NITI Aayog initiates study on EV lifecycle amid dependence and concentration risks

New Delhi: With NITI Aayog questioning the dependence and concentration risks in the electric vehicle ecosystem, a study has been initiated on the comprehensive lifecycle assessment (LCA) of EVs with other mobility technologies, mainly those using oil and gas.

The primary objectives of the study are to quantify and compare the lifecycle environmental impacts of EVs, ICEVs, and clean fuel vehicles (E20, Bio-CNG, biodiesel) as well as to develop an India-specific spreadsheet tool for LCA that enables scenario analysis, said Niti officials.

The study will analyze a range of vehicle technologies including passenger vehicles (2, 3 and 4-wheelers), all commercial vehicles (light, medium and heavy), and public transport buses and omnibuses.

While emerging as a potential solution to environmental problems, the challenges of ensuring steady supply of different materials for manufacturing EVs remain as India is majorly import dependent for newer materials used in EV manufacturing -- lithium, metals from rare earth family (cobalt, nickel, manganese, copper), flame retardant and thermoplastics.

Speaking at the Battery Summit 2025 in May, Niti CEO BVR Subrahmanyam accepted that India neither produced the ecosystem components -- anodes, cathodes, electrolytes, chemicals -- that go into batteries, nor the key raw materials -- lithium, boron and others essential -- for emerging battery chemistries.

“This is a concern. We absolutely want to grow the EV ecosystem rapidly, but we cannot allow it to result in an unsustainable level of import dependency,” he asserted.

The environmental performance of EVs has also become a highly debated topic. While EVs are favoured for their lower on-road emissions, they involve the usage of critical minerals in batteries, that are highly energy-intensive at the time of extraction and manufacturing.

Additionally, the electricity used for charging the batteries has a high share of thermal-based generation in India, nearly 73 percent of coal-based electricity.

“If the environmental footprints of these factors are to be considered, the envisaged benefits of EVs may not be as true as perceived. Though tail-pipe emissions (tank-to-wheel) for EVs are zero, environmental impacts associated with their production (cradle-to-gate), and electricity generation source (well-to-tank) might outweigh the benefits accrued,” Niti officials said.

Therefore, the study aims to develop a comprehensive and India-specific LCA framework to evaluate various vehicle technologies, considering current and future scenarios for grid electricity, clean fuels, and mobility demands. It will also analyse EVs lifecycle impacts, including material sourcing, manufacturing, and end-of-life management to assess their net benefits.