The electric vehicle market is exploding but India is far from equipped for it

The global market for EVs is expected to grow from two percent currently to over 30 percent in 2030.

Almost a quarter of way into the 21st century, we're witnessing a pivotal moment in the automobile industry, with electric vehicle technology moving from an uncertainty to a definite reality. Some experts see the global market for EVs exploding, from the two percent currently, to over 30 percent by 2030. Notably, India sees a similar forecast but we're far from equipped for it. Of course, at the heart of it is the electricity that's needed to keep these vehicles running. But equally dramatic is the race to manufacture EV batteries to store that energy.

CATL (Contemporary Amperex Technology), based in China, is one of the leading battery producers, having made 40 GWh of lithium-ion battery cells last year, far more than the global production of 29GWh across battery manufacturers in 2016! CATL supplies battery packs to manufacturers like BMW, Volkswagen and Nissan in China, apart from SAIC, the parent company to MG Motors India, who will also use CATL-sourced cells in the 44.5kWh battery pack of upcoming MG ZS electric vehicle. CATL has three factories in China currently and is contemplating more factories in Europe to expand supply to European automobile manufacturers.

 The electric vehicle market is exploding but India is far from equipped for it

Representational Image.

LG Chem, who supplies batteries to companies like General Motors and Volkswagen, stands at around 50GWh of battery production, and is currently the most valuable company in the South Korean LG conglomerate. The company has increased its 2020 production target from 70GWh to 90GWh, indicative of how quick the industry is moving. China's BYD is the number three battery manufacturer, mainly supplying to its own line of EVs and electric buses, with a production of around 20GWh.

(Also read: Still charging: India's EV market is far from thriving despite policies encouraging e-mobility)

Of course, no conversation about battery megafactories is complete without mention of Tesla's Gigafactory producing 20GWh of batteries, setup between Tesla and Panasonic. A third Gigafactory is planned in China, to help Tesla cope with demand for the upcoming China-made Model 3.

Currently, the top five battery producing factories are in Asia, and account for over 75 percent of battery production. In India, only recently have plans been set in motion to set up battery manufacturing plants in the country. Three are planned, by different manufacturers, in Telangana itself with a combined capacity of 10 GWh, while one in Kerala has just been announced. As per NITI Aayog, 60 GWh is what India will require by 2025.

(Also read: To go big on EVs, Japanese carmakers think super small)

On the production side of things, there's still a long way to go to transition from fossil-fuel generated electricity to renewable sources. Coal accounts for nearly 40 percent of the electricity generated globally, with natural gas trailing at around 23 percent. There's been a drop in nuclear energy produced, while production from renewable sources has gone up to about 9 percent worldwide. India boasts one of the highest shares of renewable energy production, at over 15 percent, from the likes of biomass, hydropower, solar, wind and geothermal sources. We hope to see this split increase since over 65 percent of our electricity production comes from coal.

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