India’s Path to Affordable EVs: Lithium Reserves and Domestic Battery Manufacturing

- Advertisement -

The Indian Electric Vehicle (EV) market has been hampered by the high costs of lithium-ion batteries, primarily because around 70% of the required Li-ion cells are imported from China and Hong Kong. These batteries comprise a significant portion, 50-60%, of an EV’s overall cost. However, a shift is on the horizon, promising more cost-effective EVs in the country.

Two primary drivers are steering this change. First, global lithium prices have decreased due to factors like reduced electric car subsidies in Europe and China, leading to a 30% reduction in costs this year alone. This trend means reduced battery prices, making EVs more affordable.

But more significantly, substantial lithium reserves have been identified domestically in India. The first-ever discovery in Jammu and Kashmir and another in Degana, Rajasthan, are pivotal. Estimates suggest these reserves could meet roughly 80% of India’s lithium demand, drastically cutting reliance on foreign imports.

- Advertisement -

This discovery aligns seamlessly with India’s ambition to build a robust domestic lithium supply chain. By tapping into these reserves, India can witness reduced EV production costs, promoting broader accessibility. The nation’s goal isn’t just about harnessing resources; it’s about achieving self-sufficiency in the EV industry. Parallel with these developments, the Indian government has rolled out initiatives like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) and the Production-linked Incentive (PLI) scheme. These programs, alongside waiving customs duties on essential battery manufacturing capital goods, are poised to make EVs even more affordable.

Current figures highlight India’s strides in this sector, with the nation manufacturing 81% of the lithium-ion batteries for EVs. The market projection for these batteries is USD 5.03 billion within five years, reflecting significant growth. To truly capitalize on these opportunities and make EVs widely accessible, India needs a multipronged approach. It includes improved financing for EV manufacturers, bolstered manufacturing infrastructure, and a strong domestic supply chain.

Given the country’s advancements in renewable energy, particularly in remote areas, India is primed to support the widespread adoption of EVs. The discovery of domestic lithium reserves and a determined move towards self-reliance in battery manufacturing might just herald a new era of affordable EVs in India.

- Advertisement -

Most Popular Articles

Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

“AIC-T-Hub Aims To Grow Startups So More Indian Unicorns Can Contribute To The GDP”

0
T-Hub has collaborated with Atal Incubation Centre (AIC), initiated by the Atal Innovation Mission to incubate semiconductor startups, fostering innovation for India’s advancement in...

Pros And Cons: Boult’s Varun Gupta On Contract Electronics Manufacturing

0
While contract electronics manufacturing is not a new concept in India, it has lately picked up a pace never seen before. But what has...

Buzz

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

ASUS IoT And BRESSNER Technology Launch CTOS

0
The collaborative approach seamlessly integrates advanced features across CTOS solutions, fostering synergy. ASUS IoT has recently unveiled a strategic collaboration with BRESSNER Technology, aiming to...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Important Sectors

Renault Kwid, Maruti eVX: 15 Upcoming EVs Under ₹10 Million (1 Crore) In India

0
Should you wait or buy an electric car from the existing options in India? Well, that’s a question only you should answer! However, if...

Commercial EV Finance: Empowering Younger Companies To Drive Growth

0
While electric three-wheelers have emerged as the face of EV adoption in India, startups engaged in their retail need increased access to finance for...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

Manufacturing

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...