EVs will increase India's dependence on China for raw materials: GTRI report

New Delhi: Manufacturing of electric vehicles (EVs) in India will increase its dependence on China for raw materials, mineral processing and battery production, according to a report by economic think tank GTRI. The Global Trade Research Initiative (GTRI) also said that there is a need for life cycle impact evaluation for the EV sector.

"About 70 percent of materials used to manufacture EVs in India are imported from China and a few other countries," said the report. "EVs will increase India's dependence on China for raw materials, mineral processing and battery production," it said.

'China uses 80% of the anodes used in lithium-ion cells to create batteries'

China makes three out of four batteries produced globally, it said, adding that over 100 Chinese battery units make 60 percent of the cathodes and 80 percent of the anodes used in lithium-ion cells. China has bought the largest lithium mines in Australia and South America. It processes more than 60 percent of the lithium produced globally.

Challenges posed by usage of EVs

The report pointed out that EVs have implications on jobs and pollution and it identified 13 issues related to interests of consumers, industry, and the government for an evaluation.

The issues include high prices of these vehicles, fitness of EVs for a long journey, performance under extreme weather, increase in power demand, less fit for public transport, increased dependence on China, no reduction in pollution, disruption of the auto component sector, and inadequate availability of lithium.

The report explained that a typical 500-kilogram lithium car battery uses 12 kilogram of lithium, 15 kilogram of cobalt, 30 kilogram of nickel, 44 kilogram of copper and 50 kilogram of graphite.

It also uses about 200 kilogram of steel, aluminium and plastics. Mining extraction, transport, and processing of these materials release pollutants and CO2, leading to air and water pollution, it added.

'EVs to increase pollution as batteries are from coal-generated electricity'

"The battery's life is around 6-7 years, after which it needs to be recycled. Recycling is complex as the battery contains many toxic materials that are challenging to dispose of. Firms promoting EVs talk about zero tail-pipe emissions but are silent on mining and disposal costs," the report said.

Further, it said that EVs will only increase pollution as the batteries are charged from coal-generated electricity.

'EVs will affect lakhs of shops/garages'

"Electric cars only make sense when most power comes from renewable energy," it said, adding that EVs will disrupt India's auto-component industry with 700 organised and 10,000 unorganised manufacturers.

It also said that EVs will end the existence of lakhs of shops/garages selling spare parts, changing oil, and servicing vehicles.

Further, it said that EV is not a global phenomenon and the push for it is coming from Europe, which is introducing the Carbon Border Adjustment mechanism to protect their polluting industry and disrupt global trade.

"There is no standardisation in the charging port for electric scooters. Each firm issues its charging port model. Unless the charging ports are standardised, each maker has to set up separate charging infra across the country," it added.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)