Utkarsh Singh, Co-Founder & CEO, BATX Energies
The world is consciously moving towards environmental sustainability, and most companies are shifting their approach towards a clean and green environment. The transportation industry is transforming with a similar approach, especially a significant move towards Electric Vehicles. It will further give rise to net-zero emissions and renewable energies.
The recent report by Reanin Research & Consulting states that globally, the electric vehicle market was valued at USD 163.01 billion in 2020 and will be growing to $823.75 billion by 2030, registering a CAGR of 18.2% from 2021 to 2030. The market globally has been witnessing huge demand and a leap since the past decades. However, India lags in EV penetration compared to other big markets. Hence, there is a need to increase EVs, expand charging facilities, develop a self-reliant ecosystem, develop battery manufacturing facilities, and provide financial incentives like PLI schemes. The Indian government has significantly boosted the EV sector by launching and simultaneously enhancing the ecosystem in recent years.
According to the EV India Energy Storage Alliance (IESA) projects, the Indian EV market will grow at a CAGR of 36 per cent by 2026. In addition to the various initiatives by the government, they also intend to use EVs for ministries and field offices. Considering all the factors like performance improvements, renewable electricity tariffs, and lower maintenance, among others, will be the primary reasons for the ‘shift from conventional to electric cars. These giant steps and fierce market competition to lower the upfront cost are significant market flavours.
As demand for electric vehicles is propelling in India, the move towards extensive use of the lithium-ion battery is proportionately increasing. As a result, the lithium-ion battery market will grow from USD 41.1 billion in 2021 to USD 116.6 billion by 2030. However, due to scarcity of materials, recent data shared by Emerging Tech forecasts a lithium deficit between 455,000 and 1.7 million metric tons each year by 2030. Therefore, industry players extract rare earth materials and recycle lithium-ion batteries. Henceforth, recycling will cover the demand and supply gap of lithium-ion batteries.
Today, lithium-ion battery usage is everywhere, from electronic gadgets to complex aerospace, military, and defence industries. Due to its high use, the demand has simultaneously increased.
Furthermore, with several local and international companies entering the industry, there is a decline in manufacturing costs. The underlying principle is that lithium-ion batteries are becoming more affordable, and the demand-supply chain has grown significantly. Hence, there will be more need to extract the critical materials and recycle lithium-Ion batteries while adding them back to the EV supply change, making it a circular and sustainable ecosystem.
The extraction of metals like cobalt, nickel, lithium and manganese, and CSPG graphite via zero waste and zero-emission technology will reduce carbon emissions and contribute extensively to the circular economy. Currently, India is on the path to move towards circularity and sustainability, as the government has set its target to become net zero by 2070. Clean and green energy is the biggest game-changer in the industry. According to the recent report by the Council on Energy, Environment and Water (CEEW), India could save on crude oil imports worth over Rs 1,07,566 crore ($14.1 billion) a year if the share of electric vehicles (EVs) reaches 30 per cent of new vehicle sales by 2030.
Innovation, technology and consumer behaviour will point to a massive shift towards sustainability in the next five years, with lithium-ion battery-powered EVs dominating the market. Therefore recycling lithium-ion batteries will become imperative to help businesses shift toward a circular economy.
