EV Report Executive Summary -Sudeep Bhurat

Pre-Face
Internal Combustion Engines (ICE) were superior to electric vehicles before the end of the 19th
century, but today electric vehicles are technologically superior to ICE vehicles in almost every
aspect except for battery technology. While electric vehicles are simpler, more powerful,
greener, and smarter, the ability to store a large amount of energy in a small battery
economically is still a challenge. However, electric vehicles are a key enabler to the connected,
autonomous, and shared future of mobility and are a future that we need to embrace.

The ICE (internal combustion engine) to EV (electric vehicle) transition has started globally and
is being supported by policymakers with favourable policies such as financial incentives for
customers, capital expenditure assistance, tax exemptions, and protection for domestic
manufacturers. Battery technology has improved greatly in the past decade and has helped
bridge the economic gap between EVs and ICE vehicles. The battery prices have fallen by
almost 85%, and the prices are expected to decline further in the near future. Most OEMs have
laid down plans for electrification over the next 5-10 years, and many new OEMs have
emerged. Charging infrastructure is being developed to support EV adoption, and CPOs
(charge point operators) are being backed by traditional energy companies. India's domestic EV
ecosystem has started to flourish with a strong policy backing, and 2Ws and 3Ws are expected
to lead the EV adoption in India.

Electric Vehicle Ecosystem

The EV ecosystem refers to all the different parts that need to work together to make EVs
successful. These parts include:
● Policy makers: These are the people who make the rules and regulations that affect
EVs. They need to create policies that encourage people to buy EVs and make it easier
for EV manufacturers to sell their vehicles.
● Batteries: The battery is an essential part of an EV. It stores the electricity that powers
the motor. Batteries are expensive, so policy makers need to create policies that make
EVs more affordable, and manufacturers need to find ways to make batteries cheaper
and more efficient.
● Grid: The grid is the network of power lines and transformers that delivers electricity to
homes and businesses. As more people start driving EVs, the grid needs to be able to
handle the increased demand for electricity. This means upgrading the grid to handle the
extra load and shifting towards renewable sources of energy, like solar and wind power.
● Charging infrastructure: EVs need to be charged regularly, so there need to be enough
charging stations available to make it convenient for drivers to charge their vehicles.
Charging infrastructure also needs to be affordable, fast, and reliable.
● Original equipment manufacturers (OEMs): These are the companies that make the
vehicles themselves. They need to make EVs that people want to buy and that are
affordable. Customers: Ultimately, it's up to people to decide if they want to buy EVs.
They need to be convinced that EVs are worth the investment and that they're a better
 ● Customers: Ultimately, it's up to people to decide if they want to buy EVs. They need to
be convinced that EVs are worth the investment and that they're a better choice than
traditional gasoline-powered vehicles.

All of these parts need to work together to create an ecosystem that supports EVs. If any one
part isn't functioning properly, it can slow down the adoption of EVs.

Electric Vehicles 101

Types of EV
There are different types of EVs, such as mild hybrids, full hybrids, plug-in hybrids, battery
electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs).
● Mild hybrids are cars that have an additional small battery that gets charged when the
car slows down. This battery helps the engine run more efficiently and can power some
of the car's extra features like the air conditioning.
● Full hybrids are similar to mild hybrids, but they have larger batteries that can be
charged by the engine or by plugging in. They can run on electricity alone for short
distances before switching to a gasoline engine to keep going.
● Plug-in hybrids have even larger batteries than full hybrids and can run on electricity
alone for longer distances before switching to gasoline. They can be charged by
plugging in.
● Battery electric vehicles, or BEVs, are cars that run entirely on electricity. They have
large batteries that can be charged by plugging in, and they don't need gasoline or diesel
at all.
● Fuel cell electric vehicles, or FCEVs, are also electric cars, but instead of a battery, they
use hydrogen fuel cells to generate electricity. They produce only water vapor as a
byproduct, making them very environmentally friendly. However, they are still relatively
new and not widely available yet.
Electric Powertrain

