BATTERY ELECTRIC VEHICLES – ENVIRONMENT

News: The problem with battery electric vehicles

 

What's in the news?

       Battery electric vehicles are at the heart of the government’s push for net zero.

       However, what has worked for Norway and China may not be as successful in India’s peculiar conditions.

       While there is little debate that electrification is the future, the roadmap remains unclear.

 

Need of BEVs in India:

       In India, the two major objectives seem to be to cut emissions and reduce costly fuel imports.

 

Issues in Battery Electric Vehicles push:

1. Upfront Subsidy:

       The BEV experience across markets from Norway to the US and China shows the electric push works only if it is backed by state subsidies.

       The government waives the high taxes it imposes on sales of non-electrics, it lets electric cars run in bus lanes, toll roads are free for them, and parking lots offer a free charge.

       The problem with this overt subsidization of EVs, especially in the context of developing nations like India, is that much of the subsidy, especially the one offered as tax breaks for cars, ends up in the hands of the middle or upper middle classes, who are typically the buyers of battery electric four-wheelers.

2. Charging Network:

       A World Bank analysis found that investing in charging infrastructure is 4-7 times more effective in EV adoption than providing upfront purchase subsidies.

       China, the leader in the number of publicly available chargers, accounts for 85% of global fast chargers and 55% slow chargers.

       In India, the number of EVs had crossed 1 million by mid-2022, and will likely grow to 45-50 million by 2030.

       However, only about 2,000 public charging stations are currently operational across the country.

3. Electricity Source:

       In several countries that have pushed EVs, much of the electricity is generated from renewables - Norway has 99% hydroelectric power.

       In India, the grid is still fed largely by coal-fired thermal plants.

4. Value Chain:

       As India struggles to make inroads into the global lithium value chain, there is discussion on the need to diversify the country’s dependency on Li-ion batteries in the EV mix.

       The demand for Li-ion batteries from India is projected to grow at a CAGR of more than 30% by volume up to 2030, which translates to more than 50,000 tonnes of lithium requirement for the country to manufacture EV batteries alone.

 

New Technologies:

1. Hybrids:

       The hybrid technology is seen as a good intermediate step towards achieving the all-electric goal.

       Hybrids typically have improved fuel efficiency through electrification of the powertrain, but do not require the charging infrastructure base that is an essential for BEVs.

       Additionally, manufacturers claim that a hybrid vehicle base also spawns the manufacture of the battery ecosystem, which can then be leveraged for a BEV push.

       However, hybrids too have the issue of Li-ion batteries being the main source, even though the self-charging mode obviates the need for charging points.

2. Ethanol and Flexi-fuel:

       A flex fuel, or flexible fuel, vehicle has an internal combustion engine, but unlike a regular petrol or diesel vehicle, it can run on more than one type of fuel, or even a mixture of fuels such as petrol and ethanol.

       A nationwide pilot that is currently underway aims to replicate the commercial deployment of this technology in other markets such as Brazil, Canada, and the US.

3. FCEVs & Hydrogen Ice:

       Hydrogen fuel cell electric vehicles (FCEVs) are practically zero emission, but a major hurdle to their adoption has been the lack of fueling station infrastructure — even though fuel cell cars refuel in a way that is similar to conventional cars, they cannot use the same station.

       Safety is also a concern. Hydrogen is pressurized and stored in a cryogenic tank, from there it is fed to a lower-pressure cell and put through an electro-chemical reaction to generate electricity.

4. Synthetic Fuels:

       German manufacturer Porsche is developing a synthetic fuel that it says can make an internal combustion engine as clean as an EV.

       Porsche’s e-Fuels are made from carbon dioxide and hydrogen, and are produced using renewable energy. The fuel production is being tested in Chile.

The idea is to make this usable in all petrol-engine cars, rendering their use virtually CO2-neutral, and thereby give ICE cars a fresh lease of life.