Lithium Powered Electric Vehicles:directing India Towards Clean Energy Goals

By Author: Preetam U. Revankar
Total Articles: 5
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The Geological Survey of India made a significant announcement on 10th February 2023 regarding the discovery of 5.9 million tonnes of untapped lithium reserves in Jammu and Kashmir region. This discovery carries immense implications for India’s environment, international relations and political landscape, as lithium is a key material used in lithium-ion batteries, which power electric cars and energy storage systems. India plans to extract and refine the lithium reserves and auction them to private entities. This will reduce India’s dependence on importing minerals form other countries and boost the development of the country’s electric vehicle sector. Additionally, it will provide India with an opportunity to meet its clean-tech and clean-energy goals.

Lithium a Valuable Resource – Why?
Lithium is important for electric vehicles because it is a key component in batteries used to power them. Lithium-ion batteries have emerged as the preferred type of battery for electric vehicles because they are lightweight, have high energy density, and are rechargeable.
Lithium-ion batteries are made up of several ...
... components, including a cathode, an anode, and an electrolyte. The cathode is typically made of a lithium-based material, such as lithium cobalt oxide, lithium manganese oxide, or lithium iron phosphate, while the anode is typically made of graphite. The electrolyte is typically a lithium salt dissolved in an organic solvent. Therefore, the availability of lithium is critical for the production and scaling of electric vehicles. As demand for electric vehicles increases, the demand for lithium-ion batteries is also expected to grow, making lithium a vital component for the electric vehicle industry.

Discovery of Lithium Reserves in India and its Impact
In recent years, India has made significant progress in the exploration and development of its lithium reserves. The Geological Survey of India (GSI) has identified lithium reserves of around 14,000 tonnes in the southern state of Karnataka, in addition to smaller reserves in other parts of the country. The GSI has also initiated further survey to explore lithium reserves in other regions of the country, including the states of Andhra Pradesh, Jharkhand and Rajasthan. These efforts have the potential to significantly expand India’s lithium reserves and establish the country as major producer of lithium.
The Indian Government has also taken steps to support the development of country’s lithium reserves and promote the growth of the clean energy sector. In 2020, the government announced a production-linked incentive scheme for battery manufacturing, which aims to attract investment and boost domestic production of lithium-ion batteries. Several Indian companies have also entered the lithium mining sector, which include Indian conglomerate Adani Group has signed a memorandum of understanding with a mining company to jointly explore opportunities in the lithium value chain.

Global Scenario of Lithium : Exploration and Mining
The majority of global lithium reserves are currently located in South America, particularly in the ‘Lithium Triangle’ region consisting of Bolivia, Chile, and Argentina. Other significant lithium-producing countries include Australia, China, and Canada. Several companies have established operations in these regions to explore and mine lithium reserves. For example, Albemarle, one of the world’s largest lithium producers, has operations in Chile, Australia, and the United States. Additionally, SQM and Livent Corporation are major players in the lithium industry, with operations in South America.

Electric Vehicle Policy in India
The Union Budget 2022 highlighted the need for e-mobility encouraging EV adoption throughout the nation to focus on sustainable and clean mobility solutions.
The EV policies include monetary subsidies on EV purchases, exemption from road tax, vehicle registration fees and low loan interests on EV purchases. It also includes initiatives on public transportation and last mile delivery providers to purchase electric vehicles in large quantities.

FAME India Scheme
The FAME India (Faster Adoption and Manufacture of Hybrid and Electric Vehicles) scheme is a government incentive scheme for the promotion of electric and hybrid vehicles in India. In simple terms, the incentive is provided in the form of subsidies to automotive manufacturers of electric vehicles and infrastructure providers of electric vehicle production and the creation of electric transportation infrastructure.
FAME’s focus lies on four major areas : Technology Development, Demand Creation, Pilot Projects and Charging Infrastructure – covering Electric and Hybrid technologies like Mild Hybrid, Strong Hybrid, Plug-in Hybrid & Battery Electric Vehicles.

Future of Electric Vehicles in India
India has been making significant strides in the production of electric vehicles (EVs) in recent years. The Indian Government has been promoting EVs through various initiatives, such as the Faster Adoption and Manufacture of Hybrid and Electric Vehicles (FAME) scheme, which provides financial incentives to manufactures and buyers of EVs. As of 2021, several major automakers, both domestic and international are producing EVs in India. Tata Motors, Mahindra Electric and Hyundai are some of the leading manufacturers of electric car in India and Bajaj, TVS are manufacturers of electric two wheeler's in India. In addition to this several startups such as Ather Energy, Revolt Motors and Okinawa Autotech are also producing electric two wheeler's. Despite the growth in production, EVs still make up a relatively small percentage of total vehicles sales in India. According to the Society of Indian Automobile Manufacturers (SIAM), electric car sales in India stood at 5,000 units in FY 2020-21, which is less than 1% of total passenger vehicle sales in the country but in FY 2021-22 electric car sales in India stood at over 15,000 units. However, the Indian Government has set ambitious targets for the adoption of EVs, aiming to achieve 30% electric mobility by 2030. To achieve this target, the government has announced several measures such as tax incentives, subsidies for charging infrastructure and other policy initiatives to promote the use of EVs.
As one of the world’s largest automobile markets, India’s country wide electrification will be a turning point for the entire world and the country itself. Driven by the Indian Government’s push towards sustainable mobility, growing consumer demand for new technologies and the emergence of private players with an interest in EV technology, the future of electric vehicles in India looks promising. According to JMK Research, a staggering 4,55,733 EV units were sold in FY 2022. India’s Ministry of Road Transport and Highways also claimed that 13,34,385 electric vehicles in India were on road as of July 2022. These numbers are sure to increase, with central and state governments, as well as private sector players, actively pushing for greater electrification on Indian road. India is the world’s third-largest oil importer, but the transition to EVs will significantly reduce its oil dependency. If India can meet its ambitious adoption targets, the country will create a model that other emerging economies can replicate. Additionally, with India’s population of 1.4 billion and its rapidly growing economy, the country is certain to be influential players in the global EV markets today. The full adoption of electric vehicles in India will represent a major step in the right direction towards sustainable development in worldwide mobility.

MBA Graduate, working as a Assistant Professor in Management Department at R L Law College, Belagavi, Karnataka, . Having a 9 years teaching experience in various subjects like International Business, Entrepreneurship Development, Business Environment, Business Communication, Production And Operations Management and Business Statistics.