BENGALURU: It is well accepted that the way to attain ‘Net Zero’ emission is by reducing the use of conventional fuels and shifting to renewable sources, especially in the transport sector, as vehicular emission is the largest contributor to global warming.
While everyone is promoting the use of electric vehicles (EVs), terming it the way ahead, there are others who point to the gray area of extraction of lithium -- a crucial component in batteries, manufacturing of lithium-ion batteries and disposal once they are used. Even as central and state governments are promoting EVs, experts say that awareness should be created among people and CNG or gas-based fuel too should be promoted equally.
In February 2024, the energy ministry announced that Karnataka had the highest number of EV charging stations in the country. The Bureau of Energy Efficiency, under the ministry of power, stated that the state has 5,059 charging stations, of which Bengaluru alone has 4,281, constituting 85% of the state’s infrastructure. Maharashtra has 3,079 charging stations, Delhi 1,886, Kerala 958, Tamil Nadu 643, Uttar Pradesh 583 and Rajasthan 500. But in the number of EVs, Uttar Pradesh topped the list with 7.45 lakh vehicles, followed by Maharashtra at 4.15 lakh and Karnataka 3.51 lakh. In Karnataka, the number of EVs registered jumped from 9,703 in 2020 to 33,306 in 2021 and to 1.52 lakh in 2023, as per state government records.
The Karnataka government is promoting EVs aggressively, but it is struggling to improve the infrastructure for EVs. The energy department is talking to state and national highway authorities to set up EV charging stations along highways and at strategic locations to draw more people towards EVs. The government is also working on partnering with malls, hotels and restaurants in urban areas, especially Tier-2 and Tier-3 cities, to set up charging stations.
“Things are moving at a slow pace. It is taking time as coordination with multiple stakeholders is needed. Awareness and demand from citizens also needs to increase. With every change in the government, priorities change. A plan has been drawn to set up EV charging stations at toll booths, along highways, at fuel stations, hotels and restaurants,” said an official from the Bangalore Electricity Supply Company Limited (Bescom), working on EVs in the state.
According to the information available on the Vahaan portal of the Road Transport Ministry, as on March 20, there are 3,51,264 EVs in the state, of which 2,83,127 are e-scooters and e-bikes, and 21,245 cabs. “If the data is closely analysed, one sees a stark difference between the number of two-wheelers and four-wheelers. Though the market is growing, it is still slow for cars because of the cost factor. Also, the revision in the cost of registration and road tax is acting as a deterrent,” the official said.
A senior transport department official said the Centre is extending subsidies for EV manufacturers under the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME). This has helped lower the entry point for e-vehicles. The government has also created a special window of four months for EV vehicles, starting from April 1, with an aim to increase the demand and ease purchasing. Further, the state government is giving incentives to manufacturers, R&D firms and administration.
The state government announced an EV Policy in 2017 and it lapsed in 2022. The commerce and industries department has been working with all the stakeholders, including the urban development department, private players and transport department to chalk out the new policy. “It is called the Clean Mobility Policy, which is now before the finance department. After clearance, it will go to the cabinet. In the policy, along with lithium-ion batteries, the use of hydrogen too is being stressed upon.
The policy covers the entire supply chain -- manufacturers, power suppliers, R&D firms, testing centres and battery disposal companies. With this, the economics of the vehicles has also been worked upon. Batteries make up around 60-70% of the cost of vehicles, making them expensive. Then there is the availability of charging stations, which is also working as a major deterrent for people in purchasing or switching over to EVs,” an official from the commerce and industries department explained. The new EV policy aims to attract Rs 50,000 crore investment and create over a lakh job opportunities in the sector, he added.
