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The high dependence on imported lithium ion batteries (cells) is taking a toll on the vehicle industry that looks for a quick and quality transition from fossil fuel based to electricity mode. This time the Transport Minister of West Bengal – Firhad Hakim – has said that the state is not able to expand its electric vehicles’ networks just because there is an acute shortage of lithium ion batteries in the market.
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Hakim is also the serving mayor of Kolkata.
Speaking in a symposium organised by the Merchant Chamber of Commerce in the state capital of Kolkata, Hakim also held that this shortage of lithium ion batteries is hurting his dream of building a strong network of electric buses for the public in the state that emit zero carbon. Battery shortages are hitting his plans for more electric buses, he said.
The Minister said, “The manufacturers are not being able to meet the delivery commitments, as they have the buses ready but not the batteries.”
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He also apprised, “We are also exploring the idea of whether we could import the same from Australia and whether such import will be cost effective or not. Since the battery is the most expensive component, the vehicles will be costlier if the battery costs more.”
China has slowed down the export of lithium ion batteries. The price of battery grade lithium carbonate which is actually a powder has surged by about 27 per cent. The experts are of the opinion that the shortage of lithium ion batteries coming from China is due to the logistical breakage owing to the pandemic caused by COVID-19. The Asia giant is the leading player in producing top grade lithium ion batteries whose demand is rising across the world but the supplies have slowed down.
Hong Kong, Singapore, Indonesia, Japan and Germany are some of the other top lithium ion manufacturing countries besides China. Australia remains the largest lithium producer in the world and China controls about 80 per cent of the world's lithium refining and also 77 per cent of world’s cell capacity.
