Blume EV Primer 2.0 (June 2023)

Demystifying the Indian
EV Ecosystem
June 2023
Arpit Agarwal
Venkatesh Modi
Acknowledgements
As investors, we have the privilege of getting the front seat view of upcoming industries when we engage with
entrepreneurs. In this second version of the report, we attempt to reiterate our learnings that we gathered by
meeting and working closely with entrepreneurs in the EV ecosystem and the changes that have happened over
the last 1 year. We are especially thankful to the founders and team of Yulu, Euler Motors, ElectricPe, Battery
Smart, Autoverse, Zypp, Log9, Exponent Energy, Ohm Mobility, Godi Energy and PMI Electro for sharing their
insights. We would also like to express our gratitude to several leaders of the Indian auto industry for helping us
understand some of the basics of this ecosystem.
We are grateful to BNEF and Avendus Capital for providing us with future estimations.
We are thankful to the entire team at Blume Ventures for their support and encouragement, in particular Disha,
Rohit and Sonisha for providing key feedback. We also want to acknowledge contributions of our intern Advik
Singh in key segments of this primer.
Blume Ventures | Background

• In 2010, Karthik and Sanjay started Blume Ventures with a mission to reimagine startup finance for India.
• They did that by creating an unusual kind of venture firm, one that could move with the speed of an angel
investor, but be institutionalized in its approach. Blume bridged a gap that had existed in the Indian
venture market then, between local angel networks and larger global venture capital firms.
• The founders who partner with us, or rather who we had the privilege of partnering with, are a diverse lot.
They don’t fit any particular demographic profile nor do they conform to any specific pedigree. They may be
building a B2C ventures or a B2B ventures. Their customers may be users in Bharat or enterprise CXOs in the
Bay Area. Irrespective of these differences, we find that they are all obsessed with solving hard problems,
usually one triggering a fundamental change in consumer behaviour and birthing large markets.
Capital Managed Startups Backed Key Investments
$600M+ 175+
Blume Network
Blume Mobility Portfolio

AUTO COMMERCE LAST-MILE DELIVERY PERSONAL MOBILITY ELECTRIC VEHICLES
Unicorn
Online used-car marketplace
Soonicorn
On-demand hyperlocal delivery.
Full-stack commercial EVs

Battery swapping
Inter-city shuttle buses on an First- and last-mile for last-mile logistics
for 2-wheeler and 3-
Series B asset-light model 2-wheeler micromobility network
wheeler EVs
Series A
Autonomous EVs for shopfloors
(“Waymo for shopfloors &
warehouses”)
EV Charging as a
service
Seed/Pre
EV Components
Series A Manufacturer
Digital Auto Parts Distribution

Platform
EV Financing Platform
4
As on May 2023

About the authors
Arpit Agarwal Venkatesh Modi

Arpit is a Partner at Blume Ventures. Blume is one of India's leading early Venkatesh's professional journey has come full circle, starting as an
stage venture capital rms with investments in winners like Unacademy, intern at Blume in 2017, joining one of their portfolio companies, Locus
Spinny, Slice, Purplle, Turtlemint, Dunzo, GreyOrange and Carbon Clean. Arpit and eventually joining Blume as part of the investment team in 2020.
has been covering a variety of sectors for Blume, currently focused deeply on Currently, at Blume, he focuses on deep-tech, EV, and Climate Tech
ClimateTech, Electric Mobility, Logistics, Healthcare and DeepTech. Over the sectors.
years, Arpit has led investments into Spinny, Cashify, Euler Motors, Battery
Smart, BeatO and THB, each of them leaders in their industry segments. During his time at Locus, he had the opportunity to work closely with
the founder's of ce and handle client engagements in South East Asia,
He is amongst the most passionate people in India on enabling startups. He speci cally in countries such as Indonesia and Vietnam.
co-founded Headstart Network, India's largest startup community which
touches more than 100,000 entrepreneurs annually. He also co-created India In terms of education, Venkatesh is a graduate of NIT Trichy. As the
DeepTech, an industry alliance for promoting deeptech startups. He was President of the Entrepreneurship Cell, he engaged with startups, VCs
named in the prestigious 40-under-40 lists by Equali (erstwhile AIWMI) in and the larger ecosystem early on.
2020.
When he's not immersed in the business world, you might nd him
Before joining Blume, Arpit started Acadmic Ventures, a consulting rm for cycling through the vibrant streets of Bangalore, enjoying the city's
commercializing technology, sold High-Performance Computing at Tata CRL pleasant weather. And to unwind, he indulges in the timeless charm of
in Pune and wrote video codecs at Ittiam Systems in Bengaluru. He is an rock music.
alumnus of IIT Bombay and NIT Trichy. 5
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A guide to read this report
This report begins with a quick overview of the EV space and its fundamentals. Post the introduction, the report
is split into ve parts - 1) OEM business, 2) EV Distribution Business, 3) Energy Business, and 4) Financing 5)
Battery Recycling . The primer is designed in a way that the reader can pick up a singular part from the report in
case s/he is interested in that speci c segment.
We are introducing 2 new sections: 1) EV Distribution Business and 2) Battery Recycling given the number of
companies that are building up in this space and the potential of these markets to become large.
We have made reasonable assumptions while coming up with the estimates, particularly around market sizes
and TCO (total cost of ownership) calculations. In several cases, we took learnings from our portfolio companies
to create scenarios establishing a concept.
We believe each of these ve facets present sizeable opportunities within them. As compared to an year earlier,
more investment has own into these business models and we are happy to report that most of the cold start
problems discussed in the previous edition are getting solved. Through this primer, we continue to help build a
framework that allows entrepreneurs, investors, and corporates to navigate this tricky space better.
While we believe we have considered all possible scenarios, the possibility of errors and blindspots is never zero.
We are open to feedback and suggestions at climate@blume.vc.
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Part 1: Basics of an EV
What is an EV?
Battery Enabled Vehicles (BEVs) are a

type of electric vehicle which uses
chemical energy stored in
rechargeable battery packs with no
secondary source of propulsion. They
do not have an IC engine or any fuel
cells to power the vehicle. It uses
electric motors for conversion of
electrical energy into mechanical
energy to power the wheels for
Source: U.S. Department of Energy, Alternative Fuels Data Center motion.
For the purpose of this report we will stick to the definition EV only representing Battery Enabled Vehicles (BEV) (and not any kind of hybrid, fuel cell models). 8

Types of Electric Vehicle popular in India and upcoming
2 Wheeler 3 Wheeler
Euler HiLoad
Revolt RV 400 Ather 450x Yulu Dex NV
4 Wheeler
E-Rickshaw
Mahindra Treo
TATA Ace EV TATA Ultra Bus TATA Nexon
9
The scope of the report covers the following vehicle
categories
2W 3W 4W 4W
Category L3 L5 Car Bus
Passenger Passenger Passenger Personal

(Scooter +
Bike)
Segments
Cargo Cargo Fleet (Cabs)
Intracity
Cargo
10
2W Passenger became TCO positive sometime in 2017-2018
with subsidy in place resulting in 10x jump in sales
EV (with subsidy) ICE
₹400000
₹300000
TCO (in INR)
₹200000
₹100000
₹0
2014 2015 2016 2017 2018 2019 2020 2021 2022
Sales 1,644 1,422 1,435 1,440 15,108 26,255 25,172 1,41,441 5,84,665
All costs are ex-Delhi costs; Vehicle usage to be 30 kms/day for 5 yrs; inflated prices of fuel/energy considered; On-road mileage with a 20% discount from book mileage taken; Battery replacement cost for EVs considered wherever
applicable; Salvage value of ICE considered as per orange book value; Salvage value for EVs calculated with depreciated components - Battery, Mechanical, Electrical, Electronics and future battery prices; Vehicle sales data per 11
Vahan Dashboard;
2W Passenger will become TCO positive in 2023 without
any subsidy
ICE EV (With Subsidy) EV (Without Subsidy)
₹300k
₹225k
TCO (in INR)
₹150k
₹75k
₹0k
2022 2023 2024 2025 2026 2027
All costs are ex-Delhi costs; ICE = Honda Activa; EV = Ather 450X; Vehicle usage to be 35 kms/day for 5 yrs; inflated prices of fuel/energy considered; On-road mileage with a 20% discount from book mileage taken; Battery
replacement cost for EVs considered wherever applicable; Salvage value of ICE considered as per orange book value; Salvage value for EVs calculated with depreciated components - Battery, Mechanical, Electrical, Electronics and 12
future battery prices
4W Passenger in 2023 is TCO positive with and without subsidy
due to availability of a smaller car and lower interest rates as
compared to 2022
ICE EV (with subsidy) EV (without subsidy)
₹19L ICE: Tata Tiago XZ Plus (CNG)
EV: Tata Tiago Long Range EV
₹14L Compared to 2022, TATA launched a

TCO (in INR)
smaller car (hatchback) across

different battery pack sizes making it
₹10L more affordable for the population.
Additionally, better interest rates in

2023 have significantly increased the
₹5L TCO gap.
₹0L
2023 2024 2025 2026 2027
All costs are ex-Delhi costs; Vehicle usage to be 35 kms/day for 7 yrs; inflated prices of fuel/energy considered; On-road mileage with a 20% discount from book mileage taken; Battery replacement cost for EVs considered wherever
applicable; Salvage value of ICE considered as per orange book value; Salvage value for EVs calculated with depreciated components - Battery, Mechanical, Electrical, Electronics
13

