According to Indian Express, the government rejected a $1 billion investment proposal from the Chinese manufacturer of electric vehicles BYD and its Hyderabad-based partner Megha Engineering and Infrastructures Ltd (MEIL) to build a factory for producing electric vehicles. The proposal was being examined because, in accordance with FDI regulations, any proposal containing investments from nations that have a land border with India is required to obtain government approval. China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan are among these nations. Reuters had previously reported that the investment proposal also outlined plans to construct training and R&D facilities as well as charging stations in India.
NITI Aayog proposes new incentives to boost Li-ion battery production
The central government’s policy think-tank, NITI Aayog, has proposed bolstering existing production linked incentives for battery manufacturing with royalty and tax benefits for businesses processing and refining minerals vital to the production of li-ion batteries.
“Policy should focus on scaling up lithium-ion battery (LIB) recycling infrastructure with production linked incentives to complement mining and extraction efforts of critical minerals…This will aid in promoting environmentally sustainable waste management practices, reuse and disposal,” NITI Aayog said in its report on ‘Mine to market: critical minerals supply chain for domestic value addition in lithium-ion battery manufacturing.’
Mandatory tests linked to incentives for EVs on the chopping block?
The central government is planning to scrap mandatory testing requirements for PLIs linked to EV manufacturing, reported Business Standard. The decision comes following a re-examination of the policy by a committee headed by the Automotive Research Association of India (ARAI).
“According to the ARAI’s analysis, the battery safety tests announced by the ministry are not needed as the industry is complying with the Ministry of Road Transport and Highways’ (MoRTH’s) recently notified norms,” said government officials quoted by the paper.
Financing for electric mobility a big challenge in India: Report
A new report by the Confederation of Indian Industry (CII) said financing remains a challenge for electric mobility in India and added that it is critical to present options that can help adjust the cost and bring EVs on par with the cost of internal combustion engine models. The report said that in order to fully realise the advantages of mobility-as-a-service (Maas), it is necessary to have clarification on issues like bike taxis and the classification of bicycles as commercial vehicles. The report recommended that the advantages of bike taxis should also be emphasised in terms of traffic relief, user affordability, and expanding consumer options. To give consumers the essential push towards adopting shared mobility, marketing strategies for Maas should enable smooth integration and provide a variety of choices, the report noted. Additionally, it urged for the implementation of a scrappage strategy that capitalises on the requirement to get rid of end-of-life vehicles (ELVs).
Smaller EVs could reduce critical minerals use by almost 50%: Study
According to a recent analysis, EVs with smaller batteries could drastically reduce Europe’s EV sector reliance on essential minerals. By producing smaller electric vehicles that are driven by smaller batteries, Europe can reduce its consumption of critical metals by up to 49% by 2050, according to an analysis by Transport and Environment, a European coalition of charities working on sustainable transportation. Switching to smaller batteries can be done by either downsizing the cars themselves or implementing batteries with shorter ranges while keeping the car size same. Vehicle downsizing is the most effective way to conserve important resources when other materials like steel and aluminium are taken into account. This strategy maximises resource usage and provides social advantages in terms of consumer affordability, the analysis said.
The researchers forecasted the demand for battery raw materials, particularly lithium, nickel, cobalt, and manganese, by 2050 by analysing three scenarios: business as usual, accelerated, and aggressive. In all three scenarios, it is predicted that the demand for raw resources will increase, with annual volumes in 2050 expected to be four to ten times higher than in 2023.