Exploring Cost-Reduction Strategies For Electric Vehicle (EV) Batteries

Sector:Electric Mobility Undertaken By: Indian Council for Research on International Economic Relations Recent Publication:2020

Electric Vehicles (EVs) are viewed as a solution to several problems in India. Electric vehicles can contribute to reducing greenhouse gas emissions, sustainable economic growth, improving air quality, and reducing fossil fuel imports. However, the transition from a fossil fuel-based transport system to an electric mobility system faces a variety of challenges. One of the major barriers is the distinct cost disadvantage of EVs vis-à-vis traditional internal combustion engine vehicles. The battery in an EV is its most expensive component, accounting for 50 per cent of its total cost; thus, the affordability of EVs is directly proportional to the affordability of a battery. This objective of this initiative is to identify strategies that could reduce battery costs and make EVs affordable and improve their uptake in the transport and mobility system in India.