Vehicle Cost is the highest costs in the TCO of an EV

Principal Financed Registration Cost Downpayment Interest Cost
Insurance Cost Energy Cost Maintenance Salvage Value
TCO
TCO for a 4W Passenger ICE
Principal Financed Road Tax & Registration

Cost
Downpayment Interest Cost
Insurance Cost Energy Cost
Maintenance Salvage Value
TCO
TCO for a 4W Passenger EV
1.Data represented for a 4W Passenger EV without subsidy; 2. Down payment taken to be 15% of ex-showroom cost; 3. Financing assumed to be for 5 yrs; 4. Energy Cost considered with inflated prices over the years; 5. Battery
Replacement Cost calculated per the battery price projections in future; 6. Salvage value determined per the battery price projections in the future and other components depreciation 14

Energy is the highest cost in the TCO of an ICE

Principal Financed Registration Cost Downpayment Interest Cost
Insurance Cost Battery Replacement Energy Cost Maintenance
Salvage Value TCO
TCO for a 2W Passenger ICE
Principal Financed Road Tax + Registration
Downpayment Interest Cost
Insurance Cost Energy Cost
Maintenance Cost Salvage Value
TCO

1.Data represented for a 2W Passenger EV without subsidy; 2. Down payment taken to be 15% of ex-showroom cost; 3. Financing assumed to be for 5 yrs; 4. Energy Cost considered with inflated prices over the years; 5. Battery
Replacement Cost calculated per the battery price projections in future; 6. Salvage value determined per the battery price projections in the future and other components depreciation 15
All segments of vehicles are TCO positive with subsidy
Vehicle Category Status ICE Model ICE TCO EV Model Subsidy No Subsidy
2-Wheeler Honda Active

Positive ₹ 2,32,359 Ather 450X ₹ 1,87,324 ₹ 2,35,284
Passenger OBD2
2-Wheeler Ampere
Positive Hero Splendor ₹ 3,10,991 ₹ 1,66,817 ₹ 1,66,817
Commercial Magnus
2-Wheeler Bike Positive Bajaj Pulsar 150 ₹ 3,10,109 Revolt RV400 ₹ 1,96,375 ₹ 2,14,709
3W Passenger Positive Bajaj Auto RE ₹ 8,20,029 Mahindra Treo ₹ 4,59,641 ₹ 5,77,987
3W Cargo Positive Bajaj Maxima ₹ 10,66,131 Euler hi-load ₹ 6,33,154 ₹ 8,07,367
Tata Tiago XZ Tata Tiago EV

4W Passenger Positive ₹ 14,08,116 ₹ 8,79,605 ₹ 11,37,776
Plus (CNG) Long Range
4W Tata Tigor (CNG

Positive ₹ 28,36,049 TATA Tigor EV ₹ 17,01,152 ₹ 20,12,201
Commercial Plus)
4W Cargo Positive TATA Ace Gold ₹ 32,72,749 TATA Ace EV ₹ 17,53,631 ₹ 20,19,069
Bus Negative Tata Marcopolo ₹ 3,15,03,599 PMI Electro ₹ 3,27,05,119 ₹ 3,27,05,119

16
All numbers are in INR; Link to detailed TCO calculations here
EV New Sales Penetration to reach as high as 85% in 3W,
Intracity bus segment with falling TCO across segments
2W 3W - Passenger 3W - Cargo 4W (Passenger) 4W (Cargo) Bus - Intracity
Actual higher penetration 15.29% 0.99%
90%
75%
60%
45%
30%
15%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
This chart is basis our in-house estimate of penetration in the market. We have taken into consideration the supply capacities and also the demand in larger city centers, where the ecosystem is more ready to adopt EVs. Vehicle 17
Projections taken per the base on the number of units sold in 2022 (ref Vahan Dashboard); 3W does not include e-richshaws; Does not include vehicles <250W power; Validated by industry experts
2W new EV sales to reach ~12M in 2030
2W Actual
11.97M
9.97M
8.31M
New EVs Sold (2W)
6.39M
4.26M
2.66M
1.77M
1.04M
0.75M
0.58M
2022 2023 2024 2025 2026 2027 2028 2029 2030

3W segment to sell >340k units in 2030
3W Passenger 3W Cargo Actual Sales
Projected 3W (L3 + L5 + Cargo)
187.53k
160.3k
156.27k
133.58k
New EVs Sold
120.21k
102.76k
92.47k
79.04k
71.13k
60.8k
54.71k
46.77k
36.47k
31.18k
25k 24.13k 22.79k
19.48k
2022 2023 2024 2025 2026 2027 2028 2029 2030

4W segment to sell ~900k units in 2030
4W (Passenger) 4W (Cargo) Actual
Projected 4W (Passenger)
584.68k
408.12k
378.65k
New EVs Sold
340.1k
283.41k
252.8k
218.41k
167.91k
155.72k
129.77k
109.3k
86.51k
59.66k
33k 38.72k
25k
1.67k 6.75k
2022 2023 2024 2025 2026 2027 2028 2029 2030

Intracity Buses to sell >20k units in 2030
Intracity Bus Actual
20,902
16,892
New EVs Sold
13,104
11,119
9,242
7,469
5,794
2,388
1,959
931
2022 2023 2024 2025 2026 2027 2028 2029 2030
2W new EV Sales to cross >$20B by 2030
2W $21.7B
$18.2B
$15.2B
Market Size (in USD)
$11.7B
$7.8B
$4.9B
$3.3B
$2.1B
2023 2024 2025 2026 2027 2028 2029 2030
New EV Sales to cross >$5B by 2030 across 3W and Bus
3W (L3+L5+Cargo) Bus
Market Size (in USD billions)
$3.55
$2.82
$2.16
$1.8 $1.7
$1.48 $1.4
$1.18 $1.1
$0.91 $0.9
$0.7
$0.38 $0.5
$0.2 $0.3
2023 2024 2025 2026 2027 2028 2029 2030
New EV Sales to cross >$13B by 2030 across 4W
4W Passenger 4W Cargo
7.98
Market Size (in USD billions)
5.15 5.31
4.40
3.65
3.42
2.80
2.27
1.99
1.66 1.47
1.11
0.79
0.52
0.02 0.09
2023 2024 2025 2026 2027 2028 2029 2030
Basics of an EV
Subsection : How is an EV different
from an ICE?
Why is EV a fundamental innovation?
Far less complicated than ICE vehicle
● Fewer moving parts = Small(er) assembly lines + lower maintenance.
● 10-15x more models/brands of EVs will emerge due to lower barriers to entry = one for each
specific use-case.
Connected, by default
● Change in mindset of OEMs from one time sales to services.
● New business models around connectivity, servicing are emerging.
● Autonomous driving as a goal is closer with enhanced connectivity.
Costlier to get one, cheaper to live with
● 0-60% costlier to buy(with FAME II subsidies), running cost is 60-80% less – Fleet / heavy
use-cases become positive quickly.
● With FAME II subsidy most segments of passenger and cargo vehicles are TCO positive.
● Costs are coming down by 2x in 10 years – making each category even more affordable.
26

Key components of an electric vehicle

Price (~% of
Component Image Use
BOM)
Consists of multiple cells put together to

form the source of energy that powers the
Battery Pack 35-50%
motor
Converts electrical energy from battery to

mechanical energy to be supplied to the
Electric Motor 10%
wheels
Controller regulates the electrical energy

Power Train (Motor from the battery to the motor and other
~5%
Controller) components
Power Train Converts electric current into AC/DC

~5%
(Inverter)
27
Battery
28
Battery
Li-Ion is the mainstream for next 5 years
Li-Ion with its higher specific energy (Wh/kg), energy density (Wh/L) and specific power (W/kg) makes it the most adopted and
widely used cell chemistry. However, the right chemistry depends on multiple parameters which have a long term effect.
We expect the rise of Sodium-Ion batteries in the next 18-24 months as well.
Source: Avendus EV 2020 report 29
Battery
BYD Blade Battery

Launched by BYD in 2020, Blade Battery is the only battery that successfully passes the nail penetration test, the most rigorous way to test the
thermal runaway of batteries.
While undergoing nail penetration tests,

Blade Battery emits neither smoke nor
fire after being penetrated, and its surface
temperature only reaches 30 to 60 ° C.
Under the same conditions, a lithium

battery mostly exceeds 500 ° C and has
violently burns.
For a conventional lithium iron phosphate

block battery surface temperature
reaches dangerous temperatures of 200
to 400 ° C.
30

Battery
BYD Blade Battery

Innovation Ultra Strength
Successfully passed the extreme strength

test of 46-ton truck rolling over it
Ultra Safe
Succesfully passed the "Mt Everest" nail

penetration test
Super Power
Only 10min needed charging from

10%-80%
Ultra-long Lifespan
Supports a long battery life with over

3000 charge and discharge cycles.
Ultra Long Range
Allows a range capacity exceeding

1,000km together with e-Platform 3.0
31
Battery
Cell Components and Functions

The negative terminal in a Li-ion cell generally consists of Graphite
Anode and when the cell is charged, Li-ions get stored in Graphite layers
The positive terminal consists of Lithium along with other metals.

