The Global Trade Research Initiative (GTRI) has stated that the production linked incentive (PLI) scheme should concentrate on making electric vehicle (EV) cells or lithium-ion cells and not batteries as most of the production and utility inclusion takes place up to the cell-making stage.
According to the study, GTRI recommended that the government let the domestic EV market expand spontaneously without depending on subsidies as this would prevent China from using India as a ‘EV colony’, since India has particular difficulties that other nations do not have when it comes to mass EV adoption.
These difficulties include an 80% reliance on coal for electricity, regular blackouts, and a need for imported batteries and vital minerals for the manufacture of electric vehicles.
“Since India lacks the knowledge necessary to produce batteries from raw materials, the majority of companies import ready-made cells and form batteries by placing them in a box which is an external assembly work. PLI ought not to assist with such unfeasible operations,” Ajay Srivastava, GTRI founder told.
He continued by saying that there has been no economically feasible outcome from the current plan for producing advanced chemical cell batteries.
Due to the US, EU, and Canada imposing hefty tariffs and limits on imports of EVs and parts from China, the global EV market is undergoing a dramatic transition. According to the research, these areas contribute almost 50% of China’s global exports of EVs.
The think tank also recommended that the government should fund infrastructure for battery recycling and encourage the use of clean energy sources to power EV charging stations.
Additionally, it recommended stricter environmental laws for the production and disposal of EVs in order to lessen the carbon footprint and other harmful effects of EV manufacturing.
Additionally, the carbon intensity of the power used to charge EVs will decrease if we accelerate the transition to a cleaner energy mix by utilizing more renewable energy sources, including solar and wind.
In order to reduce carbon emissions and environmental harm, it also suggested giving long-term sustainability top priority by evaluating the environmental impact of EVs over their whole lifecycle, from production to disposal.
This occurs one month after domestic value addition (DVA) certification for Ola Electric’s S1 X escooter model—which is available in 3 and 4 kWh—was obtained. This certification was required in order for the scooter to be eligible for the Production Linked Incentive (PLI) scheme for automobiles and auto components.
Ola is the first electric two-wheeler (e2W) company in India to be qualified for the PLI program offered by the government.
