Electric Vehicles (EVs) have emerged as a key solution to reduce carbon emissions and mitigate climate change. The global demand for Lithium and Cobalt, two essential components of the batteries that power EVs, has been on the rise in recent years. With the increase in the production and adoption of EVs, the demand for these materials is expected to continue to grow. This article explores the global demand for lithium and cobalt for electric vehicles and the future business scope in India.
Global Demand for Lithium and Cobalt for Electric Vehicles
The global demand for Lithium and Cobalt has been driven by the growth in the production and adoption of electric vehicles. Lithium-ion batteries are the most widely used batteries in EVs, and lithium is one of the key components of these batteries. According to the International Energy Agency (IEA), the global demand for lithium for EVs is expected to increase by 40 times between 2020 and 2040. The demand for cobalt is also expected to grow, although at a slower pace, due to concerns about the ethical sourcing of the mineral.
China is currently the world’s largest producer and consumer of Lithium, accounting for more than 60% of the global production. Australia, Chile, and Argentina are the other major producers of Lithium. The Democratic Republic of Congo (DRC) is the largest producer of cobalt, accounting for more than 60% of the global production.
Future Business Scope in India
India has been making significant efforts to promote the adoption of electric vehicles and reduce its dependence on fossil fuels. The Indian government has set an ambitious target of having 30% of all vehicles on the road to be electric by 2030. This presents a huge business opportunity for companies involved in the production and supply of lithium and cobalt.
India currently imports most of its Lithium and Cobalt requirements from countries like China, Australia, and the DRC. However, there is growing interest in exploring domestic sources of these materials. The Indian government has identified the states of Karnataka and Rajasthan as potential sources of Lithium. Cobalt deposits have also been identified in the states of Jharkhand and Chhattisgarh.
Several Indian companies have already entered the Lithium-Ion Battery manufacturing space. These include Tata Chemicals, Exide Industries, and Amara Raja Batteries. However, the industry is still in its nascent stage, and there is a need for more investment and innovation to scale up the production and bring down the costs.
The Indian government has also announced several incentives and policy measures to encourage the growth of the EV industry. These include tax exemptions, subsidies, and setting up of charging infrastructure. These measures are expected to boost the demand for electric vehicles and, in turn, the demand for Lithium and Cobalt.
The global demand for Lithium and Cobalt for Electric Vehicles is expected to continue to grow in the coming years. India, with its ambitious targets for the adoption of electric vehicles, presents a huge business opportunity for companies involved in the production and supply of these materials. While the industry is still in its early stages, the government’s incentives and policy measures are expected to boost the growth of the EV industry and create a favorable environment for the development of the lithium and cobalt supply chain in India.