Lithium ions migrate from the anode to the cathode during
Cathode discharge to create an electric current and the process reverses
during charging
It enables the flow of ions between the cell terminals. The most
Electrolyte commonly used electrolyte is Lithium Hexafluorophosphate,
although it can be a non-metallic liquid conductor
Separator is made out of semi-permeable material that isolates

Separator cathode and anode to prevent the flow of electrons through it
but allow the passage of Li-ions.
Cathode Separator Anode
Current Each terminal of a cell has a current collector, at the negative and
positive end. They facilitate the flow of electricity from positive
Electrolyte Collectors end to the vehicle motor during use and flow to the negative end
during charging
Correlation between Fast

Components and Capacity Safety Power Sustainability
Charge
Characteristics
Source: Avendus EV 2020 report 32
Battery
Battery Degradation: State of Health affects the depreciation

of an EV
A Li-Ion battery undergoes battery degradation over time and it loses its ability to hold charge.
This is represented by State of Health (SOH) which represents the current energy storing capacity of a battery after usage
over a period of time.
Tesla’s battery packs are one of

the most advanced and have
>80% SOH even after 200k miles
of distance travelled.
SOH affects the range of the

vehicle and is directly
proportional to the depreciation
and the end value of the vehicle
Source: Tesla
33
Battery
Battery Management System: Brain of the battery pack

controlling all its functions and controls degradation of the
battery
Key Functions
Cell Protection - manages the charge in the cells to protect it from overcharge (=overheating) and
undercharge
Energy Management - controls the flow of energy in/out of the cell and monitors the State of Charge
(SOC) for maximum utilisation
Cell Balancing - prevents few cells from getting stressed during charging to avoid charge termination
and reduction in life of the battery
Provide telemetry from battery/cells such as voltage, current, temperature pressure, SOC, SOH(State of
Health)
34

Battery
AIS 156: The new regulation for batteries in EVs
• The formulation of AIS 156 was primarily triggered by a series of re incidents involving
electric vehicles.
• These incidents highlighted the need for stringent safety measures to be implemented
regarding battery technology.
• By establishing comprehensive guidelines, Ministry of Road Transport and Highway (MoRTH)

sought to create a safer environment for EV users and minimize the risk of battery-related
accidents.
• On September 27, 2022, MoRTH made changes to the implementation timeline in response
to clari cations sought by Original Equipment Manufacturers (OEMs) and battery
manufacturers. The revised timeline was divided into two phases:
1. Phase 1: Effective from 1st December 2022
2. Phase 2: Effective from 31st March 2023
35
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Battery
AIS 156: Scope of the regulation
Battery Packs: The regulations focus on the design and packaging of battery
packs to ensure they operate within controlled environments. Compliance requires
meeting speci c safety standards to mitigate the risk of re incidents.
Chargers: The safety requirements extends to EV chargers, ensuring they are

designed and manufactured to meet the necessary safety standards. This is aimed
to prevent any hazards during the charging process.
Battery Management System (BMS): The BMS, responsible for monitoring and
controlling the battery's performance and health, is also subject to the safety
regulations. Compliance entails adherence to strict safety guidelines to ensure
optimal functioning.
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Battery
AIS 156: Some features (1/2)

Traceability: Tracking of battery pack components, including packs, cells, BMS, and chargers to
enable effective monitoring and facilitates tracing back components in case of any issues,
ensuring accountability and swift resolution.
Additional Safety Fuse: An additional safety fuse is required to enhance battery pack safety.
This provides an extra layer of protection against potential hazards, such as overcurrent or short
circuits, by interrupting the electrical circuit.
Protection against Regenerative Braking: Safeguards to protect the battery pack during
regenerative braking, preventing potential battery damage or overheating.
Cell-to-Cell Spacing: Adequate spacing ensures the ef cient release of heat, minimizing the
risk of thermal events and improving overall safety.
IPx7 Compliance: Helps protect the battery pack from water-related damage, enhancing its
longevity and performance under different weather conditions.
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Battery
AIS 156: Some features (2/2)

Microcontroller and Microprocessor-based BMS: Requires BMS to be based on microcontrollers and
microprocessors, incorporating multiple safeguards such as protection against overcurrent,
overcharge, over-discharge, over-voltage, short circuits, and over-temperature conditions.
Earth Leakage Detection: Chargers to be equipped with earth leakage detection mechanisms to
identify any leakage of electric current to the earth. This feature enhances safety by preventing
electrical shocks and minimising the risk of re incidents.
EMI/EMC Testing: BMS units are subjected to Electromagnetic Interference (EMI) and
Electromagnetic Compatibility (EMC) testing as per AIS 004 standards. This minimises the potential for
interference with other vehicle systems.
Thermal Propagation Tests: To assess BMS’s ability to prevent or limit the spread of thermal events
and evaluate the pack's thermal management capabilities, helping mitigate the risk of re or thermal
runaway.
Audio-Visual Warning: In the event of a thermal event, the regulations mandate the inclusion of
audio-visual warning systems. These alerts notify vehicle occupants and nearby individuals, enabling
timely evacuation and ensuring safety during such critical situations.
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Battery
AIS 156: Impact on the ecosystem

• Recertification of existing components leading to higher lead times
• Redesign of the supply chain to source reliable and certified components
• Costlier components due to increased safety regulations such as use of microcontrollers, etc
OEM
• Temporary decrease in sales due to recertification process
• Smaller players who cannot comply will have to exit the market
• Redesign of components to comply with the regulations
Auto • Redesign of manufacturing and production processes

Components
Supplier • Higher investments into testing of components
39

Battery
Key Design Considerations & Impact (Cell/Battery Pack):

“Safety>>>Performance”
Design Category (in priority) Consideration Impact
What is the weight and the capacity of the battery Defines the cell chemistry to be used which determine
Cost
pack? the cost of the battery pack
Defines the thermal stability, energy density, cycle

Performance & Safety Which cell chemistry to build on?
time
Where to procure the cells? Eg:LG Chem, Panasonic,

Supply Chain & Safety Minimizing failure rate of bad cells in a batch.
Samsung, BYD, CATL or other vendors
What kind of cell balancing is to be achieved during

Safety Ensures overall thermal stability is maintained
charging?
What is the charging rate “c” which is to be Determines use of fast vs slow charging capabilities
Safety & Performance
achieved? (dependent on cell chemistry) (some chemistries allow for accepting >1c of charge)
Defines how fast can the batteries be charged with

Safety & Performance What is the cooling system to be used?
safe operating temperatures
What kind of BMS is to be used? Cheap vs High Impacts the life and the capacity of the battery pack
Performance
End? with advanced BMS able to maximize output
Dictates the limits of mechanical stress & fatigue from

Performance Where is the battery pack placed?
driving road conditions
40
Battery
Battery Pack price trend over the next 10 years

200 Prices in 2022 shot
Global Battery Prices Actual Prices India Battery Prices
up due to higher
186 180 prices of Li-
175 Carbonate. We
172 expect the prices to
stabilise from 2024
159
onwards due to
158
Battery Price (USD/KWh)
increased production
142 and mining capacity.
144 140
137
Additionally, we
130 125 124 anticipate
introduction of
116
112 Sodium Ion
116 109 chemistries to help
103 keep Li-Ion prices in
100
102 95 96 check.
90 89
85
88 80 82
75
74 70
60
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Battery Pack prices have been constantly dropping over the last decade making EVs extremely affordable for multiple use
cases, helping OEMs adopt them and, subsequently, make it available to the masses.
41
Source: Avendus, Internal Research

Electric Motor
42
Electric Motor
Most commonly used electric motors

Electric Motor is responsible for conversion of electrical energy into mechanical energy for the
propulsion of the vehicle
Commercially Available & Commonly Used BLDC PMSM IM
Brush-Less Direct Current Motor (BLDC) Efficiency
A BLDC delivers current through the commutator

into the coils on the rotor. The rotor is a permanent Cost
magnet; the coils do not rotate, but are instead
fixed in place on the stator
Torque Density
Permanent Magnet Synchronous Motor
(PMSM)
Power Range
A type of AC synchronous motors, where the
field is excited by permanent magnets. A
permanent magnet is used as a rotor to Size
create a magnetic field.
Induction Motor (IM)
Ease of Control
A type of asynchronous motor where the
electric current in rotor is obtained by EM
Applications Light EVs - 2W/3W High performance Between 2W to
induction from the magnetic eld of the
EVs - cars & buses Buses
stator winding.
Examples Hero Electric Optima, Nissan Leaf, Hyundai Tesla Model S,X
Ather 450x Kona, Toyota Prius
Highest Medium Least 43

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Electric Motor
Upcoming motor designs
Recent Motor Designs (Software Controlled)
Switched Reluctance Motor Applications
This type of motor runs through reluctance torque These motors are applicable where sizing,
where power can be transmitted to windings within and horsepower (hp) to weight, are critical.
the stator instead of the rotor unlike DC motors
Synchronous Reluctance Motors (SynRM) Advantages
In this the rotor has no windings or magnets, just 1. The rotor is potentially less expensive than
electric steel plates stacked together to form a rotor PM and IM motors
package. Unlike in an induction motor, a SynRM 2. The specific torque is acceptable and it is
rotor has no induced current and thus no losses. not affected by the rotor temperature
3. The field-oriented control algorithm is
simpler with respect to the one of IM drives.
44

