Fall in lithium battery prices will boost EV sector, says Nitin Gadkari

The high cost of lithium battery packs is one of the key reasons behind the huge price gap between electric vehicles and their internal combustion engine-propelled counterparts. However, with the wider adoption of electric vehicles, and rapid development in battery technology, emerging technologies have been resulting in slumping prices of lithium battery packs. This fall in lithium battery prices will eventually boost the electric vehicle sector, said Union Minister for Road Transport ad Highways, Nitin Gadkari.

The minister said that the reduction in the cost of lithium batteries would significantly lower the price of electric vehicles, making them more affordable for consumers. He further stated that pollution is India's biggest challenge and the transport sector is a major contributor. Gadkari stressed on the urgent need to transition from fossil fuels to alternative energy sources, news agency PTI has reported. "Pollution is our country's biggest challenge, and a major part of it comes from the transport sector," Gadkari said, adding the shift to electric and alternative fuels is not just an environmental necessity but also an economic imperative.

The minister asserted the ongoing advancements in battery technology were key to India's transition to sustainable transport. He said India's dependence on fossil fuels is both an economic burden, as ₹22 lakh crore is spent annually on fuel imports, and an environmental hazard, making clean energy adoption crucial for the nation's progress.

India to be global EV production leader by 2030

Speaking of the growth of the Indian automobile sector, Gadkari said that the Indian auto industry has surpassed Japan to become the third-largest in the world since 2014. He also said that by 2030, India will be the world leader in EV production, significantly impacting the global auto market.

Gadkari credited the sharp decline in lithium-ion battery prices for making EVs more affordable and bringing them closer to price parity with traditional fuel-powered vehicles. "The price of lithium, which was $150 per kilowatt a few years ago, has now come down to nearly $100. Once it decreases further, the cost of electric vehicles will come down as well, making them more affordable for the masses," he said.

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