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A Report by Arthur D. Little Indicates that India Must Embrace Sustainable EV Value Chain to Achieve Net Zero Goals

A study by Arthur D. Little indicates that it is necessary to understand the nuanced environmental and social risks of the EV supply chain to keep India’s 2030 Vision and Net Zero goals on track.

February 28, 2023. By News Bureau

Battery-powered electric vehicles (EV) have been hailed as clean vehicles that will transform mobility and significantly reduce transportation’s harmful impact on the environment.

They can be more ecofriendly compared to conventional internal combustion engine based vehicles throughout its lifetime. A study by Arthur D. Little indicates that it is necessary to understand the nuanced environmental and social risks of the EV supply chain to keep India’s 2030 Vision and Net Zero goals on track.

The study in their Viewpoint series, 'Towards a Sustainable Value Chain for Electric Vehicles in India' analyzes the risks and recommends an integrated approach to tackle the challenges to sustainability in the EV value chain thus making an electric vehicle cleaner and ecofriendly over its lifetime.

India is projected to have 10 million EVs on the road by 2030 and similarly many nations have made tremendous progress in the EV space driven by demand for cleaner transportation. But the risks of permanent ecological damage from air, water, and soil pollution, poor waste management, and human rights issues arising from the e-mobility value chain still needs to be addressed.

The report stresses on the need to lay the foundation to a sustainable EV value chain right from the start as India builds its electric mobility capabilities to cater its EV demand.

While the vehicles themselves provide for zero 'tailpipe' emissions, the battery comes with hazards that are all too often overlooked such as being made from scarce raw materials mined in an unsustainable manner risking human lives, having an unfavorable CO2 footprint in manufacturing, and being tough to recycle.

The viewpoint even explores on the rare earth metals used in the e-motors which are usually unethical sourced and has carbon intensive production.

Barnik Maitra, Managing Partner, Arthur D. Little (India), says, “India can and must counter the ecological footprint of the rapidly growing EV value chain. Embracing ethical sourcing of raw material for batteries, using renewable energy for charging and investing in development of new technologies for cleaner energy production will be key for success on the journey to Net Zero.”

Fabian Sempf, Principal and India Head of Automotive, Arthur D. Little, says “A circular EV value chain is a major driver for India to meet the terms of the Paris Agreement. The entire ecosystem must equip themselves to make their mark on the EV landscape. Battery players need to focus relentlessly on an open and collaborative R&D to improve cell chemistries with an innovative battery design that is more suitable, safer and cost-effective in the Indian context.”

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