- As you are aware, none of the bilateral or multilateral or for that matter any international forum deliberations are complete without the inevitable debates on the electric vehicles in line with the stated objectives of the world communities to curb deadly carbon emissions. The environmental damage caused by the extensive usage of fossil fuels over the last few decades has woken up the global community to address this pressing issue. The effects of environmental degradation resulting in erratic weather patterns have simply added to the miseries of the earth’s inhabitants who continue to pursue the path of destruction rather than earnestly address the ticking timebomb.
PC: Reuters
- Yes, newer environment-friendly technologies are the answer. We know that. However, the moot point to ponder over here is how seriously the global players wish to ensure the future generation doesn’t encounter unprecedented challenges courtesy of our environment-unfriendly practices. One of the welcome technologies developed to curb carbon emissions was going for electric vehicles since the conventional automobile industry significantly contributes to environmental degradation. Tesla led by the maverick billionaire Elon Musk is at the forefront of pushing ahead with electric vehicle technology which has proved to be immensely successful.
- Understandably, there’s a lot of excitement about Tesla opening discussions with the Union Government for setting up a factory in the country. The talks were in the offing for a long time. As reported recently, Tesla is in talks to set up a factory in the country with an annual capacity of 5 lakh electric vehicles – at a relatively lower price band. This is the consequence of PM Narendra Modi’s highly successful recent visit to the USA. Should the project happen, it will change the profile and local EV manufacturing and exports from India. Note that Tesla has a significant presence in China. But as Western manufacturers look to de-risk from Beijing, India could be considered as one of the options. New Delhi should grab the opportunities coming its way.
PC: Alok Rai
- But India still has some way to go before it becomes the next EV hub. Note that EV sales in the country only crossed the 1-million mark just last year. We are way behind at this point in the target of 30% electrification of total mobility by 2030. GOI’s initiatives like FAME providing incentives to EV customers and the PLI scheme for auto components are helping. But the real game lies in mastering battery technology. And this is where China is way ahead of the rest of the world. In 2022, China accounted for a whopping 77% of global lithium-ion battery production capacity. India accounted for just 0.2%.
- Plus, projections suggest that even by 2027 China will remain its dominance in this sector (69% of total production capacity), although the US and European nations will significantly up their game to become the top battery producers in the world. India must seriously expand its battery-manufacturing base to propel its domestic EV industry. It should fast-track the exploration, extraction, and processing of lithium deposits at sites such as the one discovered in J&K – said to hold 5.9 million tonnes of the key element. Also, investing in the next generation of battery technology such as sodium cells should be prioritized. Yes, Musk’s plan is good news but let’s be clear that he won’t take India to the EV top league.
