AUTHOR: Harshpreet Singh, student at Indian School of Public Policy, New Delhi, India
Appointment in Samarra the novel by John O’ Hara, starts with an ancient Mesopotamian fable. It mentions a merchant who finds himself stalked by the Death in Baghdad, fearing the inevitable, he sprints to Samarra and what happens next is a well-known tale.
In spite of the similar challenge experienced by Electric Vehicles (EVs), zero emission vehicles were urgently needed due to post-industrialization in first-world countries and rising emission levels. As a result, EVs were created, mass-produced, encouraged, and adopted on a global scale. However, a Gordian knot was quickly encountered. The introduction of EVs would result in a higher demand for electricity in a world where fossil fuels still account for two thirds of global energy production (75% in case of India). More demand leads to more fossil fuel combustion, which produces more emissions.
Before ensuing into this deliberation, there’s a need for a historical perspective on EVs. It all started with a French physicist, Gaston Planté, who invented the lead-acid battery. The lead Acid battery is one of the oldest types of secondary or rechargeable battery. It has lead oxide as its electrodes and sulfuric acid as its electrolyte. Another French scientist, Camille Faure patented the idea of coating the electrodes to prevent eventual corrosion. Resulting in improving the overall range of the battery. The stage was set, Gustave Trouvé, a French inventor used a Siemens engine coupled with a lead-acid battery to ceremoniously invent the world’s the first electric car in 1891. The next decade witnessed a significant increase in research and development of Electric test vehicles by major car manufacturers. Ultimately, General Motors in December 1996, launched the world’s first mass-produced and street-legal electric vehicle, GM EV1.
Another breakthrough took effect with the invention of the lithium-ion battery by Noble award-winning chemist Stanley Whittingham. Lithium-ion batteries are highly advanced and offer more reliability & efficiency. Finally, in 2008, Tesla motors launched Roadster, the world’s first lithium battery-powered, street-legal EV. With Tesla’s profit sky-rocketing, the EV sector rumbled. All major car companies contributed to the EV race and turned the EV sector into a $287.36 billion global market in 2021.
EV Policy in India
Valued at $222billion, India is the fifth largest automobile market in the world. The need for mobility solutions for the rising population, and high greenhouse gas emissions have been major challenges for India. Amid concerns about the high oil import bill, deficit current account, and depleting natural reserves momentum was shifted to Electric Mobility.
National Electric Mobility Mission Plan (NEMMP) was launched in 2013 to provide a roadmap for EV development and adoption in India. This plan intended to enhance fuel security by saving around 9500 million liters of crude oil. This policy envisaged investing ₹14000 Crore to promote R&D. Under this plan, a new scheme Faster Adoption & Manufacture of Hybrid & Electric Vehicles (FAME) was launched in 2015. FAME scheme had the sole function of providing subsidies to the stakeholders. It focused on the increasing sale of EVs by providing incentives up to INR 29,000 for a two-wheeler and INR 1.38 Lac for a four-wheeler EV. FAME scheme was rolled out in two phases; Phase- I (2015-2019) and Phase- II (2019-2022). Initial capital outlay INR 75 crores was provided for FAME-I (2015-16FY) and INR 10000 crores were appropriated for FAME-II.
Another scheme National Program on Advanced Chemistry Cell Battery Storage (NPACC) has been launched by the Ministry of Heavy Industries & Public Enterprises. It approved INR 18100 crore Production-Linked Incentive (PLI) for manufacturers of Advanced batteries.
NITI Aayog recently released the Draft Battery swapping policy. It provides the EV user with an alternative to swap the battery instead of charging it. The policy takes into consideration the cost associated with the development of charging infrastructure. The mining sector reforms bill is due to be introduced in the current monsoon session. It will allow private players to invest in lithium mining. Several states & UTs have exclusively drafted their EV policies.
Overall Indian EV policies have been considerably successful as our EV market size was valued at $328.6 million in 2021.
On the Hook
These global facts and figures however impressive, will not be able to explain increased global warming estimates by IPCC. Hypothetically, neglecting emissions by developed countries, third world countries are still majorly powered by non-renewable resources. EV surge would mean further emissions and resource depletion. India which already imports 30 % of its coal use will suffer a huge setback.
Neither can these numbers, identify the real culprit behind the blatant use of child labor in the Lithium mining industry. Owing to its varied usability, Lithium (White gold) has been the most sought-after metal in recent years. Several reports indicate that; countries with huge lithium reserves like Chile, Argentina, and Congo have been carrying out child labor in mining. According to Amnesty International, these children work for 12 hours daily. They go deep into underground shafts, without any protective equipment. With several risks of occupation hazards, all they are paid is $1-2 daily.
These countries to boost their foreign reserves are committing unbearable damage to the environment. As to extract 1 ton of lithium, 500,000 gallons of water is required. So, such mining regions suffer water scarcity. Contamination of groundwater is another risk, which could lead to disastrous results for animals and mankind alike. India which has no known lithium reserves has to import it all from China, which further widens the trade balance between the countries.
Additionally, there are concerns that continued EV incentives may hurt the public transportation industry because, in countries like Norway, Denmark, and Sweden, people are merely purchasing subsidized EVs as alternatives to conventional vehicles. Not only would this increase traffic, but it will also result in employment losses in the public transportation industry.
The last thing we want to hear is the story of human abuse and environmental destruction behind purchasing an EV. Intellectually, we assume we are doing a good deed by helping the environment. So, I suppose these are the expenses we will have to incur in order to have a greener planet.
*“The views expressed in the article are author’s personal and is not endorsed by the Global Policy Consortium (GPC) or assumed by their members”
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