Electric vehicle revolution: Expert suggests 5 reasons why India needs to build local EV battery refining capabilities

India is at the cusp of a monumental shift in its transportation landscape, with the Ministry of Road Transport and Highways setting ambitious targets under EV30@2030. However, Shubham Vishvakarma, Founder and Chief of Process Engineering at Metastable Materials, says that as the nation strives to electrify its transport sector, a critical aspect demands attention — the need for local Electric Vehicle (EV) battery refining capabilities.

Talking about factors why the nation needs to build local EV battery refining capacitie, the founder and Chief of Process Engineering at Metastable Materials, highlights these 5 reasons — 
 
Surge in EV Sales and Import Dependency:
While India has witnessed a surge in electric two-wheeler sales with a 34.42 per cent increase in sales in the third quarter of FY 2023-24 (Q3 FY 24) compared to the previous quarter (Q2 FY 24), Vishvakarma says that the growing demand amplifies the nation's dependence on imported raw materials, particularly from a few countries (Korea, China and Japan) dominating the global supply chain. "The top 6 cell manufacturers from these countries account for ~82 per cent of Lithium-Ion production capacity in the world. As of 2022, electric cars constituted a mere 1.3 per cent of total car sales, emphasizing the need for a substantial push in the EV sector," he informs.

Retaining Critical Minerals Within Borders:
To enhance material security, he believes that the focus should be on preventing critical minerals from leaving the country. He opines, "While developing lithium mines may take several years, recyclers play a crucial role in recovering minerals from spent batteries. However, the current scenario results in exporting these materials for refining, missing out on creating substantial value for the nation."

Economic and Employment Benefits:
The founder and Chief of Process Engineering at Metastable Materials states that establishing local mining and refining facilities not only contributes to material security but also holds immense potential for job creation and monetary value. He adds, "According to a McKinsey study, refining around 500 kilotons of Lithium Carbonate Equivalent (LCE) from spodumene could lead to substantial benefits in revenues, margins, and employment."

Environmental Sustainability and Technological Innovation:
He firmly believes that local battery refining aligns with India's environmental goals by promoting sustainable practices throughout the supply chain. "It allows greater control over environmental standards, waste management, and recycling processes, thereby minimizing the carbon footprint associated with battery production and disposal. Additionally, fostering indigenous refining capabilities encourages innovation and technological advancement, driving breakthroughs in battery chemistry, performance, and efficiency," he avers.

Long-Term Benefits and Strategic Positioning:
While the initial investments in local battery refining infrastructure may be substantial, the long-term benefits far outweigh the costs. Vishvakarma  informs that domestic battery production mitigates currency fluctuations and trade tariffs, resulting in more stable and competitive EV prices in the Indian market. He adds, "Furthermore, building local refining capabilities enhances India's strategic positioning in the global EV landscape. The nation can assert its influence as a key player in the transition towards sustainable transportation, fostering partnerships and collaborations with international stakeholders."

As India envisions a future dominated by electric vehicles, building local EV battery refining capabilities emerges as a critical imperative. "Beyond addressing material security and import dependency, it promises economic growth, employment opportunities, environmental sustainability, and strategic influence on the global stage. The nation's journey towards a sustainable and electric future hinges on its ability to foster a robust and self-reliant ecosystem for EV battery production," he sums up saying.