India has set an ambitious target of achieving net zero emissions by 2070, necessitating a rapid transition to clean energy sources. Central to this shift is the burgeoning electric vehicle market, driven by government incentives and growing environmental consciousness.
Lithium, a key component of EV batteries, has emerged as a sought-after commodity.
"Electric vehicles significantly reduce greenhouse gas emissions compared to conventional vehicles, directly addressing climate change," said Dinesh Arjun, Co-founder and CEO at Raptee. "India's long-term low-carbon development strategy underscores the need for an integrated, efficient, and inclusive transport system to achieve net zero by 2070."
The discovery of substantial lithium deposits in Jammu and Kashmir initially sparked optimism. However, a recent failed auction for a lithium block has raised concerns about investor interest. Meanwhile, reports of EV users returning to petrol or diesel vehicles due to various factors have dampened enthusiasm.
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Recognising the critical role of minerals in the clean energy transition, the Indian government has removed import duties on lithium, copper, and cobalt. This move is expected to lower battery manufacturing costs and boost the EV industry. The Critical Mineral Mission, with its focus on recovery and recycling, also aims to contribute to the net zero goals.
A report by the International Energy Agency (IEA) highlights the rapid cost reduction of lithium-ion batteries since 2010, making them a dominant choice for energy storage.
"Lithium-ion batteries have declined from $1400 per Kilowatt-hour in 2010 to less than $140 per kilowatt hour in 2023," the report states.
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Despite these advancements, challenges persist. "Battery and therefore price of EVs is a two-faced matter," explained Akshay Singhal, Founder and CEO at Log9 Materials.
As India strides towards its net zero aspirations, securing a stable and affordable supply of critical minerals like lithium will be paramount. Balancing domestic production with imports, promoting recycling, and fostering technological advancements are essential to overcome the hurdles and realise the full potential of the electric vehicle revolution.
