According to a report by economic think tank GTRI, the manufacturing of electric vehicles (EVs) in India will increase its dependence on China for raw materials, mineral processing, and battery production. The report states that about 70% of materials used to manufacture EVs in India are imported from China and other countries. This will result in the release of pollutants during battery making, disposal, and charging. The report also pointed out that EVs have implications on jobs and pollution, and it identified 13 issues related to the interests of consumers, industry, and the government for an evaluation.
China has bought the largest lithium mines in Australia and South America and processes more than 60% of the lithium produced globally. It also processes 65% of cobalt and 93% of manganese. China makes three out of four batteries produced globally. Over 100 Chinese battery units make 60% of the cathodes and 80% of the anodes used in lithium-ion cells.
The report highlights that a typical 500-kilogram lithium car battery uses 12 kg of lithium, 15 kg of cobalt, 30 kg of nickel, 44 kg of copper, and 50 kg of graphite. It also uses about 200 kg of steel, aluminum, and plastics. Mining extraction, transport, and processing of these materials release pollutants and CO2, leading to air and water pollution. The battery’s life is 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.
The report further states that EVs will only increase pollution as the batteries are charged from coal-generated electricity. India generates 60% of electricity from fossil fuels like coal and petroleum, and of this, coal accounts for 50%. It adds that EVs will disrupt India’s auto-component industry with 700 organized and 10,000 unorganized manufacturers. EVs will also end the existence of lakhs of shops/garages selling spare parts, changing oil, and servicing vehicles.
The report also highlights 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 standardization in the charging port for electric scooters, and each firm issues its charging port model. Unless the charging ports are standardized, each maker has to set up separate charging infrastructure across the country.
GTRI co-founder Ajay Srivastava states that “EVs with lithium-ion batteries are at best a work-in-progress innovation. We must understand the long term impact of EVs on jobs, pollution levels, imports, and economic growth.” The report points out that EVs have 13 issues related to the interests of consumers, industry, and the government for evaluation. These 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.
In conclusion, the report states that EVs have a significant impact on the environment, jobs, and the economy. As the manufacturing of EVs in India will increase its dependence on China for raw materials, mineral processing, and battery production, the country must evaluate its long-term impact on various sectors. The report recommends a life cycle impact evaluation for the EVs sector to understand its impact on jobs, pollution levels, imports, and economic growth.
