Listen to this article:

The ongoing West Asian supply chain disruptions have exposed a major vulnerability – over 96% of India’s 350 million vehicles run on imported petrol or diesel. India currently imports nearly 89% of its crude oil requirements, and the dependence on oil imports is unlikely to decline significantly even in the long term. 

This has renewed calls to cut fuel use and accelerate electric vehicle (EV) adoption, further reinforced by the prime minister’s recent calls for austerity. However, India also imports over 90% of its lithium-ion cells, along with lithium and cobalt, for manufacturing EV batteries. 

Does this mean India risks trading its dependence on imported oil for a new reliance on imported battery cells and minerals? Yes, but it is a risk worth taking. 

Why is this trade-off more strategic?

The answer lies in the difference between the dependencies: Conventional vehicles are built in India but run on imported fuel, whereas EVs rely on imported components but run on domestically generated electricity. Oil dependence is continuous; battery dependence is largely upfront and can decline over time. Neither is a perfect solution, but EVs offer a strategic form of dependence. 

Why EV dependence is different

The battery cost is........

© The Wire