Lithium ion battery prices are falling

What is a lithium ion battery?

A lithium-ion battery (Li-ion battery) is a type of rechargeable battery widely used for portable electronics and electric vehicles and were commercialized in the 1990’s.

Why are lithium ion battery prices falling and why is it important for India?

In the world today, there is a glut of lithium and thus the prices are falling. The reasons are

1. six new lithium mines opening in Australia, the country that is the world’s largest supplier of lithium
2. Australian lithium production is expected to rise 23% over the next two years
3. The second largest producer of the element, Chile, is planning to double production over the next four years
4. Chinese EV market has dipped. 

What are the benefits to India?

Prices have fallen 30% from their peak and they are expected to fall further for the reasons cited above. It augurs well for our ambition. Cheaper EVs will make them attractive.  

India unveiled the 'National Electric Mobility Mission Plan (NEMMP) 2020' in 2013 to address the issues of National energy security, vehicular pollution and growth of domestic manufacturing capabilities. Reiterating its commitment to the Paris Agreement, the Government of India has plans to make a major shift to electric vehicles by 2030.The Government started Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) scheme which provides incentives for purchasing electric vehicles. Government is releasing tenders to increase charging infrastructure in the country.

Indian app-based transportation network companies like Ola are working on making electric cars more common over the next two decades. Energy Efficiency Services Limited (EESL), a joint venture of PSU's of Ministry of Power, Govt. of India is leading the procurement and sale of Electric Vehicles in India.