The old EV policy extended considerable exemptions in registration and taxation. In the first week of March 2024, the state government amended the taxation act and passed a bill for all EVs, cars in particular. As per the new rule, a vehicle costing above Rs 25 lakh will be levied a tax of 10% of the cost of the vehicle plus 11% cess on tax of the vehicle. “It is the buyers’ liability. It is a state government’s decision and it should be questioned. We are just implementing it. This is one of the reasons why the sale of EV cars has seen a marginal dip. Citizens are yet to understand that despite these hikes, the overall cost incurred for transport will still be lesser than conventional fuel vehicles,” said an official from the transport department.
The government is aware that the cost of the battery and, in turn, EV is a major deterrent. But people should understand that lithium-ion batteries are not made in India and all of them are imported. The cost is high as the extraction of lithium is a costly affair. The government is also exploring green hydrogen as an alternative. The battery market is dominated by China, Taiwan, Korea, Russia, Argentina, Bulgaria, Bolivia and others, the official from the energy department explained.
It is not just expanding the EV market that is a challenge for the government, but also the disposal of batteries in future. An official from the Karnataka State Pollution Control Board (KSPCB) said lithium-ion batteries are not new in India as they are used in mobile phones. But large ones used in cars are new. Two battery recycling plants have already been set up at Chikkaballapur and Doddaballapur. Third one is coming up in Harohalli. A private firm is also setting up an R&D centre at Jigani.
“The life of a lithium-ion battery is eight to ten years. No batteries have come for disposal as of now. The manufacturers and dealers of EV batteries will have to follow the same protocol used for disposal of lead acid batteries. It is also prescribed by the central pollution control board and the ministry of environment, forests and climate change. It is easier to dismantle an electric car or a two-wheeler as compared to conventional vehicles, so scrapping them will be easier,” the KSPCB official said.
Anupam Kumar, founder and CEO, MiniMines, who has been working on lithium-ion, explained, “We have been producing around 15,000 metric tonnes of lithium-ion mobile battery waste since 2010. Earlier, China collected all the used batteries, removed the ore, recycled, turned them into new batteries and sold them back in India. In 2014, the government banned the export, realising that it is a big resource for the country.
Since then, many firms have been working to solve the problem of extraction and use of lithium, cobalt, nickel and other materials in these used batteries. The used batteries are sent to multiple industries. Setting up a lithium-ion battery manufacturing unit is a big challenge as it requires highly specific technologies. Many firms are working on it and it will take another two years. Until then, the disposal and management of minerals extracted is being strengthened to reduce the carbon footprint. Though there is competition, it is working in the positive direction.”
Chethan Maini, co-founder and Chairman of Sun Mobility, said the current market observations suggest a strong growth in two and three-wheeler sectors, indicating that the promising trends will likely to persist in the future. The next areas of growth are likely to be in the bus and car markets. Industry hints at the possibility of early signs of adoption in the trucking sector emerging in the next approximately 24 months, potentially signalling a shift in market dynamics.
Explaining battery management, Maini said many companies are working on it. At Sun Mobility, once the battery’s capacity declines to about 80%, the company can repurpose it (give it a second life) without physical intervention, utilising online reprogramming. These repurposed batteries find secondary applications such as powering UPS systems or cell towers. Post its second-life usage, the batteries are designed for easy recycling.
Maini added that in India, where natural resources like lithium, nickel and cobalt are scarce, recycling becomes imperative for sourcing these critical materials for battery production. Though the urgency may not be immediately apparent, by 2030, recycling is poised to emerge as a substantial industry. Prioritising recycling efforts is crucial, requiring support from both industry and policymakers to establish a robust recycling and battery manufacturing infrastructure in India.
There is also another challenge before the state government -- ensuring sufficient and increased power supply for EVs. According to energy department records, the monthly power consumption of 3,51,998 EVs is 61.25 Million Units (MU) and the annual consumption is 735.95 MU. By 2030, the department calculates that the number of EVs will increase to 16,54,237 creating a load of 1763.10 MW on the grid. Then the monthly consumption of power will be 282.74 MU and the annual power consumption for EVs alone will be 3392.86 MU. As per department officials, “From 2025, a 5% growth in two and four-wheeler EVs and 1% in heavy EV is expected annually.”