Lithium security may gain focus in govt’s EV push
India’s push for electric vehicles (EV) may lead to a substantial change in its energy security priorities, with securing of lithium supplies—a key raw material for making batteries— becoming as important as buying oil and gas fields overseas.
The government is exploring measures ranging from leasing of electric vehicles to transferring technology to firms for commercial production of lithium-ion batteries developed by the Vikram Sarabhai Space Centre for use in automobiles, Mint reported. However, India does not have enough lithium reserves for manufacturing lithium-ion batteries.
Indian Institute of TechnologyMadras professor Ashok Jhunjhunwala is in favour of acquiring lithium fields in countries such as Bolivia, Australia and Chile, given its need in manufacturing lithium-ion batteries.
“The government as well as private sector companies should acquire them (lithium fields),” Jhunjhunwala said.
The government plans a mass scale shift to electric vehicles by 2030 so that all vehicles on Indian roads by then—both personal and commercial—are powered by electricity. As part of this programme, the government is also exploring a strategy to task a company with buying EVs in bulk and then leasing them to companies such as taxi aggregators, in an attempt to bring down the cost of such vehicles. The Centre has set a target of 6 million electric vehicle sales by 2020.
Jhunjhunwala’s pitch has found traction with Solar Energy Corp of India (SECI), which plans to explore an EV play. “It (acquiring lithium fields) is a good idea...Lithium will have to be brought,” said Ashvini Kumar, managing director of SECI.
Bharat Heavy Electricals Ltd (Bhel), Power Grid Corp of India Ltd and NTPC Ltd are looking at new businesses in this space. While Bhel wants to make EVs, PGCIL is considering setting up charging stations. Meanwhile, Vedanta Resources Plc is looking at developing storage solutions.
Analysts say India’s plans to make EVs more cost effective and popular will be difficult to implement. The Indian electric vehicles market poses formidable challenges for policymakers, according to consulting firm Bridge to India.
Queries emailed to the spokespersons for the ministries of mines, new and renewable energy, road transport and highways, heavy industries and finance remained unanswered.
Shifting to electric vehicles will check pollution and reduce fuel imports. India paid ₹4.16 lakh crore to buy 202.85 million tonnes of crude oil in 2015-16.