Electric Motor
Comparison of ICE and Electric Motor
Number of moving Energy

parts Recuperation
Low High No Yes
ICEV BEV
BEV ICEV
Power Density Torque at Standstill
Low High No Yes
ICEV BEV
ICEV BEV
(0.7 for (1.4 for
Chevrolet V8) Prius)
45
Power Train
46
Power Train
Motor Controller and Inverters

Controller acts as the brain of the powertrain & estimates An inverter converts DC current from a battery
how much energy needs to be supplied to the motor for the into AC current for a motor (for AC motors only)
EV to function smoothly on a road
Chain of Operations Functions
Change the speed at which the motor

rotates by adjusting the frequency of the
alternating current
Increase or decrease the power or

Acceleration Power Calculates energy torque of the motor by adjusting the
by the user estimation flow needed from amplitude of the signal
received by battery to motor
controller
47

Power Train
Key design consideration & Impact (Powertrain)

Design Category (in priority) Consideration Impact
Cost & Performance What is the number of motors to This dictates where all the wheels are driven by a single motor or different
be used? sets of wheels have different motors → creating the need for a
transmission/propeller
Performance What is the placement of the This dictates whether the motor used is at the hub (typically BLDC is
motors? Hub or Central? used) or the distribution of power from multiple motors with transmission
Cost & Performance What is the capacity of the The motor needs to be able to operate at minimal/average current
motor? without drawing high current at high power → leading to overload of the
battery
Cost & Performance Direct Current vs Alternating If using an alternating current motor, there is a need for an inverter to
Current motor? convert the battery’s direct current to alternating current
Performance How sophisticated is the High end controllers have the ability to cut off current at low speeds with
controller per the need? pulse width modulation and support regenerative braking (process by
which the motor is used as a generator to recharge the batteries when
the vehicle is slowing down) among others
Interoperability Use of communication interfaces Communication interfaces allow the vehicle to share data to external
in the controller? system which is extremely crucial in shared mobility/autonomy
applications
Power Train represents a combination of motor + controller + transmission

48

Basics of an EV
Subsection : Current outlook & Cold
start problems for EV adoption in India
State of 2022: Multiple cold start problems for EV adoption in India
Lack of good vehicles available
Given the software aspect coupled with India specific problems, a lot of R&D is required to build a good
vehicle suited for the country. This is now changing with the likes of Ather, Euler, Ola Electric bringing in
good vehicles in the market
Lack of component manufacturers
Most of the components(outside of battery pack) of an EV have a dependency on China. This makes it
harder for OEMs to claim available subsidy that requires Indian components to be used in the vehicle.
Lack of charging infrastructure
Lack of charging infrastructure leads to “range anxiety” which is more of the fear of not finding chargers
vs running out of charge → Lower Sales of EVs → Not having enough vehicles on ground → Less attractive
for infrastructure companies to setup charging
Lack of financing options
There have not been enough vehicles sold to create a secondary market which would have created
enough data for the underwriters to understand and quantify risk
50

2023
Cold Start Problem 1: State of EV brands in India

Over the last year, availability of good vehicles have been solved for with the rise in the number of OEMs across all the categories
Ola Okinawa Hero Electric

Ampere Ather TVS Piaggio Omega Seiki
TATA Motors MG Motors Others
Bajaj Auto Pur Energy Revolt Mahindra E Royce
Hyundai BYD Kia
Others Jitendra EV Being India Altigreen Atul Auto
Mahindra BMW Mercedes
Euler Others
2%
1%
7% 9%
2% 2%
18% 3%
2% 1%
4% 5% 4% 24%
10%
5% 2%
8%
17%
11%
8%
21%
82%
13% 16% 21%
2W 3W - Cargo (L3 + L5) 4W (Passenger)

Number of OEMs
100 76 15
with sales in 2022
51
2023
Cold Start Problem 2: State of components in India
PLI Schemes (Cell + AIS 156 regulation Fame 2 & Homologation

Components)
• For the OEMs to be a beneficiary of the
• Production linked incentives New battery regulations
fame 2 subsidies, they are required to
awarded to Reliance New aimed to ensure safer
use indigenised components from the
Energy, Ola Electric & Rajesh batteries, chargers and BMS
country.
Exports with an outlay of Rs avoiding fire accidents
18,100 crores ($2.26B) to
• This has further enabled the
setup cell manufacturing
development of India’s components
capabilities worth 50 GWh.
industry and multiple manufacturing
setups are established.
• Greater emphasis upon
domestic value-capture and
therefore reduction in
import dependence from
China.
With additional schemes and regulations in place, we expect the supply of key components to improve significantly
52

2023
Cold Start Problem 3: State of charging in India
Bulk of India’s charging is setup as slow charging
Currently, most charging is happening at homes or offices using private chargers
Mom & Pop CPOs are emerging but they lack a very large aggregator platform for
demand generation
Some use cases are being solved with swapping (such as 2W and e-rickshaws)
Fame 2 has reinitiated focus on fast charging infra
Charging is slowly being solved for but remains the most under-developed of all the cold start problems
53

2023
Cold Start Problem 4: State of financing in India
1. Rise of large banks such as HDFC, ICICI, Kotak already offer competitive interest rates
• IDFC First now offers interests as low as 5.99% on the purchase of Ather scooters
• This is lower than the FD interest rates offered across banks
2. With higher quality of vehicles and better components, underwriting of the vehicle is easier
Rise of new age EV first NBFCs and Fintech companies enable better access to financing options
3. Availability of on-ground operating data (powered by data connectivity and higher penetration)
allows more accurate underwriting.
Access to financing is largely solved and we see a uptick is EV purchase with this as an anchor
54
EV Value chain key personas
Responsible for the production of the Charging Usually represents individual

Cell locations such as station owner,
individual cells from raw materials like Point
Manufacturer Operator kirana shops acting as a charge point
Lithium, Cobalt, Nickel, etc
Charging
Battery Responsible for assembling the entire Represents the CPO aggregators and
Network
Assembler battery pack from all the individual Operator managers
cells along with the BMS
Responsible for putting together the Act as source of financing for the end
OEM Financier
entire vehicle along with all its HW customer
and SW components
End persona who owns the vehicle -

Vehicle
Responsible for selling the vehicles to Owner individual, fleet aggregator, logistics
Dealer the end customers company, etc
55
Current Landscape of major players in India Battery Tech / Manufacturer /
Assembler / Recycler
Financing
EV Charging/Swapping
OEMs
2 Wheelers
Mobility & Logistics

(Ride Sharing / Fleets
3 Wheelers Leasing)
Components
4 Wheelers
Bus Boat Tractor Distribution

Others
56

Software
Represents a key persona who is
impacted by the fact/
How to read next set of slides (40-46)? information 3
2 Type of fact/information OEM Customer
Shared positive
Fact 1 Negative Impact 1 Positive Impact 1 Impact across Positive Impact 1
personas
Software
Fact 2
4 Red/Green boxes show how the
persona is impacted: -vs OR +ve
1 Represents a fact/information 6
Key takeaway from the slide
All the aspects of driving such as speed, torque, direction can be controlled by a software which is very different from an ICE vehicle
which had minimal software play
5 Legend for personas, type of impact, facts

Cell
OEM Customer
Personas
Manufacturer Battery
Assembler Facts Impact +ve -ve
Dealer Charging Point Charging Network
Operator Operator Financier 57
Software
Downstream effects of EVs on the ecosystem

OEM Customer
Finding talent for
Reskilling required for
Primarily software software components is Always connected Autonomous driving
repairs and
driven a constraint for new and and on the cloud possible
maintenance
old age OEMS
Software
Ability to upsell software Increased efficiency Inputs of

Data capture w/
features is possible of every component environmental data
multiple sensors
possible
Personalized Driving
Experience
All the aspects of driving such as speed, torque, direction can be controlled by a software which is
very different from an ICE vehicle which had minimal software play
Cell
OEM Customer
Personas

Mechanical

OEM Customer
20 moving parts as Lower complexity in

compared to 200 in supply chain of Maintenance cost of
ICE components EV is low
Mechanical
Placement of Stability of the vehicles

battery pack increases with same/
reduces center of higher load
gravity
Reduced barriers to entry in the

Easy to assemble a Fragmented, local and
market (100 OEMs offering 500+
vehicle competitive market
models vs 5-7 offering 15-20)
Fewer number of components disrupts the existing ICE model of business while providing a unique
outlook to the vehicle owner
Cell
OEM Customer
Personas
Electrical, Battery

Customer
OEM
Electrical
Reduced friction on the

Constant torque of Comfortable driving
tyres -> increased 4%
motor experience
efficiency
Improved battery life via

Improved battery life Ability to perform Can fine tune the
Software controlled thermal management &
leads to better remote diagnostics and performance across
energy flow better control on
financing options repair is possible
Battery
multiple modes of driving

charging
Cells in battery Need to constantly Complex and expensive

pack degrade with monitor and maintain cooling system required
temperature temperature for fast charge
Batteries degrade with every charge cycle and innovation in this space will cause a significant
difference
Cell
OEM Customer
Personas
India - Market
Downstream effects of EVs on the ecosystem (India Specific)

