• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » India’s Electric Car Ambitions Could Stumble on Lack of Lithium

India’s Electric Car Ambitions Could Stumble on Lack of Lithium

India’s Electric Car Ambitions Could Stumble on Lack of Lithium
January 22, 2020
Bloomberg

India’s ambition of becoming a global hub for making electric vehicles faces one major hurdle: its lack of access to lithium.

Home to some of the most polluted cities on the planet, the South Asian nation is pivoting toward new-energy vehicles to clean up its toxic air. But with meager resources of lithium, the mineral essential to make batteries for electric vehicles, it is having to scour for resources overseas.

India’s EV production will rely on imports from China of lithium chemicals used to make cathodes and battery cells, according to Jasmeet Singh Kalsi, director at Manikaran Power Ltd., which is exploring setting up India’s first lithium refinery. “China has a thriving lithium chemical, battery cathode, battery cell and EV supply chain. India has none.”

Prime Minister Narendra Modi’s administration unveiled a slew of measures in 2019 to promote the clean-energy vehicles, including a $1.4 billion plan to make India a manufacturing hub for EVs and cutting taxes to spur purchases. While electric cars in India remain a small segment, with an estimated 3,000 sold in 2018 compared with the 3.4 million fossil fuel-powered cars in the same year, the nation is forecast become the fourth-largest market for EVs by 2040, when the segment will comprise nearly a third of all vehicles sales, according to BloombergNEF.

Import Reliance

Several plans are under way to build lithium-ion battery factories in India. Meanwhile, China -- the largest electric vehicle market in the world -- is dominant in the battery supply chain. Around three-quarters of battery cell manufacturing capacity is in China, and Chinese companies have unparalleled control of required domestic and foreign battery raw materials and processing facilities, according to BNEF.

“Indian companies have been involved in trying to prospect for stakes in overseas resources, and possibly on-shoring more raw materials production capacity in India,” said Sophie Lu, head of metals and mining for BloombergNEF. “But there are very little synergies right now because further up the value chain, battery components manufacturing capacity does not seem to be planned extensively for India.”

A joint venture called Khanij Bidesh India Ltd. has been formed between three state-run companies -- National Aluminium Co., Hindustan Copper Ltd. and Mineral Exploration Corp. -- to acquire lithium and cobalt mines overseas. Amara Raja Batteries Ltd., the country’s second-biggest traditional battery maker by value, will build a lithium-ion assembly plant, while Suzuki Motor Corp. along with Toshiba Corp. and Denso Corp. is setting up a lithium-ion battery manufacturing plant.

Manikaran signed an agreement with Australia’s Neometals in June to jointly fund the evaluation of developing a lithium refinery in India with a capacity of 10,000 tons to 15,000 tons of the finished product. That capacity falls short of India’s projected requirement of 200,000 tons of lithium hydroxide by 2030, Kalsi said.

Electric vehicles are “slowly going to take off, not with the speed the government perceives it to be, but going ahead the market is going to get pretty huge,” he said.

RELATED CONTENT

RELATED VIDEOS

Technology Sourcing/Procurement/SRM Automotive High-Tech/Electronics Asia Pacific
KEYWORDS Asia Pacific Automotive High-Tech/Electronics Sourcing/Procurement/SRM
  • Related Articles

    The Lithium Mine Buildup Is Outpacing the Electric-Car Boom

    New Way to Recycle Lithium-Ion Batteries Could Be a Lifeline for Electric Cars and the Environment

    SaaS Is Moving into Sourcing Space, But Lack of Uniform Adoption Could Be a Problem

Bloomberg

As Retail Sales Improved, Inventories Rose Less in February Than Expected

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Biden Urges Businesses to Vaccinate Workers; J&J Plant to Stay on Hold After Inspection

    Coronavirus
  • Gig Worker

    The Gig Economy Is Booming, Despite Debates Over Workers’ Rights

    Logistics
  • Supply-Chain Issues

    Fed Sees Supply-Chain Issues Growing Despite Better U.S. Outlook

    Coronavirus
  • A Stress Test for Supply Chains, Part 2

    Watch: A Stress Test for Supply Chains, Part 2

    Coronavirus
  • Canadian National Railway

    Century-Old Rail Rivalry Flares Up Over a $30 Billion Prize

    Logistics

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

Yang Ming 6 River Systems ArcBest
Armada aThingz BluJay
Burris Logistics DSC Logistics DCSA (Digital Container Shipping Association)
DHL Resilience360 Flash Global Genpact
Geodis GEP GreyOrange
Honeywell Corporate Honeywell Intelligrated Infor
Inmar Kibo Commerce Kinaxis
Logility Magnitude Software MPO
Old Dominion Oliver Wight OpenSky
Paccurate Ports America Purolator
QAD Precision Red Classic Riskmethods
S&H Systems Snapfulfil TGW Systems
Tradepoint Atlantic Transportation Insights Watson Land Company
Westfalia Technologies Workjam
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing