India Dependency on China Manufacturing of electric vehicles (EVs) in India will increase its dependence on China for raw materials, mineral processing, and battery production, according to a report of by economic think tank GTRI.
The Global Trade Research Initiative (GTRI) also said that there is a need for life cycle impact evaluation for the EV sector. EVs result in the release of pollutants during battery making, disposal, and charging, and about 70 percent of materials used to manufacture EVs in India Dependency on China are imported from China and a few other countries, it said .
“EVs will increase India dependence on China for raw materials, mineral processing, and battery production,” it said India Dependency on China.
China has bought the largest lithium mines in Australia and South America. It processes more than 60 percent of the lithium produced globally. It also processes 65 percent of cobalt and 93 percent of manganese.
India Dependency on China makes three out of four batteries produced globally, it said, adding over 100 Chinese battery units make 60 percent of the cathodes and 80 percent of the anodes used in lithium-ion cells.
The report pointed out that EVs have implications on jobs and pollution and it identified 13 issues related to interests of consumers, industry, and the government for an evaluation.
The issues include high prices of these vehicles, fitness of EVs for a long journey, performance under extreme weather, increase in power demand, less fit for public transport, increased dependence on China, no reduction in pollution, disruption of the auto component sector, and inadequate availability of lithium.
“EVs with lithium-ion batteries are at best a work-in-progress innovation. We must understand the long term impact of EVs on jobs, pollution levels, imports, and economic growth,” GTRI co-founder Ajay Srivastava said.
On the pollution issue, it explained that a typical 500kg lithium car battery uses 12kg of lithium, 15kg of cobalt, 30kg of nickel, 44kg of copper, and 50kg of graphite.
It also uses about 200kg of steel, aluminium, and plastics. Mining extraction, transport, and processing of these materials release pollutants and CO2, leading to air and water pollution, it added.
“The battery’s life is 6-7 years; after which it needs to be recycled. Recycling is complex as the battery contains many toxic materials that are challenging to dispose of. Firms promoting EVs talk about zero tail-pipe emissions but are silent on mining and disposal costs,” the report said.
Further, it said that EVs will only increase pollution as the batteries are charged from coal-generated electricity.
India Dependency on China generates 60 percent of electricity from fossil fuels like coal and petroleum, and of this, coal accounts for 50 percent.
“Electric cars only make sense when most power comes from renewable energy,” it said, adding that EVs will disrupt India’s auto-component industry with 700 organised and 10,000 unorganised manufacturers.
It also said that EVs will end the existence of lakhs of shops and garages selling spare parts, changing oil, and servicing vehicles.
Further, it said that EV is not a global phenomenon and the push for it is coming from Europe, which is introducing the Carbon Border Adjustment mechanism to protect their polluting industry and disrupt global trade.
India’s ambitious electric vehicle (EV) transition is increasingly dependent on China for critical raw materials and battery production. A report by the Global Trade Research Initiative (GTRI) highlights that approximately 70% of the materials used in India’s EV manufacturing are imported, primarily from China and a few other countries. This reliance encompasses essential components such as lithium, cobalt, nickel, and graphite, which are vital for battery production .Business Outreach+2The Economic Times+2Stackumbrella.com+2
Key Findings from the GTRI Report India Dependency on China
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Raw Material Processing: China controls over 60% of global lithium processing and 93% of manganese processing, both crucial for EV batteries.Wikipedia+2The Economic Times+2Stackumbrella.com+2
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Battery Production: Chinese manufacturers produce approximately 75% of the world’s lithium-ion batteries, with over 100 Chinese battery units responsible for 60% of cathodes and 80% of anodes used in these batteries .Wikipedia+4The Economic Times+4Stackumbrella.com+4
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Environmental Concerns: The life cycle of EV batteries, from mining to disposal, involves significant environmental impacts, including CO₂ emissions and pollution. For instance, a typical 500 kg lithium-ion battery requires 12 kg of lithium, 15 kg of cobalt, 30 kg of nickel, 44 kg of copper, and 50 kg of graphite, leading to substantial ecological footprints .The Economic Times
India’s Strategic Response of India Dependency on China
In light of these dependencies, India is actively seeking to diversify its supply chains and reduce reliance on Chinese imports. The government is formulating fiscal incentives to promote domestic production of rare earth magnets, a critical component for EV motors. India possesses significant rare earth reserves but lacks processing capabilities, making it heavily reliant on China, which controls about 90% of global magnet production .The Economic Times+2Reuters+2Reuters+2
Additionally, India is exploring partnerships with countries rich in lithium, cobalt, and nickel to secure a more stable supply of these essential materials. However, challenges such as geopolitical tensions and technological limitations pose hurdles to these efforts .SpringerLink
Conclusion
While India’s EV sector holds significant potential for growth, addressing the challenges posed by dependency on Chinese raw materials and battery production is crucial. Strategic investments in domestic manufacturing, research and development, and international collaborations are essential to establish a resilient and self-sustaining EV supply chain. Without these measures, India’s EV ambitions may face significant obstacles in the coming years.SpringerLink+1Nature+1