OEM Customer
80% of auto sales 2Ws will have the fastest adoption in

by volume is 2Ws the market
Competitive
With subsidy TCOs are becoming
Price Sensitive pricing on the
positive leading to higher penetration of
Market cheaper models
Market
EVS
of 2W Indian market is very unique
in its own way with evolving
characteristics of the
Subsidy is reducing OEMs are running against time to Higher upfront costs customer behaviour
and will eventually not increase their gross margins to continue will inhibit higher
exist being profitable penetration
OEM economics is exposed to global

Cells are entirely commodity supply shocks making it
imported harder to maintain margins
Cell
OEM Customer
Personas
India - Environment

OEM Customer
Mechanical components
Potholes/Bumpers impact High costs of
Poor road experience increased
battery health by drawing maintenance if not
conditions stress and fatigue in
too much current treated with care
operations
Tests vehicle limits outside

Environment
Overloading is a
practise of design
Tropical Climate Disallows battery to charge

(High Temperature) at a fast rate
Damages critical
Driving conditions components if not water
are extreme protected
Indian driving conditions are extreme and unpredictable which requires OEMs to anticipate and solve for every issue making the product
development cycle very long. Batteries and mechanical components get affected the most and are tougher to perfect
Cell
Personas
OEM Customer Battery

Manufacturer
India - Charging

Charging Point
Customer Dealer OEM
Charging Network Financier
Operator Operator
Low number of "Range Anxiety" - fear of not Dealers & OEMs find it
charging points in finding chargers vs running difficult to make EV sales
India out of charge
Charging
High cost of fast Capital heavy business Requires power grid &
chargers for a CPO utility infra upgradation
Absence of common Discovery of charging

Unpredictable utilisation
platform/protocol for point is a broken
and income for a CPO
demand experience
Charging is a multi faceted chicken and egg problem
Cell
OEM Customer
Personas
India - Financing

Financier OEM Customer
Lack of Salvage value Increase the

Disallows to cost of
secondary not determined
underwrite risk
Financing
market for vehicles financing
High interest Increases TCO leading

rates to low penetration
In the absence of a secondary market, financiers need to be tech enabled to underwrite the true
salvage value of the EV (=battery)
Cell
OEM Customer
Personas
Part 2: OEM Business Models and
Opportunities
Value Chain of an OEM Business
Battery Battery
Cell Manufacturer
Swapping Charging
Financier
Mechanical Electrical Battery Captive/3rd Vehicle

Owner Secondary Market
Party Dealers
Manufacturing &
Labour
Assembly
OEM After Sales Servicing Financier
(training)
Brand Third Party

Technology Software Revenue Service
Mobility Logistics
Providers Business
Marketing &
Sales
Personal
Fleet Owners
Commute
Warranty Management
(Premium paid to insurance
company or internal
allocation)
Financier 66
Key Personas in the OEM value chain
Battery Responsible for assembling the entire Dealers Act as sales channels for the OEMs
Assembler battery pack from all the individual cells
along with the BMS
Vehicle End customer who owns the vehicle

Owner
Mechanical Responsible for sourcing of key

& electrical mechanical (drive train, chassis), electrical
components (motor, controller, electronics) Businesses who own a fleet of vehicles for
Fleet
commercial purposes - taxi, shared
Owners
mobility, logistics
Battery
Responsible for the assembling of Charging network for management of
Manufacturing Charging
multiple components and manufacturing plug-in chargers
& Assembly Operator
(if any)
Battery
Act as source of financing for the OEM to Swapping Network for management of battery
Financier
finance its capex, opex and R&D Operator swapping locations/stations
67
Types of OEMs
Vertically Integrated (~iOS) Open Architecture (~Android)

Key Functions Owner Key Functions Owner
Battery Design & Battery Design &
Assembly Assembly
Mechanical Design & Mechanical Design &
Assembly Assembly
Electrical design & Electrical design &
assembly assembly ODM
Software Software
IN-HOUSE
Assembling Assembling
Distribution Distribution
IN
Sales & Marketing Sales & Marketing HOUSE
After Sales Services After Sales Services
Examples Examples
68
Use of Open Architecture: CKD (Completely Knocked Down)
Assembler
Parts sourced from multiple Vehicle assembled in the Sales, Marketing, Distribution
suppliers across locations country/state of sales and Service done locally
● This is the most used strategy by OEMs when entering a new geography.
● It allows for easy transport of the components from multiple locations.
● Assembling in the selling country allows for reduction in excise duty and hence increased profit margins.
● In EVs, most of these components are sourced from China, South Korea, Taiwan and Japan.
● Local component manufacturers will be able to supply a few of the components as well. 69

Key Challenges of being an open architecture OEM
Necessitates a set of reliable ODM players (Eg: Robert Bosch). And subsequently needs high order volumes
Need to have a shrewd commercial & supply chain mindset
Need to have a great understanding of the end customer
Limited product differentiation requires building a great brand → resulting in high upfront marketing costs
Need to be agile with customer targeting strategies → which requires ability to run multiple vertical experiments
70
Vertically Integrated OEM
Design of the vehicle and Some parts co developed Sales, Marketing,

Vehicle manufactured
its components or made to order from Distribution and
& assembled in-house
including software multiple suppliers across Service done locally
locations
71
 
 
 
 
Key Challenges of being a vertically Integrated OEM
Need access to manufacturing & assembly facilities of their choice OR high capital base to build one
Need to ensure reliable & stable supply of components
Lack of high quality, inter disciplinary talent across battery, software and telematics
Need to have innovative low cost distribution strategy to reach the end customer
Need to have good engagement strategies for after sales services to fulfil value and build a brand
72

What makes an OEM win? (Light Vehicles - 2W)

Ability to engage with customers, generate demand, have high
recall and sustain loyalty
Brand
Ability to distribute the products Ability to provide the best after

in the most efficient way by service with high NPS will
maximising reach with lowest enable to have maximum
costs customer satisfaction
Distribution Afterservice
73
3 things that make an OEM win (Light Vehicles - 2W)
1. Brand:
Ability to engage with customers, generate demand, have high recall and sustain loyalty
a. Most iconic brands in auto have been created over decades and are known for high quality and performance.
However, brand advantage of ICEs has not been seen as being automatically transferable to EVs.
b. Given EVs are likely to have many brands and models, the power of a dealer is going to be significantly higher
than for an ICE.
2. Distribution:
Ability to distribute the products in the most efficient way by maximising reach with lowest costs
a. With online first approach, there is immense potential and competition for any new OEM to establish its
presence in the market.
b. Being able to reach the right customers in the fastest way while keeping low costs acts as a differentiator.
3. Afterservice:
Ability to provide the best after service with high NPS will enable maximum customer satisfaction
a. Given EVs are new to the market, operate in a software native world, have non standard battery and India as the
user makes the switch, s/he expects the OEM to overdeliver on their promise.
b. After service of EVs become one of the most important metrics on which any buyer will rate the OEM impacting
its NPS. Any OEM able to outperform on the the after service of the vehicles will be a clear winner (even at the
cost of high end EVs).
74
 

What makes an OEM win? (Heavy Vehicles - 3W, 4W)

Ability to understand consumer needs sharply and deeply and
capability to convert this into a product spec/design
Product
Ability to produce vehicles with Ability to engage with

the highest quality expected by customers, generate demand,
a customer and at the least cost have high recall and sustain
loyalty
Manufacturing Brand
75
3 things that make an OEM win (Heavy Vehicles - 3W,4W)
1. Product:
Ability to understand consumer needs sharply and deeply and capability to convert this into a product spec/
design
a. Various use cases exists and new ones keep getting created. Understanding them is a superpower.
b. An EV is a technically complex product - to tie all ends together one needs to have deep capability to convert a
use case into a design.
c. With experience and platformization a proven platform can be extended into multiple products leading to faster
times to market.
2. Manufacturing:
Ability to produce vehicles with the highest quality expected by a customer and at the least cost
a. EVs require fewer moving parts for which the assembly lines are very short. Hence there is no inherent
advantage of having deep pockets as long assembly lines are not required.
b. The advantages on procurement, supply chain management and distribution due to higher scale still accrue to
a larger OEM.
3. Brand:
Ability to engage with customers, generate demand, have high recall and sustain loyalty
a. Most iconic brands in auto have been created over decades and they always mean high quality and
performance. However, brand advantage of ICEs is not automatically transferable to EVs.
b. Given EVs are likely to have many brands and models, the power of a dealer is going to be significantly higher
than ICEs. 76

 
 

How does the OEM business look like in 2026?