● An electric powertrain is like a really powerful battery that powers a motor to make the
car go. And the cool thing is that this motor can make the car go really fast right from the
start, without needing to build up speed slowly like a regular car.
● Regular cars also need a special part called a transmission to help them go at different
speeds. But electric cars don't need that, so they're much simpler and easier to fix if
something goes wrong.
● Another great thing about electric cars is that they're really smart. They have computers
inside them that can tell you all sorts of things about how the car is doing, like how fast
you're going and how much power is left in the battery. And just like how your phone
gets updates to make it work better, electric cars can get updates too to make them even
better and smarter.

In short, electric cars are faster, simpler, and smarter than regular cars.
Key Components of EV and their cost contribution
An electric vehicle has two main components that replace the engine in a traditional gasoline
vehicle: the battery and the motor.

The battery stores the energy that powers the vehicle, and the motor converts that energy into
movement. One of the biggest challenges for electric vehicles has been developing batteries
that can store enough energy to provide a reasonable driving range, while also being safe and
affordable. Battery costs can make up to 35% of the total cost of an electric vehicle, making
them the most critical component in terms of cost.

The motor is the second most critical component in an EV. It needs a sophisticated controller to
work at its best performance and energy efficiency. The motor converts electrical energy from
the battery into mechanical energy to drive the vehicle.

Besides the battery and the motor, other key components include the drivetrain, which transmits
power from the motor to the wheels, and the chassis and body parts, which provide the
structural support for the vehicle.

When it comes to the cost contribution of the various components, batteries are the most
expensive part of an EV, followed by the electric motor and its controller. Other key components
include the cathode, separator, and anode in the battery, as well as current collectors,
electrolytes, and other supporting systems and equipment.

Li-ion is the future of EVs

Li-ion stands for lithium-ion, and it's the type of battery that's used in many electric vehicles
(EVs). Li-ion batteries are rechargeable and use a chemical reaction between lithium ions and
an electrolyte to generate electricity.

The great thing about Li-ion batteries is that they have a high energy density, which means they
can store a lot of energy in a small space. This is really important for EVs because they need to
have enough energy to travel long distances. Li-ion batteries are also lightweight and have a
long lifespan, which makes them ideal for use in EVs.

Li-ion batteries do have some drawbacks, though. They can be expensive to manufacture, and
they can also be prone to overheating and catching fire if they're not handled properly. However,
these risks can be minimized through careful design and manufacturing processes.

Li-ion batteries are the most advanced and widely-used battery technology for EVs, and they're
likely to remain the dominant technology for at least the next several years.

Li-ion the Race Within

Li-ion is not a single chemistry, but rather a broad set of competing chemistries, each with its
own unique advantages and disadvantages.
The table lists the following Li-ion chemistries:
 ● NCA (lithium nickel cobalt aluminum oxide), used in Tesla batteries
● LMO (lithium manganese oxide), used in flashlights and some EVs
● LTO (lithium titanate oxide), used in Mitsubishi and Honda EVs and buses
● LFP (lithium iron phosphate), used in mild hybrids and heavy-duty vehicles
● NCM (lithium nickel cobalt manganese oxide), used in Volkswagen, BMW, and MG EVs

The table shows that each chemistry has its own strengths and weaknesses. For example, NCA
has a high specific energy and cycle life but only medium safety, while LTO has a high specific
power and safety but only medium specific energy. LFP has high cycle life and safety but only
medium specific energy, and so on. Overall, the passage emphasizes that while there is a "race
within" the Li-ion industry to develop better chemistries, Li-ion as a whole has already been
widely adopted as the future of EV batteries. However, it also acknowledges that other battery
technologies, such as solid-state batteries, may eventually surpass Li-ion in terms of
performance and safety.

