EV infrastructure is expanding massively to meet growing demand

The estimates suggest that the country will require up to 20 lakh charging stations by 2030 to meet the needs of 5 crore electric vehicles. The government and private players are actively working on expanding the charging infrastructure. Several initiatives are underway to build 500,000 charging stations nationwide, says Anil Gupta, Business Head for Energy Infrastructure Solutions at Delta Electronics.

How is the increasing demand for EVs influencing the growth of EV infrastructure in India? 

The number of charging stations is expected to grow exponentially, with leading charge point operators and various other players such as marketing companies, PSUs, DISCOMS, private energy companies, and construction and real estate developers contributing to the increase.

According to a joint report by the Indian Venture and Alternate Capital Association, Indus Law, and EY, India will require around 100,000 charging stations by 2027 to fulfil the needs of roughly 1.4 million electric vehicles that are anticipated to be in use. A different study indicates that the country will need 20 lakh charging stations by 2030 to cater to 5 crore electric vehicles.

These charging stations will likely serve both fixed and swappable battery platforms, with AC-based slow charging options predominating in residential areas and DC-based fast charging options gaining popularity for commercial and public charging applications. Fast charging stations are expected to become more visible in major cities, metros, highways, expressways and Tier II and III towns across the country.

What are the benefits of the battery swap policy for the EV sector?

Given that India’s EV market will grow from the ground up, it seems prudent to design a policy solely for electric three- and two-wheelers. Batteries are the most expensive and fastest-depreciating component of an EV, so implementing a swapping system could help alleviate concerns about costs, range, and resource management. The e2w and e3w markets account for 90 percent of India’s EV market. The swapping policy will first target the electric three-wheeler fleet, followed by electric two-wheelers. Although removable batteries are provided by four of the top five E2W manufacturers, swappable batteries are different from swappable batteries because they cannot be recharged at home or replaced quickly using a subscription service.

The electric two- and three-wheeler customers will be the first to benefit from this scheme, as they can lease or subscribe to a battery-swapping service similar to domestic LPG. Battery manufacturers will work within a specific framework to meet interoperability standards, benefitting the entire segment, including Electric-Two-wheeler, Electric-three-wheeler, EVs, and buses.

However, the policy appears primarily aimed at electrifying fleets in the e-commerce delivery and three-wheeler transportation service sectors. Both have time constraints that even fast-charging stations need help addressing. The government’s target for commercial vehicle electrification remains high at 70 percent compared to private cars, expected to reach 30 percent market penetration by 2030.

The Delhi government has already mandated that all ride-hailing and delivery services use electric vehicles. While high-end EV manufacturers do not anticipate domestic charging being a problem for their customers, the low-cost electric car market is left in the dust, lacking an effective intercity and intracity charging ecosystem on which to rely. Swapping out lithium-ion batteries, which account for a significant portion of a car’s total weight, would be much more difficult, if possible.

How will we cope with the infrastructure needs for charging stations as EV demand and supply grow?

The Indian auto industry is dominated by low-cost two- and four-wheel passenger vehicles. This rapid rise in EV demand has been attributed to middle-class Indian families concerned about the “price tag” of a new car when purchasing. One of India’s most significant barriers to electric vehicle adoption is its high cost.

According to a recent report, India will have approximately 5 crore electric vehicles by 2030, with E-two wheelers accounting for roughly 70 percent of total EV sales. JMK Research estimates that India will require about 20.5 lakh charging stations to support this massive growth by then. This implies a growing need to rapidly expand the electric charging infrastructure, especially given that range anxiety remains one of the most significant barriers to EV adoption.

By 2027, India is expected to have 100,000 charging stations. Electric two-wheelers are likely to rely solely on public charging stations for top-up charging, whereas electric three-wheelers are expected to use captive charging stations. Currently, the number of charging stations in India needs to be increased, with approximately 32 EVs per charging station. In the future, public fast charging will be required to support India’s charging infrastructure, supplemented by AC chargers with capacities ranging from 3–22 kW at workplaces, shopping malls, and restaurants.

Businesses have already started constructing their charging infrastructure to meet the increasing demand. While there hasn’t been much progress in establishing charging stations under the FAME scheme or by major industry players, the 2030 target seems feasible due to ongoing initiatives led by charge point operators, oil marketing companies, and government entities at both the central and state levels to build 500,000 charging stations. For instance, Andhra Pradesh and West Bengal have set targets of setting up 100,000 charging stations by 2024 and 2026, respectively. This suggests that the groundwork has been laid, and 2023 is likely to be a critical year in India’s EV revolution.

What are the challenges for the Indian EV market regarding raw materials, prices, and imported parts?

For standard parts such as the external body, chassis, harnesses, tires, gearbox, braking and lighting systems, and electronics, experienced suppliers in the auto industry can ensure consistent supply with guaranteed quality at reasonable rates. However, for specific critical components such as the traction battery pack with a reliable BMS, the traction motor and its controller, the vehicle control unit, the DC-DC converter, the DC/AC charging inlet, the AC HVAC units, and other key components of the powertrain, consistent and reliable quality with efficient performance can be ensured more through mass production and performance feedback obtained from the field.

Many OEMs are still importing major components and batteries from other countries, and supply chain disruption due to COVID-19 is a major concern. OEMs must realign their global supply chain to improve domestic manufacturing capabilities while taking advantage of government incentives and partnering with global leaders. In addition to domestic R & D, tie-ups with world Li-ion batteries and EV leaders under the Make in India scheme help improve the battery’s cost competitiveness, quality, and reliability, the heart of any EV.

A significant production level can be attained by reducing variety and implementing standardisation. This would result in lower input costs for suppliers as they could purchase bulk raw materials and other necessary inputs.

What are your opinions on expanding localisation and producing domestic lithium-ion batteries for EVs?

The Indian government declared on February 9 that a previously unexplored lithium reserve of 5.9 million tons had been found in Jammu and Kashmir. Lithium is a crucial component of lithium-ion batteries extensively used in electric vehicles and for storing renewable energy from wind and solar power sources. As a non-ferrous metal, its significance has never been greater for global commerce and the worldwide effort to combat climate change.

India is currently gearing up to extract and refine lithium from the newly discovered reserve, with plans to conduct auctions for private entities this summer. This move is aimed at decreasing the country’s dependence on imported minerals, boosting its sluggish electric vehicle industry, and paving the way for India to achieve its clean energy objectives. A constant supply of raw, refined, and processed materials is essential to establish a robust and reliable domestic industrial base for lithium-ion batteries. Additionally, efforts must be made to explore sustainable substitutes and diversify supply from secondary and unconventional sources.

The primary objective is to minimise India’s dependence on scarce materials like cobalt and nickel and build a more robust and resilient supply chain. Developing a domestic supply chain for lithium-based batteries requires a national commitment to solving scientific challenges for new materials and establishing a manufacturing base to cater to the growing EV and electrical grid storage markets. As the domestic supply chain expands, it is vital to update environmental and labour standards.

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