1. Auto components will be available
2. Battery supply will be smoother
3. Charging/Swapping will be abundant
1. Easy to build an OEM business 4. Increased awareness of consumers
1. Well designed kits will be available
2. Commoditised EV models and 2. Efficiencies of scale in manufacturing will be
offerings accomplished
3. Differentiation based on brand 3. Testing & reliability of product will largely be
Mature
and distribution proven
Ecosystem
4. Capacities would exist to build out 1000s of
vehicles in short amount of time
100s of OEMs focussed on a

product-market segment 1
5 2
Tested ODM Kits
Available
High Adoption, High
Penetration and High
Acceptability
3
1. Will be able to pick from the
available kits
2. Products will be created on
4
top of the ODM kits High throughput product
3. OEMs will become design & Barriers to entry for OEM development → 6 months from start to
distribution players launch of a product
very low
77
OEM Business Models

Subsection: Personas in an OEM Value
Chain
Manufacturing & Assembly
Key Business Models

Responsible for the Brand Revenue
Manufacturing assembling of multiple Financier
& Assembly components and Captive
Vehicle Owner
Dealers
manufacturing (if any)
Marketing & Logistics
OEM Fleet Owners
Sales Business
From an OEM’s perspective, this function can either

Mobility
be Solutions
Oversourced
1. Outsourced Vehicle After Sales
2. In-house (training)
1 When outsourced, there is limited play for an 2 Theoretically, it is possible to outsource completely but practically, it
OEM to have control of the make of the EV and is difficult to do except for a few parts such as batteries, power train
most of the effort goes into the business side - and electronics.
financing, marketing, sales allowing for different
business models such as charging network, Even outsourced assemblers shall require either long term volume
shared mobility, logistics, etc commitment or investment into machines that make the BIW.
Key Examples: In-house capabilities give immense control and allow for the OEM to
be able to make key decisions and innovations by having R&D in-
house.
79

Dealers
Key Business Models

2 Single Brand Dealers are economical and
Dealers Act as sales channels for the OEMs useful in the following scenarios:
●OEM is a large established brand

●OEM has a significant market share
A dealer can be of the following types: ●High margins promised to dealers
1. Offline multi Brand Dealer ●Owned by the OEM
2. Offline single Brand Dealer
3. Online dealer
Examples:
1 It is going to be a common sight to see a dealer selling EVs of 3 In the new age distribution model and with a
multiple brands.
more full stack approach taken by OEMs, there
This is driven by the following reasons: is an increased amount of dealership being
taken online which allows for cheaper lead
● Hundreds of EV models from hundreds of OEMs will generation and a more customized & controlled
require consolidation of dealer outlets. experience for a vehicle owner.
● Every model of an EV will be a best fit for a specific use

case and will target a specific population segment Examples:
requiring a dealer to have multiple SKUs in display.
80

Case Study
Tesla’s Gross Margins are 27% vs 20% of Toyota vs 17% of Ford

Tesla 2022
In USD millions Ford Toyota
REVENUES
2022 2022
Automotive sales 81,462
Energy generation and storage 3,240 Automotive Revenue $ 1,58,000 $ 2,71,600
Services and other 2,290 Cost of Sales $ 1,34,400 $ 2,26,130
Gross Margin 17.56% 20.11%

COST OF REVENUES
Automotive sales 60,609
Energy generation and storage 1610
Services and other 910 Impact of high margins on revenue multiples
Gross profit 27.43% EV/Gross EV/Net

2022 EV/EBITDA EV/Revenue
Automotive sales 25.6% Profit Margin
Energy generation and storage 50.31% Tesla 28.98 23.54 34.93 5.71
Services and other 60.26% Ford 8.5 8.556 84.24 0.89
In USD millions 81
Case Study
Why are Tesla’s gross margins so high?

Strategic Sourcing Lower Labour Costs Zero Advertisement Costs
● Tesla's direct ties with chip suppliers ● High degree of automation that exists ● Tesla does not spend any money on
allowed it to move faster than in the factories leads to lower advertising for its products.
traditional automakers, which rely requirement of man power and ● This allows it to save a lot of promotion
on tier 1 suppliers who have impacts margins money for sales & marketing.
relationships with chipmakers.
● Tesla appears to better forecast Labour ($ per car) Advertising ($B)
demand than businesses that Tesla 2670 Tesla 0
produce many more cars than it Ford 4.4
does giving it stronger muscle Ford 2823
power on bargains and price GM 2951
GM 3.8
fluctuations for key components to
be sourced globally. ● This additionally adds more bottom
● Tesla spends 10-20% lower on labour margins to the business allowing it to
● When Tesla couldn’t get the chips it
per car compared to incumbent OEMs trade at a higher multiple
had counted on, it took the ones
that were available and rewrote the Carbon Credits
software that operated them to suit Brand Premium
its needs. Larger auto companies ● Tesla has been able to generate
couldn’t do that because they relied ● A direct to consumer approach has additional revenue by selling carbon
on outside suppliers for much of helped Tesla to build a premium credits. It made $1.78B in 2022 alone.
their software and computing brand.
expertise. ● Due to the brand Tesla has created, it (in $ M) 2022 2021 2020 2019
● Through strategic sourcing, Tesla is able to command a premium on CC
has managed to create 10% cost the price of its cars as well. 1780 1465 1580 594
revenue
benefits vis-à-vis other competitors. 82

OEM Business Models

Subsection: Auto Component Business
Battery Assembler
Value chain
Cell Secondary Battery
Labour
Manufacturer Market Swapper
Leasing Agency
Battery
Assembly Line
Assembler
OEM
Technology
BMS
84
Battery Assembler
Key Business Models on the output side
Battery
Responsible to assemble the entire
battery pack from all the individual
1 A leasing agency would underwrite the salvage value of the
Assembler cells along with the BMS
battery and typically leases it for 3 years assuming 1000
charge cycles.
The leasing agency would also have to understand the

There are 2 business models for the battery assembler technical complexities of the battery to determine its
1. Leasing to an agency to further lease it out to accurate life cycle to make the most amount of money
a. Battery Swapping Operator without defaulting.
b. OEMs
2. Directly working w/ OEMs to provide battery pack/ 2 OEMs may directly work with battery assemblers to source
software battery packs.
Key Metrics Impacting margins This maybe hybrid with them picking up off-the-shelf packs
or jointly co-developing the battery pack to suit the needs
1. Defect rate of cells of the vehicle.
2. Number of charge cycles without deterioration
3. Charging cycle time An OEMs may also choose to engage with a cell
4. Charging cycle current (C) manufacturer to source the cells and assemble battery
packs inhouse to have complete control
85

Battery Assembler
Key Innovations on the inputs side

Responsible to assemble the entire
1 Battery Management System innovation involves being able
Battery to maximize battery efficiency with software innovations for
battery pack from all the individual
Assembler charging, energy dissipation among others
cells along with the BMS
On the input side, a battery assembler may differentiate Key Players

itself on the following fronts:
1. Battery Management System
2. Assembly and packaging innovation
3. Thermal Management/Cooling System innovation 2 Assembly and packing innovation focus on different types of
4. Cell - by chemistry type, sourcing packaging which allows for maximum utilisation with the
most volumetric efficiency impacting form factor, weight of
vehicle, etc
4 Cell is the building block of a battery pack and can
differentiate on the performance or pricing front. Key Players
Use of varied chemistry types such as organic, fuel cells,

metal ion, alternate version of Lithium ion, prevention of
dendrite formation are a few examples of innovation.Given
3 Use of advanced cooling mechanisms such as liquid cooling,
radial/axial cooling advances the battery life and acts as a key
the high cost of cells, alternate sourcing methods can
differentiator
make a sustainable business model as well
Key Players Key Players
86

Cell Manufacturer
Value Chain
● Procurement of the raw
Lithium, Cobalt, Mn, materials and investment into
Ni, Alternate technology are the most
Chemistry, Fuel Secondary important inputs
Recycler
Cells Market ● The pace at which the
technology is advancing and
the amount of money that is
Battery
Raw Materials Labour Assembler required in R&D to be able to
get the right chemistry is
challenging
● The cost to put up a factory of 1
Cell
Manufacturing GWh output is in the range of
Manufacturer
$80-150M, with PLI schemes
4-5 consortiums are emerging
OEM in India
● Outputs of the cell
Technology manufacturers feeds into
battery assembler and OEMs
(who may want to assemble
Logistics Financiers their own batteries)
87

Motor Manufacturer
Value Chain
Other Use Cases

Raw Materials Financier
Machinery Motor Manufacturer OEM
Equipment & Tools

Spare Parts
Quality & Testing
Software/Tech
ODM
88
Motor Manufacturer
Key Business Models & Input Innovations

Inputs
Motor technology has been around for centuries. A motor
manufacturer will be of either personas:
There are 2 business models for an electric motor 1.Heavily R&D focussed
manufacturer 2.Manufacturing commoditized motors
1. Sell to OEMs
2. Sell to ODMs/other appliance manufacturers Given new motor technology does not yet command a
premium in the market, it is rare to see a scaled up new
age motor company.
1 OEMs have high reliability on the sourcing of the electric 2 Given most of the current 2W EVs in India are imported
motor. It is one of the most important components
from China or have major components coming from
which also dictates the form factor and the segment of
China, there may soon be a lot of ODM kit manufacturers.
the operations.
A motor manufacturer will have tie ups with multiple
In most scenarios, a large OEM will have a strategic
ODMs to provide the required motors (IM, BLDC, PSM, etc).
partnership with a motor manufacturer to supply the
This supply will be of commoditised motors.
motors which would fit its requirements and use case.
If an ODM is able to innovate on motors, with a full stack
In some cases, an OEM may choose to co-develop a
kit they will be able to command a premium price.
motor along with the manufacturer by contributing on
the R&D side.
89

Software
Software, Data & Automation providers
Given EV is a software driven vehicle and a lot of data capture happens, there is a huge opportunity for
software first companies to integrate with the OEMs
Software Primary Use Cases
Telematics Allows to operate the vehicle virtually/over the cloud
Media/Entertainment Enhances the customer experience and opens up opportunity for

monetisation
GPS/Navigation Enhance the customer experience and allows OEMs to monetize via
ads; Planning/Optimisation
90

Data
Capture of data remains one of the biggest advantages of an EV
Data Primary Use Cases
Driver Behaviour Data Useful for insurance companies and building more customized
vehicles for a certain demographic
Vehicle Usage Data Enables to underwrite risk of the battery
Environmental Data Acts as input to the BMS to better manage charging/discharging of

the battery
91
Automation
Availability of hardware and software opens up an opportunity for multiple automation solutions to be built
on top of the existing vehicle
Automation Primary Use Cases
OTA updates Allows for OEMs to push updates to software
Diagnostics Allows for OEMs to conduct predictive maintenance and also do

advanced diagnostics over the cloud saving expenditure on
servicing
On-demand services Allows for OEMs to maximize on monetisation while enhancing the
customer experience
Security Allows for customers to have increased safety, control and security of
the vehicles; very important for fleet owners
92
Mature state of software, data and automation implementations
OTA updates, media,
Cloud processing of entertainment, control
vehicle + component + commands, external
sensors + other external communications
data; remote diagnostics Cloud storage and processing
Flow of information/data
Semiconductors to
process downstream Firmware built
data received algorithms
Flow of information/data
Onboard processors, chips, controllers
Components and
sensors to capture: Remote control of
RPM, temperature, components and
cycles, pressure, age, sensors
Components and Sensors
etc
Vehicle Data, Weather,

Remote control and
Temperature, distance,
Vehicles end use of data
time, location
93
ODM Kit Business
Value Chain
R&D
Manufacturing ODM OEM
Financier
94
ODM Kit Business
Salient Points
● Once a design is successful, an auto component manufacturer may expand the offering to become an end to end
platform provider
● Battery and Motor providers are likely to become the early adopters of this strategy
● In the next 2-3 years, a couple of ODMs based out of India will become dominant, being key suppliers to several
brand first OEMs
● ODMs will only focus on the design, engineering and manufacturing of the auto components and will own the IP
as well
● The components can be assembled by a new OEM to create a brand
● ODMs will NOT focus on branding, distribution, marketing of the end products
● Customer Service shall remain in a hybrid mode with some key pieces being owned by the ODM while the rest
owned by an OEM
95

Retrofit Kits
Value Chain
R&D Vehicles Garages
Raw
Manufacturing/ Retrofit Service
Materials/ Distribution
Assembling Kits Centers
Components
Vehicle
Owners
Financier
96
Retrofit Kits
Salient Points
● A retrofit business depends heavily on the ability of the manufacturer to design and manufacturer kits which
are certified but where the ROI is very high.
● Given retrofit requires significant changes to a vehicle there is a longer gestation to the manufacturer to train
the garages in installing and maintaining these kits.
● Like an OEM, retrofit business is also dependent on the availability of charging/swapping points.
● In many cases, a swap or a charge network operator would backward integrate and acquire a retrofit business.
● An important challenge in the business is for regulators to come up with guidelines on certification.
● Also a business opportunity for retrofit financier providers given the cost of retrofitting is likely to be as high as
100% of the price of the vehicle in the secondary market.
● In some cases the company can choose to procure existing ICE vehicles from the market and release them
back after the retrofitment
● In other cases there is a distribution strategy that needs to be deployed to reach the end customers via offline/
online/partnership channels
● Distribution via garages, service centers is key to reaching the end customer
97

Case Study
Vecmocon Case Study
Vecmocon develops deep-tech IOT enabled solutions that helps OEMs get access to synchronised
smart components for EVs.
Key Partners Innovation
OEM is able to use Vecmocon’s solutions to build a vehicle from ground up
Partnership with battery and motor manufacturers allows it to provide an integrated offering of
its controllers and BMS to OEMs.
Data-centric approach to its products captures data points, with every component monitored
to deliver the optimal driving experience which is customised, tested and proven for rugged
Indian roads.
Reduce OEMs time to market for high-performance vehicles, with a plug-and-play architecture
for producing reliable, cost-effective EVs, complete with an entire software stack for fleet
management, maintenance, and service.
98
Case Study
Business Model
Vecmocon enables an OEM to build an intelligent EV via its ODM kit and and platform-as-a-service for a
sustainable and connected future
Revenue Sources
Programmable motor controller gives control over the energy conversion process and
Motor Controller runs to transform the energy from battery to a convenient waveform based on the inputs
of the rider.
Vehicle Intelligence
VIM adds to the security and reliability of the IoT architecture built for EVs
Module
ODM Kits
Smart i-VEC enabled system is capable of measuring critical battery parameters,

Battery Management
monitoring the thermal and structural consideration, protecting it during hazardous
System events.
Displays super critical indicators for human safety, like SoC, range and faults with strong
Instrument Cluster user-friendliness and great accuracy, while consuming less power for the same.
1.2 kW smart charger for electric vehicles based on lithium-ion battery packs of 48, 60 and
EV Charger 72 volts, complying with recent government guidelines.
Platform
Algorithms for integrated components functioning; Cloud platform for analytics, OTA
Software & Platform Stack updates, software control of vehicle and other platform functions such as remote
diagnostics
99
Current Landscape of major players in India
OEMs Mobility & Logistics Components Battery Tech / Manufacturer /

(Ride Sharing / Fleets Assembler / Recycler
2 Wheelers
Leasing)
3 Wheelers
4 Wheelers
Bus Boat Tractor
100

Part 3: EV Distribution Business

Value Chain of a distribution business
Labour Digital Infra Physical Infra

Businesses
OEM Distributor Customer
Insurance
Financier
Marketing After Service Financier
Optional
102
How did the traditional ICE distribution work?
Sales After - Sales
Servicing
Investments by dealer
Manufacturers the
vehicles
Transportation
OEM Dealer Inventory
Lead generation Spare Parts

for store walk-ins
Financing Customer Warranty

Enabled by
dealer/OEM Offered by OEM
Enabled by
dealer/OEM
Insurance
103
How is the EV distribution different?
Sales After - Sales
Changing definition and

Emergence of multi expectations on servicing
Servicing
Manufacturers the brand dealers due to new breed of
Investments by dealer
vehicles vehicles
Transportation
Inventory Investments into new
OEM Dealer
equipment such as
dynamo, cell balancer, etc
100+ OEMs vs 5-10 Hybrid model of sale and

in ICE Spare Parts increased number of OEMs
Use of Online + Offline
leading to complex
Channels for sales
inventory management
Warranty Increased number of

Financing Customer
Enabled by vehicle models leading to
dealer/OEM complex spare parts
Offered by OEM
Enabled by management
dealer/OEM
Investments into charging,
Charging
RSA and financing by the
Insurance
OEMs and dealers to sell
and service vehicles
RSA
104

Impact to dealership margins in the EV era

ICE EV - Multibrand Comments
Typically OEMs are willing to give higher margins

Sales Margins 5% 8% to ensure placement
Spares and Service Margins 35% 35%
Fewer breakdown incidents as most vehicles are
Number of Vehicles new in the market and EVs having much fewer
requiring service (monthly) 800 50 parts
Each part is more expensive on an average at it
Service Revenue 1000 2000 requires replacement and not service
Total Income 6,80,000 2,75,000
Rent and utilities 2,50,000 50,000 Small format stores, usually

Manpower 1,50,000 1,20,000 Same sales efficiency - should reduce in future
Inventory Cost 2,00,000 30,000 Just in Time
Operating Profit 11.76% 27.27%

105
Summary: Macro changes in distribution businesses
EV OEMs are now moving distribution in-house to be able to control the
post sales experience compared to having multiple franchise
dealerships.
There is a drastic shift from offline to online model in the acquisition

process of the sales.
There is an increased need to invest capital into post sales services such
as charging, financing, servicing, RSA (road side assistance), amongst
others.
Conversion of single brand outlets to multi brand outlets due to

increased number of vehicle offerings and expanded customer
preferences.
106

Types of distribution model

Customer Experience
OEM’s influence on distribution
Company Operated
Opex
Customer Experience Opex Capex
Lead generation costs
Ability to scale up
Capex Lead generation costs Ability to scale up
Franchise Owned Company Owned

Capex Opex
Opex
Franchise Operated
Customer Experience
Lead generation costs Customer Experience
Lead generation costs
Ability to scale up
Ability to scale up Capex
High Medium Low 107

Types of distribution model
Upcoming model which offers multiple brands
in a single channel (online or offline) Restricted to traditional way of distribution
Single Channel
Influenced by the brand of vehicles offered Offers an offline store selling variants of single brand
Ability to convert customers is high due to Ability to reach customers is low

multiple offerings
Traditional multi brand outlets
Multi Brand Single Brand
Uses multiple channels (online + offline)
Multi Channel
Uses multiple channels (online + offline)
Able to maintain low customer acquisition costs
Able to maintain low customer acquisition costs
Ability to maintain inventory of all brands
Mostly used by new age OEMs
remains a challenge
108
Multi channel here refers to research and discovery channels

