

[Sayandep Chandra co-authored this article. He is an MBA student at the Department of Management Studies at the Rajiv Gandhi Institute of Petroleum Technology, Jais, Amethi (UP)]

DISCLAIMER: The views expressed are solely of the author and ETEnergyworld.com does not necessarily subscribe to it. ETEnergyworld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

About Sanjay Kumar Kar

Sanjay Kumar Kar holds a Doctorate in Management. He works as an Associate Professor (Marketing & Energy) and the Head of Department of Management Studies at the Rajiv Gandhi Institute of Petroleum Technology (RGIPT).

Source: energy.economictimes.indiatimes
Anand Gupta Editor - EQ Int'l Media Network

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