OPEN APP
Home / Auto News / EV batteries are costly but their value chain offers revenue potential: Report
Listen to this article

EY has launched a report on the future of mobility titled “Unlocking the Electric Mobility Value Pools Along The eMobility Value Chain" at the “EV Industry @ 2030: Future Roadmap" conference conducted by The Society of Manufacturers of Electric Vehicles (SMEV). The report provides an in-depth view of the status and future of electric mobility along with a comprehensively defined EV value pool.

The report analyses the EV ecosystem, right from the manufacturing of battery packs to the end-of-life processes for discarded batteries. The EV value pool, as defined by EY, is comprised of nine different individual ecosystems, all interlinked and performing towards a sustainable future of EVs in India. 

The EY report highlights that for the EV industry to replicate the success of the Indian auto market sector, this value pool must be developed, and the market is mature for indigenous production with the help of support policies developed by national, state, and local government entities.

There is an opportunity to set up new business models where new players and the traditional automotive ecosystem come together in an organized manner to provide products and services to consumers.

There are opportunities for growth and setting up new business models for both traditional automotive players and new entrants in the market. The large gap in the manufacturing capability and forecasted demand for components for EVs can provide substantial growth in the coming decade. There are significant opportunities in the new streams of revenue such as in the battery manufacturing and recycling ecosystems, capabilities which does not exist in the country currently.

Som Kapoor, Partner, Future of Mobility & Autos Retail Leader, EY India, said “EV batteries are costly, but their value chain — use, reuse, recycle — offers revenue potential. Developing a used battery market presents a major opportunity for industry participants to create new assets, access valuable new revenue streams, secure supplies of raw materials, and drive EV use. It is a critical aspect of the future viability of EVs and will be a major competitive differentiator for those that drive the market as opposed to those that sit on the sideline."

Localisation will also offset the loss of manufacturing jobs from reduced manufacturing of traditional internal combustion engines (ICE) vehicles. Supportive policy, falling battery prices, a robust charging infrastructure, and supply chain localization are among the key factors that will instigate the growth of EVs in India.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout