Here’s How India Could Soon See EVs That Are A LOT Safer

  • Apr 13, 2023
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Hint: It’s got something to do with the tons of Lithium deposits that were found in J&K earlier this year

Earlier this year, 5.9 million tons of Lithium-Ion were found in Reasi, Jammu & Kashmir. And now, the Geological Survey of India (GSI) has revealed that similar materials are being searched for in states like Rajasthan, Chhattisgarh, Jharkhand, Arunachal Pradesh, Nagaland, Meghalaya, Ladakh and Gujarat. 

What this essentially means for us is the chance for India to be able to make the battery cells and a lot more locally. Given that India largely depends on imports of Lithium cells, this discovery could reduce manufacturing costs and we could hence see many manufacturers price their EVs a lot more aggressively. Heck, if managed well, India could even turn into an exporter of Lithium. 

At the forefront of this is Neogen Chemicals, a Lithium-based chemicals’ manufacturer. The company had recently signed a deal with MU Iconic Solutions Corporation (Mitsubishi Chemical Corporation, one of the largest chemical companies’ subsidiaries), hoping to get permission to manufacture electrolytes in India. If it goes their way, it’ll be allowed to manufacture up to 30,000 metric tons of electrolytes each year, in a phase-wise manner in India. Given how extremely important they are in batteries, this deal could bring sweeping changes in what’s happening in the current EV scene in India. It will also help local EV players to not be overly dependent on the FAME 2 subsidy, especially considering it will likely be phased out from April 2024. 

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The electric mobility segment is currently a bit polarising one in India. While there are a lot of people making the switch, most of them are still unsure, given the hazardous incidents that come up every now and then. Most of the fire incidents happen because the imported cells are unable to handle our rather dynamic weather. Locally manufactured cells, on the other hand, will be India-specific and thereby have the potential to ensure better safety. This development is complemented by Ola Electric’s plans of manufacturing cells on a large scale in India, which, in fact, is touted to reduce the price by up to 25 percent.


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