Energetica India Magazine March 2022

Across the world, government mandates and climate action targets are spurring the energy and transport sector to shift from fossil fuels to renewable energy and battery-powered electric vehicles (EVs). Lithium-ion batteries (LIBs), that are widely used in laptops, smart phones and other gadgets, lie at the heart of this transition. While LIB application in EVs is expected to grow globally from USD 27.30 billion1 in 2021 to USD 154.90 billion in 2028, their usage in other sectors like energy, for large-scale integration of renewables, is further ex- pected to raise demand. This shift, from a fuel-intensive to a mineral-intensive energy system2, will greatly increase demand. This rise in demand would impact the battery sup- ply chain and place additional pressure on the world’s scarce mineral resources- lithium, cobalt and other metals – that are geographically concentrated in just a handful of nations. India, a member of the global EV30@30 initiative, is aiming for a 30% EV sales share by 2030 and has launched sever- al policy initiatives to further this goal. However, this race to electrification fac - es two daunting challenges. On one hand is the urgency to meet this escalating de- mand for EV batteries minus heavy im- port dependencies. On the other hand, India must pause and consider the sheer volume of spent EV batteries. Developing a sustainable battery eco- system is key to a resource-efficient transition. Not only does India need to ramp up its battery manufacturing ca- pabilities, it also requires forward-look- ing strategies, such as the creation of a cross-connected battery supply chain, through the recycling of critical raw materials. The creation of a circular economy for batteries could play the dual role of fostering the government’s clarion call of becoming self-reliant (or Aatmanirbhar) as well as furthering In- dia’s vision of reaching a USD 5 trillion economy by 20253. 36 energetica INDIA- Mar_2022 ELECTRIC VEHICLES Dr. Parveen Kumar Senior Program Manager- Electric Mobility, Cities Program, WRI India, New Delhi Pawan Mulukutla Director- Clean Mobility & Energy Tech, Cities Program, WRI India, Bangalore Roadmap for a Sustainable Electric Vehicle Battery Ecosystem in India Developing a sustainable battery ecosystem is key to a resource-efficient transition. Not only does India need to ramp up its battery manufacturing capabilities, it also requires forward-looking strategies, such as the creation of a cross-connected battery supply chain, through the recycling of critical raw materials. The creation of a circular economy for batteries could play the dual role of fostering the government’s clarion call of becoming self-reliant (or Aatmanirbhar) as well as furthering India’s vision of reaching a USD 5 trillion economy by 2025.