Li-ion Battery a Greater Understanding

A Li-ion battery cell is composed of an anode, a cathode, an electrolyte, and a separator. The
anode is the negative terminal and is typically made of graphite, which stores Li-ions when the
cell is charged. The cathode is the positive terminal and is made of lithium and other metals
such as nickel, cobalt, and manganese in the case of NCM chemistry. During discharge, lithium
ions migrate from the anode to the cathode to create an electric current, and during charging,
the process is reversed. The electrolyte is a non-metallic, liquid conductor that enables the flow
of ions between the cell terminals, and the separator is made of permeable material that isolates
the two terminals of a cell while allowing the passage of Li-ions. Each terminal of a cell also has
a current collector, and the movement of lithium ions creates a charge at the positive current
collector, while during the charging process, the electric current flows to the negative current
collector where the charge is stored.

Cell form factors refer to the physical shape and size of a battery cell, which can have an
impact on the design and performance of the battery pack.

The three most common cell form factors are cylindrical, prismatic, and pouch.
● Cylindrical: Cylindrical cells are the most commonly used form factor and are typically
used in laptops, power tools, and electric vehicles. These cells are often referred to as
18650 or 21700 cells based on their dimensions, and are typically long and cylindrical in
shape. The cylindrical shape allows for efficient heat dissipation and easy stacking,
making them a popular choice for high-capacity battery packs.
● Prismatic: Prismatic cells are rectangular in shape and have a larger surface area
compared to cylindrical cells. They are commonly used in smartphones and other
portable electronic devices, as well as in electric vehicles and grid storage systems.
Prismatic cells are often used when space is limited, and their flat shape makes them
easier to stack and arrange in different configurations.
 ● Pouch: Pouch cells are the most flexible form factor and consist of a thin, flexible pouch
that encloses the battery cells. These cells are commonly used in consumer electronics
and small portable devices, as well as in electric vehicles. Pouch cells are typically
smaller and thinner than cylindrical or prismatic cells, and can be arranged in a variety of
configurations to fit the design requirements of the device.

The Battery Management System (BMS) is a crucial component of a battery pack.

It measures and controls critical parameters to keep the battery safe and operating efficiently.
The primary function of a BMS is cell protection to prevent overcharging or discharging below a
threshold level, which can damage the cells and reduce their capacity permanently. The BMS
also performs energy management, monitors State of Charge (SOC), balances cells, and
controls charging to ensure safe and optimal performance. The sophistication of the BMS can
significantly affect battery performance, with more advanced BMS systems offering greater
control and protection.

Battery costs have three main components: cells, BMS (Battery Management System),
and the balance of pack, which includes thermal management and mechanical components.
Cells constitute 60-70% of the cost, the BMS constitutes 10-15% and the balance of pack
constitutes the remaining 15-20%. The cost split depends on the battery pack size, with larger
battery packs having higher costs skewed towards cells.

Battery pack prices have decreased rapidly over the past decade. However, the prices vary
widely depending on chemistry, scale of demand, and design. In India, battery prices are
considerably different from the global average due to material partnerships and massive scale of
operation, among other factors.

Lithium and cobalt are two important raw materials for cell manufacturing, and these materials
are rare and exhibit reasonably volatile pricing trends. Lithium is produced in only eight
countries, with three countries accounting for 85% of the total production. Four companies
control a majority of lithium production. Cobalt production is concentrated in the DRC
(Democratic Republic of Congo), which is a politically unstable region with large-scale supply
disruptions, controversies surrounding artisanal mining and child labor. Multiple key industry
stakeholders have clearly highlighted plans to minimize cobalt usage to avoid sourcing from the
DRC. Cobalt is extracted as a by-product during the production of copper or nickel

