Even as the global electric vehicle (EV) market is on the cusp of an exponential growth in the wake of big push by governments across the canvass, the car-makers may encounter bumpy roads ahead, according a report.
The EV thrust must be read in the context of efforts by governments and city authorities to replace internal combustion engine vehicles (ICEVs) with cleaner alternatives.
“As car-makers gear up to electrify their fleets, they face challenges to secure supplies of raw materials used for battery production and to prove the environmental benefits of a life-cycle perspective,” according to a report produced by independent research organization A.T. Kearney Energy Transition Institute.
“Electric car batteries rely on a host of rare materials – from lithium and nickel to cobalt. Battery makers around the world are struggling to secure supplies of these key ingredients as demand outstrips supply. This, undoubtedly, places pressure on car-makers. So, the hunt for alternative technologies is on,” said Romain Debarre, Managing Director, A.T. Kearney Energy Transition Institute, in a release.
“It is critical that India takes into account the practical aspects related to the EV roll-out, as it defines its long-term strategy for the sector. The problem is further complicated by the fact that we have limited availability of the natural resources required for LIB (lithium-in battery) battery manufacturing,” said Abhishek Poddar, Partner, Energy & Process Industries, A.T Kearney India . Not surprisingly, in the latest automotive policy, the Centre had focused on overall pollution reduction through multiple technologies and regulations by implementing stiff targets, and by not demanding 100% switch to EV by 2030. Read More