This is the cusp of an electric vehicle revolution in India. And with increasing government backing as well as automakers offering more new electric models, the country is quickly heading down an electrified transportation road. But within this growth is a significant environmental issue that needs to be tackled preemptively — battery waste. Lithium-ion batteries used in EVs have a typical lifespan of around 8 to 10 years. Their end-of-life poses a threat because without proper disposal or recycling, they can be harmful to the planet. These batteries include metals such as lithium and nickel and cobalt and copper, which, if not processed properly, can contaminate soil and water and cause serious environmental and health hazards.

According to the most recent data, EVs accounted for around 7.4% of overall vehicle sales in India, marking a gradual increase in adoption. At this rate, India is expected to produce more than half a million metric tons of spent lithium-ion batteries by 2030. The sheer volume of this waste poses a threat to landfills and ecosystems, but it also represents a powerful opportunity — if handled judiciously, these batteries can be a rich source of valuable materials that can be reinjected into the economy, creating a circular supply chain.

Battery recycling is one of the best answers to this issue. And if India can build a solid and circular ecosystem around battery materials, it can not only avoid future crises, but also reduce its dependency on imports of raw materials. Instead of allowing dead batteries to sit in landfills, they might be mined for their precious contents and reused to create new batteries or other material. Not only does this save on resources — it also minimizes the ecological footprint of extracting new materials.

Countries like China lay the groundwork for how effective policy and innovation can energize large-scale recycling systems. China confronted this challenge a decade ago when its EV market avalanche began. By 2020, the nation was producing more than 240 kilotons of retired EV batteries each year. It built a recycling capacity of nearly 188 kilotons within several years through strategic government support and private sector interest. Underlying this success were strong regulatory frameworks and technology investments that drove high recovery rates.

Cutting and reusing plastic waste is a new approach; the United States and other countries are still contending with the logistical and economic obstacles of recycling. The economics of large-scale battery recycling are also challenging due to high transportation and processing costs, constraining their growth and impact. India has the opportunity to avoid these hazards. With its upcoming demand for metals, relatively lower labour costs, and growing EV market, India is well placed to create a cost-efficient and environmentally sustainable battery recycling system.

So far India’s EV battery making is in a nascent stage. Consequently, a robust battery circular economy has yet to gain traction. However, there is a massive possibility to create a metals and materials recycling ecosystem that matches other sectors like construction, electrical, and automotive needs. India already sources about 38% of its copper demand from scrap. The same pattern is reflected in demand for aluminium and nickel scrap, which could emerge from end-of-life EV batteries over the next decade.

The trick is to keep the recycling process economically viable. Chose technologies with high recovery rates while ensuring that value of reclaimed materials exceeds operational costs. Establishing precautionary measures through decentralisation of collection and pre-processing centres with minimal or no transportation role can also help in systemising the logistics process and reduce transportation expenditure. This would help ensure improved management of batteries and prevent waste from accumulating at a central point.

For one, India would benefit from the lessons learnt by China through letting unbridled players to operate in the battery recycling sector. Many of these informal operators flout safety or environmental regulations, creating shadow economies and greater risk. India can build an eco-friendly and effective recycling industry through good regulation and monitoring.

Policy incentives need to be bolstered so that businesses choose to invest in recycling; Public awareness campaigns will be crucial in educating citizens about the importance of responsible battery disposal and recycling. The Battery Waste Management Rules 2022 are a step in the right direction but, for a comprehensive ecosystem, more efforts are needed.

The EV story in India is just getting started. The choices we make today will not only influence the future of mobility, but also the future of sustainability as a whole. India has a unique opportunity to lead by example by promoting low-carbon technologies, creating a circular economy around critical metals, and learning from the mistakes of other regions. To make this revolution truly green and sustainable, we need to turn waste into value.

Article By
Sourabh Gupta

In the coming years, electric vehicles might turn out to be one of the most impactful disruptions for India on the economic and environment fronts. Clean and sustainable transport solutions are therefore becoming increasingly important, no more so than for new segments of mobility such as small businesses, farmers, and micro-entrepreneurs who increasingly depend on efficient mobility to sustain their business. If scaled adequately, the EV sector is not only expected to be a pollution-reduction tool but also contribute towards energising India’s economy, providing increased connectivity and enhancing the country’s energy security.

India’s targets for electric mobility are ambitious — 80 percent of all two- and three-wheelers, 40 percent of buses and 30 percent of private cars are to be electric by 2030. Realizing these objectives will prove challenging, but if delivered, they could substantially enhance urban mobility, reduce pollution and lower reliance on fossil fuels. Logistics, commuting and small-scale transport operations would be more efficient and cheaper, benefitting the economic activity.

Allegra at Montalto is a gracious New World-Italian, four-course celebration. On the policy side, supportive measures are being introduced by the government to create demand and supply in order to alleviate the issue. Financial incentives and regulatory reforms are prompting automakers and private companies to make investments in EVs, charging infrastructure, and battery production. And the payoff for it all could be massive, worth an estimated $206 billion per market by 2030 and up to 50 million jobs — direct and indirect, according to analyses of the sector.

One field where the advantages from electrification would be most significant is public transportation, especially when it comes to buses. With an estimated 2 million buses across India, the majority run by private operators, it is a massive opportunity. With better access to finance and the right business models, electrifying these fleets can reduce the cost of fuel, lead to less air pollution, and provide a better ride experience for passengers.

Private companies and global institutions are rising to the challenge, and we have a role to play in expediting this transition. The International Finance Corporation (IFC) has been looking at potential investments, both debt and equity, to finance the adoption of electric buses and trucks in India, for example. There are also companies like Mahindra Last Mile Mobility that deal with three-wheelers and Napino, which makes electronics and EV components, that IFC is supporting. Also, funds focusing on developing India’s domestic two-wheeler EV ecosystem — which can both create jobs and become one of India’s competitive features in global supply chains — are getting investment.