Battery chemistries of the future

● Li-ion batteries with silicon anodes can have significantly higher energy density than
those with graphite anodes due to the higher specific capacity of silicon, but silicon
swelling is a problem that causes the anode to expand during charging and creates
stress on the anode material, leading to failure.
● Metal-air batteries have exceptionally high energy densities, but face challenges with
unwanted solid electrolyte interphase layer formation, dendrite growth on the anode, and
 finding an electrolyte that meets all the desired properties and stability of the cathode
materials. Aluminum-air chemistry is a promising area of exploration due to the
abundance and safety of usage of aluminum, with Phinergy and Log9 Materials being
leading companies in this space.
● Li-metal batteries use lithium anodes instead of graphite anodes, which have twice the
energy density of Li-ion batteries, but are difficult to design with a liquid electrolyte due to
the high reactivity of lithium. Solid-state batteries are expected to facilitate the
commercialization of Li-metal batteries.
● Organic batteries use organic radical polymers as an electrode and eliminate metals
from batteries, making them eco-friendly and theoretically capable of offering similar or
even better performance than Li-ion batteries. However, they are still decades away from
commercial applications.
● Capacitors store energy electrostatically and have a very high power density, but
traditional capacitors have low energy density, making them unsuitable for energy
storage applications. Supercapacitors with special materials like graphene can hold
much more energy without losing high power density, with energy densities as high as
60-200 Wh/kg being developed. High-quality materials that can hold high energy and
withstand high voltages are a key bottleneck in their development. While they are
unlikely to replace batteries anytime soon, they are being used as a power assist in
vehicles by leveraging their high power density to assist the battery during acceleration
and recharging during regular operation.
● Li-S batteries use Sulphur as a cathode and Lithium as an anode, providing a high
energy density of 600 Wh/kg, with Sulphur being abundant and safe for use. However,
the underlying chemical reaction is complex and requires complex algorithms to model
cell performance. Oxis Energy is the leading company in this field, with Sion Power and
Sony also notable players.
● Solid-state batteries use a non-flammable solid electrolyte, making them safer, lighter,
smaller, and more powerful. A battery with a Li-anode and a LiI/Al2O3 electrolyte can
offer 2.5x the energy density of traditional Li-ion batteries, but they are not yet ready for
large-scale commercial production due to problems such as the formation of metal
deposits and the need to identify a uniform material for electrolytes that can be produced
at low cost. Major OEMs such as Ford, Hyundai, Nissan, Toyota, and Volkswagen have
invested in this technology, with Sakti3 and QuantumScape being leading companies in
this field.

A fuel cell is an electrochemical device that converts the chemical energy of a fuel (usually
hydrogen) and an oxidant (usually oxygen) directly into electrical energy. The process occurs
without combustion and produces water and heat as byproducts. The fuel cell consists of two
electrodes, an anode and a cathode, separated by an electrolyte. When hydrogen is fed to the
anode and oxygen is fed to the cathode, a chemical reaction takes place that produces
electrons and ions. The electrons flow through an external circuit to create an electrical current,
while the ions move through the electrolyte to the cathode, where they combine with the oxygen
and the electrons to form water. Fuel cell technology has several advantages over traditional
batteries. For one, fuel cells can produce electricity continuously as long as fuel and oxidant are
supplied, whereas batteries need to be recharged after a certain period of use. Additionally, fuel
cells are much more efficient than batteries, converting chemical energy directly into electrical
energy without the need for conversion losses.

However, fuel cell technology also has its challenges. The majority of hydrogen is produced
from fossil fuels, which is not sustainable and produces carbon emissions. The alternative of
producing hydrogen from water through electrolysis is more sustainable, but it requires a
significant amount of electricity, which should come from renewable sources to be truly
environmentally friendly. Moreover, fuel cell technology is still in its early stages of development,
and the cost of producing and implementing it remains high.

Current fuel cell cars come with a battery as well because the fuel cell design is not robust
enough to cater to the sudden power demand on rapid acceleration. Even if the fuel technology
were to become flexible enough to cater to large variations in power demand, batteries would
still be needed for storing electricity generated through regenerative braking, an auxiliary system
(for heating up, etc.) during start-up of the fuel cell, and to power other low voltage systems
within the car. For these reasons, fuel cell technology is not yet a significant threat to battery
technology, and both will likely continue to coexist in the future as complementary technologies
for electric vehicles.

