Indian EV Sector Needs Rs 1,151cr To Flourish, Says Report

Indian EV Sector Needs Rs.1151Cr. To Flourish, Says Report

Principal Scientific Adviser to the Government of India, Ajay Kumar Sood, released a report for building a comprehensive roadmap that outlines research projects in four crucial areas. These areas are energy storage cells, electric vehicles (EV) aggregates, materials and recycling, and charging and refueling. It provided pathways for India to achieve leadership and self-reliance in these areas over the next five years.

The study showed that in the current scenario, for the last two years, because of localization FAME-2 subsidy, OEMs have been importing the cells from other countries and manufacturing and integrating the battery packs in India. It found that, currently, India’s growing electric vehicle sector heavily depends on lithium imports, sourced from other countries. It suggested that to achieve a 30% electric vehicle adoption rate by 2030, the Indian government recognizes the importance of lithium in this endeavor.

The report emphasized the need for lithium deposit exploration which has caught attention for its ability to help reduce the import of lithium. The Geological Survey of India (GSI) initiated numerous lithium-focused projects in various regions. However, the report compared and found India’s lithium reserves to be relatively limited compared to other nations and based on its current trajectory, appears promising. with recent discoveries. This is why, India has initiated projects in various states, confirming a 5.9-million-ton reserve in Jammu & Kashmir and a larger one in Rajasthan’s Degana region. Also, many research institutes and organizations in India are currently exploring novel cell chemistries such as Sodium-ion, Lithium-air, Aluminium-air, Lithium-sulfur, Sodium-air, and Zinc-air, etc. which may act as a potential replacement for lithium-ion batteries. 

These reserves might satisfy 80 percent of India’s lithium demand, but further exploration and sustainable mining methods are needed. The National Mineral Exploration Trust (NMET) also identified significant lithium deposits in Jharkhand’s Koderma and Giridh districts and is exploring mining potential in East Singhbum and Hazaribagh. The Ministry of Mines, Government of India, has reached a significant milestone by signing an agreement between Khanij Bidesh India Limited (KABIL) and Cantamarca Minera Y Energética Sociedad Del Estado (CAMYEN SE), a state-owned enterprise of Canatmarca province, Argentina, on January 15, 2024. This agreement grants KABIL the exploration and exclusivity rights for five blocks to assess, prospect, and explore for lithium minerals

The report also suggested ways to achieve India’s vision to reduce emissions by 45% by 2030 and achieve independence by 2047. The study lays down a framework to help achieve the net-zero emissions target by 2070. This necessitates its use in the widespread adoption of electric vehicles, local manufacturing of energy storage systems, and increased generation of renewable energy to support charging infrastructure. Professor Sood emphasized the current dependency of India’s e-mobility value chain on imports and stressed the importance of reducing this dependence by strengthening domestic R&D capabilities within the automotive sector.

Budgetary Outlay For R&D

As per the study, a budget of Rs. 1151.650 crores has been allocated for research and development in the electric vehicle sector, although final costs may vary based on proposals from research organizations. Due to the urgency and priority of some research topics, collaboration among multiple parties is encouraged to ensure higher success rates. Given the extended timelines and inherent risks associated with these projects, the roadmap suggests the need for new administrative mechanisms, schemes, and review methods similar to successful practices in Europe, USA, Japan, and China.

The report also acknowledges the emerging importance of hydrogen in eMobility, aligning with India’s Hydrogen Mission, alongside advancements in energy storage cell technologies and the entire EV value chain, including materials science and recycling. Efforts are underway to reduce India’s reliance on lithium imports for its growing electric vehicle sector, with initiatives such as the Geological Survey of India’s exploration of domestic lithium deposits. Research institutions are exploring alternative cell chemistries like Sodium-ion, Lithium-air, Aluminium-air, Lithium-sulfur, Sodium-air, and Zinc-air batteries as potential replacements for lithium-ion technology.

This roadmap represents a strategic initiative to position India at the forefront of global e-mobility innovation, ensuring sustainable development and economic resilience in the automotive sector.