Chennai, May 22
As the electric vehicle (EV) revolution gathers pace in India, it will be critical for the country to focus on end-of-life (EOL) management of EV materials. That’s because Second Battery Life (SLB) can improve the value proposition of electric vehicles, making them even more attractive by utilizing the full potential of the battery value chain, a report from EY India points out. .
Battery disposal and recycling has so far taken a back seat in the Indian context. There are no detailed procedures by regulators, and responsibility for battery recycling has been left to manufacturers. In the event that a manufacturer is no longer active, then there is no precedent on the methodology that will be followed for the elimination of the vehicle.
With limited supplies of rare earth metals like lithium, cobalt, and nickel, battery recycling can offer a shorter supply pool for new EV battery manufacturers.
Instead of importing these metals from international markets, which can be influenced by world events (such as the Russian-Ukrainian conflict), recycling can help establish a national supply of used batteries, as well as attach a residual value to the battery at the end of its life.
This will offset the total cost of ownership for the consumer, making electric vehicles more affordable in the long run.
Creation of a new asset, revenue stream
“Electric vehicle batteries are expensive, but their value chain — use, reuse, recycle — offers revenue potential. The development of a used battery market presents a major opportunity for industry players to create new assets, access valuable revenue streams, secure raw material supply and boost vehicle utilization. electric,” said Som Kapoor, Partner, Future of Mobility & Autos Retail Leader, EY India.
He added: “This is a critical aspect of the future viability of electric vehicles and will be a major competitive differentiator for those leading the market versus those left behind.”
EV batteries typically operate for up to 3,000 to 5,000 cycles before being deemed ineffective for direct in-vehicle use. These batteries retain 70-80% of their original capacity, with only 5% expected self-discharge rate over 24 hours, making them extremely viable for secondary non-transportation applications such as renewable energy storage , network stabilization, etc. , says the report.
Learn global ideas
In addition to raising awareness, India will need to learn from global best practices.
Development of systematic processes, standards and guidelines to promote the seamless reuse, refurbishment and recycling of batteries, incorporating traceability throughout the value chain to strengthen the battery recovery process and defining roles and responsibilities of battery manufacturers, OEMs, recyclers and government stakeholders for proper end of life management would be helpful.
Thus, the EV policy landscape should focus on developing the end-to-end supply chain for the segment to be streamlined in terms of component availability and location, standardization of EV batteries to facilitate the battery recycling and the development of SLB solutions, according to the report. .
The advantages offered by the development of a localized recycling policy will be reflected in the cost of the batteries, which will reduce the initial cost. A residual value is assigned to batteries after their end of life as an EV battery, encouraging local companies to explore opportunities in the SLB market, reducing India’s need to import rare earth materials and improving the chain local supply.
May 22, 2022