Other Key Components

The electric vehicle (EV) powertrain consists of several key components, including the electric
motor, power electronics controller, DC/DC converter, thermal system, battery, onboard charger,
transmission, charge port, and traction battery pack.

● The electric motor replaces the engine in an internal combustion engine (ICE) vehicle
and propels the vehicle forward. Different types of motors, such as Brushless Direct
Current (BLDC) Motor, Permanent Magnet Synchronous Motor (PMSM), and Induction
Motor (IM), have different characteristics, and it is important to choose the right type for
an EV.
● The controller estimates how much energy needs to be supplied to the motor based on
the driver's demand, and it takes care of a variety of other functions within the EV
powertrain.
● The E-axle combines motor, power electronics, and transmission into a single casing,
which allows for neat packaging, simple integration, and improved efficiency.
● The inverter converts DC current from a battery into AC current for the motor.

In addition to these components, EVs require extensive design changes to the components that
are common with ICE vehicles, such as the chassis and wiring harness.

Electric Vehicle (EV) charging is the process of replenishing the battery of an electric
vehicle with electricity from an external power source. Unlike internal combustion engine (ICE)
vehicles, which can be refueled in minutes at a gas station, EVs need to be charged, and this
charging process is significantly slower than refueling. The charging speed of an electric vehicle
is dependent on the power of the charger, and the charging time is often limited by the battery
design. Charging a battery faster than the maximum specified rate can damage the battery.

EV chargers, also known as Electric Vehicle Supply Equipment (EVSEs), are used to charge an
electric vehicle. The major components of an EV charger include a rectifier (only present in DC
chargers and used to convert AC power into DC power), a power control unit, and a charging
gun. There are also safety locks that ensure that the current does not flow from the device until
it is connected to the vehicle.

EV chargers are classified into three levels based on the power and range of voltages they
support. Level 1 chargers support <3.3 kW, Level 2 chargers support between 3.3 and 22 kW,
and Level 3 chargers support >22 kW. EV chargers are characterized mainly on the following
four parameters: AC or DC, mode, connection type, and charger type. There are four globally
recognized modes of EV chargers, and each is defined to decide its charging application and
level of communication between the charger and the vehicle.The charger type typically refers to
the output socket and connector used by a charger, as well as the high-level communication
protocols between the charger and the vehicle that are required for Mode 4 charging. The
International Electrotechnical Commission (IEC) is the leading international standardization
organization for EV chargers, and these standards are generally adopted by different trading
zones and national organizations.

Global EV Industry
The EV industry has been evolving for almost 200 years, but it is only now beginning to take off
globally. The global EV car parc has exceeded 7 million units, with annual sales exceeding 2.2
million units. China is the largest market for EVs, with a 53% share of global EV sales in 2019,
followed by Europe and the United States. Norway, Iceland, and the Netherlands are the leaders
in EV penetration.
The leading OEMs in the EV space, with Tesla leading the sales chart, followed by BYD, BAIC,
BMW, and Nissan.

China
The Chinese government has been actively promoting the adoption of electric vehicles (EVs)
through various policies, including direct subsidies and regulations such as the EV quota and
Corporate Average Fuel Consumption (CAFC) targets. China is currently leading the global EV
market with over 270,000 EV chargers and 200+ GW battery capacity. However, changes in the
subsidy structure have affected the growth of the Chinese EV industry, with only 4%
year-on-year growth in EV sales in 2019 compared to 62% in 2018. As a result, the government
has decided to reduce the pace of subsidy cuts and has planned not to have any cuts in 2020.
The EV quota policy requires automakers to generate EV credit points, starting from 2019,
equivalent to 10% of the total vehicles produced, rising to 12% in 2020. By 2020, automakers
are required to meet the CAFC target of 5 litres per 100km. These policies necessitate the
OEMs to achieve significant adoption of EVs into their overall sales.