Battery manufacturing is another area on the supply side that is quickly changing battery ng. EV cells have been traditionally a component that has been reliant on imports for India but there is an ongoing push to localize this critical part of the EV ecosystem. Estimates indicate that in five years, India might source as much as 13% of its EV battery cell demand from local production, compared to practically nothing today. Similarly, recent actions that include removing import duties on key materials needed to produce lithium-ion batteries signal the government’s preparedness to promote domestic production.

But local battery production will only help so much if charging infrastructure doesn’t grow in lockstep. At the moment, wide gaps in charging availability — especially in rural areas — are hampering broader EV adoption. The FAME scheme: The government aims at expanding the fast and slow charging networks and initiatives like this will play a central role. Such efforts are essential to ensure EVs are a realistic option in more than just major cities nationwide.

India’s EV revolution is not only a national imperative, but also an international one. And the transition to electric transport helps to seek the cross-border collaboration, joint ventures and technology transfers. By collaborating with foreign companies, Indian battery and auto makers will be able to accelerate innovation and meet soaring demand domestically and globally. Institutions such as IFC could play a mediating role in enabling such strategic partnerships and in promoting the ecosystems of skilled workforces and technology needed to support.

At home, a successful EV transition means one where transport workers earn better and are exposed to fewer harmful emissions, where we drive on quieter streets and have smoother logistics. Together, these changes could enhance quality of life and strengthen sustainable economic growth. If India keeps to this right blend of policy, investment and innovation, electric vehicles could just be the life raft the country needs.

Article By
Sourabh Gupta

Electric vehicle (EV) registrations in the country have seen a significant surge, with total registrations crossing the nearly 1.97 million (1,966,025) mark in the financial year, a YoY increase of 17% over the 1.68 million (1,682,312) units recorded the previous financial year. This trend demonstrates the ongoing momentum for EV adoption nationwide, with the two-wheeler and three-wheeler categories remaining the most active segments in this transition.

Out of all EV categories, electric two-wheelers lead the charge in switching to sustainable mobility even this year. 1.15 million of these registrations were delivered to this segment, growing by strong 21% y/y. The EV two-wheeler segment now makes up of over 6% of the total two-wheeler market-share in India. Several previous reasons accounted for this surge, from affordable models to growing consumer awareness and aggressive competition between legacy and new-age manufacturers.

Manufacturers like Bajaj Auto, TVS Motor Company, and Hero MotoCorp stepped up efforts in the electric two-wheeler space, introducing new models and investing in faster production capabilities to meet the growing demand. Their efforts, along with the price of petrol and environmentalism, have boosted the appeal of electric scooters and motorcycles for daily commuters and city riders.

Electrics cars and SUVs, which make up the passenger vehicle segment, were also high flyers. More than 100,000 electric passenger vehicles were registered during the financial year, up 18.2% on the previous year. While EVs made up only roughly 3% of the total passenger vehicle market at the time, the segment is growing steadily, with many manufacturers jumping into the fray.

After strong sales numbers in previous months, Tata Motors kept its lead in the EV passenger vehicles segment as the brand scored a massive market share in October 2023. JSW MG Motor India came in at number two with Hyundai and Mahindra & Mahindra entering the fray in the EV space with new electric car offerings over the course of the year. Several other carmakers are also gearing up to enter the EV space soon — these include Maruti Suzuki, Toyota, Renault, Volkswagen, Honda, Skoda and Nissan. Their inclusion will only expand the region of the EV landscape and help make electric cars available to more consumers.

Electric three-wheelers, on the other hand, witnessed around 700,000 units of registrations in the 2022-23 fiscal year, which meant a year-on-year growth of 11 percent. This means that 57.42% of total registered three-wheelers in India are now EVs, thus making it the most electrified segment of India’s transport ecosystem. They are particularly popular with small business owners and last-mile delivery operators, who favour electric rickshaws and cargo vehicles for their lower operating costs coupled with greater availability.

Few would have imagined that four years later, it would be the case, with even two-wheeler sales doing some serious heavy lifting to achieve this impressive growth — not that it is all down to the Indian government’s response to the high prices of fuel and crude oil. Recent policy intervention like the Electric Mobility Promotion Scheme (EMPS), the subsequent PM EDRIVE and PM e-Sewa initiatives were vital in driving the EV adoption according to the Society of Indian Automobile Manufacturers (SIAM). These policies aim to stimulate the domestic EV industry with benefits, subsidies, and infrastructure development, which lower the net cost of ownership and encourage the large-scale adoption of electric vehicles.

As the market matures, the transition towards electrification in India is likely to further accelerate. Automakers are then adapting their strategies to match that trend, pouring money into new technologies, stretching out their EV portfolios. The EV ecosystem is being fortified in parallel with battery manufacturing, charging infrastructure, and recycling solutions.

The way consumers are also changing, with a lot of them realizing that electric mobility is a long term proposition. EVs have also become an attractive individual and commercial alternative to other vehicles, offering better driving ranges, faster charging times, and lower maintenance costs than before.

Though hampered by certain drawbacks, such as the scarcity of charging stations and the higher costs of acquisition, the electric vehicle segment in India appears to be maturing. Thanks to stable policy support, increasing competition, and greater awareness, EVs are slowly but surely transitioning from niche to mainstream.

This increase in EV registrations sends a strong message and reinforces the fact that India is on the right path towards achieving its green mobility targets. The way forward entails continued coordination between the government, the private sector, and consumers to develop a strong and sustainable electric mobility ecosystem that addresses the nation’s environmental, economic, and energy security goals.

Article By
Sourabh Gupta