India’s endeavour towards a more sustainable environment has augmented the sales of battery-operated vehicles. The transport sector accounts for 90 percent of pollution in the country. And to mitigate the emerging environmental concerns, the union government has introduced schemes to accelerate the adoption of electric vehicles with the objective of achieving 100 percent electrification of public transport and 40 per cent of personal mobility by 2030. The various schemes by the central government has also helped the country emerge as a manufacturing hub for electric vehicle parts.

Automobile giants have also expressed their confidence in the electric mobility space and have started manufacturing battery-operated cars. The last two years have seen a stupendous growth in the number of two and three electric-vehicles on Indian roads. 

Battery manufacturing has also received a boost due to the paradigm shift. Technological improvements have facilitated the introduction of lithium-ion battery packs in the electric mobility space, which has grown to be a common thread between EV manufacturing and adoption.

Lithium-ion battery packs are the most important part of an electric vehicle and accounts for 50 percent of the vehicle cost. Car makers have proclaimed these batteries as the future of automobile energy. Conservative estimates states that the market for lithium-ion batteries in the country would be $300 billion by 2030.

Presently, India is dependent on Chinese and Taiwanese imports to fulfil the growing demand of lithium-ion cells but companies are investing billions of dollars to produce these cells in the country. Meanwhile, battery giant Exide Industries has informed its plans to set up a greenfield multi-gigawatt lithium-ion cell manufacturing unit in the country.

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Amara Raja Batteries has also announced plans to invest $1 billion over the next 5-7 years to develop a lithium-ion battery manufacturing facility under the Advanced Chemistry Cell (ACC) and Production Linked Incentives (PLI) scheme of the union government.

The company clocked INR 1.2 billion in revenue in Q2FY22 and saw net profit margins higher than 6.6 per cent.

Tata Power has joined hands with MacroTech Developers to provide end-to-end EV charging stations in all its residential and commercial projects across Mumbai and Pune. The company will install EV charging stations in the projects which will be accessible to all residents and visitors who are owners of electric-vehicles.

Tata Chemicals has launched a lithium-ion battery recycling initiative as part of its commitment to sustainability. The company aims to recycle 500 tonnes of used batteries to extract valuable metals such as lithium, cobalt, nickel and manganese.

Despite the dearth in lithium-ion cell manufacturing units, India has an inherent advantage in the lithium-ion battery space. The country is the leader in assembling and battery management system (BMS). Assembly costs are also cheaper compared to other economies.

Speaking on the advantages of lithium-ion batteries, an Exide spokesperson pointed out, “The batteries are less hazardous than lead acid batteries. Though lead acid batteries are easy to manufacturer and cheaper, performance wise it is inferior to the lithium ion battery packs.”

“Lithium-ion batteries make the vehicle much lighter allowing the motor to gain momentum. These batteries are maintenance free and have a much longer life span,” he added.

Drawing a distinction between lead acid and lithium-ion batteries, the industry veteran said, “Both batteries have its respective pros and cons. Lead acid batteries are recyclable and have been dominating the automotive space for sectors. However, handling lead waste is a very strenuous affair. The illegal smelting units that ignore safety norms laid out by the government pose a serious public health hazard. The acid inside the battery is also hazardous and if not disposed carefully can be harmful for the environment.”

“Lithium-ion cells, on the other hand, are eco-friendly and can be recycles easily. However, the amount of lithium present in nature is not much. Hence, if these batteries are widely adopted then sourcing the material will be an issue in the future,” he added.

The company has its range of lithium-ion powered vehicles but the sales are in the grey due to the cost difference. The company is waiting for its FAME II certification which will allow it to claim government subsidy and in turn make its range more accessible to people.

The spokesperson said that electric-rickshaw drivers want to opt for the lithium-ion powered vehicle but the price becomes a barrier.