Challenges with EV distribution
Given aspects of charging, financing and servicing, building a full stack approach is key
to winning customer’s trust and delivering a great experience.
The inconvenience caused due to downtime leading to vehicle repairs in EV >>> ICE,
which requires an extremely smooth and handheld customer journey to be designed.
With the # of 2W OEMs that exist in the country, having an offline presence is not
cheap but needed for brand establishment.
After sales experience of customers is the most important journey of EV sales which is
dependent on the distribution model and can make or break the brand of an OEM.
109

Key to building a successful distribution business

The post sales journey is where most customers lose
Access to competitive financing
faith in EVs/brands/dealers and hence this remains the
remains a challenge for customers
most important experience to solve for
Owning after-sales
Financing
experience
Charging Capital Efficiency

Anxiety created due to lack of charging at Ability to own customer experience and
home inhibits customers from choosing manage the complex distribution while
one EV brand over another making good margins is not easy
110
What does an ideal distribution business look like?
1. Financing:
• One of the key reasons why the adoption of EVs have been slower than expected is due to the high cost of financing. A lack of after
market has led to high rates of interest.
• Any dealer who can offer competitive financing options (sometime cheaper than ICE interest rates) is bound to see higher conversion
of footfall to sales.
2. Charging:
• Lack of charging infrastructure remains a problem even now.
• A lot of brands/OEMs are solving for this by invested heavily into building out charging infrastructure (Eg: TATA Motors, MG, Ather, etc).
• Some brands are also tieing up with charging infrastructure providers such as Chargezone to offer an extensive charging network.
• Dealers on the other hand can tie up with charging aggregator companies (eg: ElectricPe, Bolt) to offer charging points at their
homes. While this does not solve for all the charging woes, it does provide customers with a sense of partial satisfaction.
3. Owning after sales experience:

• Most of the issues faced by EV owners is post the purchase.
• To build a trustworthy brand and to truly win the customer, a dealer will have to have go above and beyond in owning their after sales
experience. This is the most important differentiator of being an EV dealer.
• Owning this experience requires the dealer to solve for charging, financing, road side assistance (RSA), spare vehicles, call support, etc.
• Any dealer who can solve for this will be able to establish a moat in the market.
4. Capital Efficiency:
• Investing into multiple channels (online, offline), managing inventory of multiple brands and acquiring customers is not cheap.
• Any new age distribution business ideally would balance the capex and opex costs which generating good margins for the business.
• Some of this can be achieved with cheaper access to capital, strategic partnerships or just plain old quick experiments to figure out
what work and what doesn’t!
111

Part 4: Charging & Swapping

Infrastructure
Market Overview
1282 Energy Consumption in 2961 Energy to be consumed in 2023 53303 EV Energy Consumption in
TWh India GWh for EV charging GWh 2030
Total Money Spent on Money to be spent for EV Money spent for EV charging
$102B $235M $6.2B
Energy charging in 2023 in 2030
113
Energy Consumed by the vehicles
Capacity (in 2023 projected Total EV units to Total EV energy Total EV energy
Vehicle Category sales be sold in 2030 spend in 2023 spend in 2030
kWh)
2-Wheelers 3 10,44,905 1,19,71,105 $ 74.12M $ 2206.72M
3-Wheeler
9 42,288 3,47,840 $ 21.37M $ 372.20M
(Passenger+Cargo)
3W Rickshaw 3 2,23,758 8,88,742 $ 79.34M $ 1591.14M
4W (Passenger +
25 59,665 4,08,123 $ 15.76M $ 277.77M
Commercial)
4W Cargo 21 1,674 5,84,689 $ 2.43M $ 1106.80M
Bus 180 2,388 20,902 $ 42.66M $ 361.13M
114
Challenges with electricity distribution
Capacity Space Regulation
In densely populated cities, with Most of the vehicle parking

moderate adoption of EVs in 5 is on roads → friction to
years, there will be a 20% install a charging point.
increased load on the local
distribution network and it can Unbundling of power
go upto 50%. distribution yet to happen to
enable OPEN ACCESS.
Utility processes are not agile Charging points require a

enough → Ability to serve on- significant amount of land
demand capacity for fast area → mixed usage of land +
charging points (say 25kW x repurposing of existing
10000 points) does not exist. parking spots is required.
The electricity distribution system in India is not ideal to support a fast adoption of EVs in the country
115

Emerging market trends observed for charging and swapping in India
Primary Location of Charging High Demand Locations for PCS Swapping vs Plug In
Most utilized PCS(Public

Most EV owners do over 80% of Swapping is preferable only for
Charging Station) tend to be at
the charging in home and office. 2W and 3W commercial use
exits of national highways for
Preference cases.
personal vehicles.
Charging requirements for

People spend nearly 10-16 hours at Light EVs are equipped with low
personal vehicle prop up on long
home and office, which is enough range batteries and do not match
travel (>200 km) currently and
Rationale time to get enough charge for a the requirements for range and
often require a 15-30 min stop to
day to day usage (30-50 km). charge speed for daily usage in
extend the range.
commercial use case.
Manufacturers providing Level 2 Battery manufacturers/OEMs with

chargers (4 -18 kWh) for home PCS with fast charging (>22 kWh) swapping stations within the
Learning charging will be experiencing a are best positioned to suit the major metro and Tier-1 cities are in
demand surge from e-4W and needs as witnessed from Tesla’s a favorable position.
e-2W users. higher customer satisfaction score
from its superchargers.
116
Current Landscape of major players in India
EV Charging/Swapping
117
Charging & Swapping Infrastructure
Subsection: Battery Swapping
Value Chain of a Battery Swapping Network Operator
Battery
Assembler
Security &
Utility
Maintenance Financier Advertisers
Battery Swapping
Station Owner Network Operator Vehicle Owner
Real Estate Software
Aggregators
Battery
Assembler
119
Supply of Batteries
Battery
Assembler Supply: Sourcing of Batteries
Security & ● This is one of the most

Utility
Maintenance Financier important aspect of the
business which involves having
strategic tie ups with battery
assemblers.
● Given the high cost of the
Battery Swapping batteries, there is an additional
Station Owner Network Operator need for financing via operating
leases, debts, HNIs, other
sources of capital.
● Long term and strategic
Real Estate Software sourcing helps with mitigation
of risks such as supply chain
shocks.
Battery
Assembler
120

Supply of swapping stations

Battery Supply: Creation of swapping stations
Assembler
● A successful swapping network needs to
have a high density of stations to enable
Security &
Utility easy & convenient discovery by end users.
Maintenance Financier ● Creation of swapping stations can either be
○ Self Owned
○ Franchise Owned
● Network optimisation solutions to identify
most optimal locations for expansion is
Battery Swapping also crucial.
Station Owner Network Operator ● Self Owned stations would require a high
amount of capital for the land leasing,
setup and operations but enables higher
control.
Real Estate Software ● Franchise owned stations enable asset
light business but come at the risk of lower
control of operations and worse customer
experience.
● Initial setup also requires negotiating with
Battery
Assembler utility line providers for commercial and
undisrupted lines of supply.
121

Creation of demand
Demand: Vehicle Owners + Others
● Maximum utilization of a swapping station and all

Advertisers the batteries is ensured with optimal demand
generation.
● If adopting the franchise model of operations, there
is an additional responsibility and guarantee a
network operator needs to provide to ensure good
Battery Swapping business for the station owner.
Network Operator Vehicle Owner
● Generation of demand requires branding,
marketing and targeting the right vehicle users.
● Ability to generate a high demand enables to
identify and optimize the expansion strategy.
● Engagement with advertisers to generate
additional revenue pool remains a large
Aggregators opportunity.
● Engagement with aggregators to enable additional
discovery by vehicle owners is preferred when
operating an open loop.
122

Types of Swapping Network

Platform First Fleet First
Vehicles Interoperable OEM Dependent
Accessible to vehicle owners

End User Accessible to all (fleets +
of a particular OEM/Business
individuals)
Charging Stations Franchise/Owned Usually Owned
Examples
123
Challenges of building a battery swapping network
Acquisition and Operations of Swapping

Debt financing for batteries - Principal of $50M
points - 20k points
A 2kWh battery would cost $350 which will earn a A typical swapping of 100 square feet with 10
net of $ 700 in its lifetime. To build a $100M batteries will earn $5000 amount. To generate
business, 142k number of batteries need to be $100M in revenue, 20000 number of points
procured with a $50M spent. needs to be acquired and maintained.
Capex in automation to handle heavier

Non standardization of EV batteries
batteries - $150M by an OEM
Multiple form factors of batteries exist with A robot assisted swapping station would require
different weight, dimensions and ergonomics an investment of $150k. Atleast 1000s of these
disallowing for building scalable networks with will need to be laid down by an OEM for good
lack of repeatability. accessibility requiring a spend of $150M!
124
New Paradigm of Interoperability of Batteries
“Interoperability” refers to the ability of EVs to interact with a range of different chargers, for those chargers to
interact with each other and with other charging management systems, and for payments to be processed
between charging service providers operating different charging networks.
Charging Charging Payment
Batteries
Stations Network Network
Different OEMs Different batteries Different chargers Different networks Different payments
Currently IS 17017 standards outline the standards for charging network but do not have standards for
swapping. Adoption of this is an additional factor determining the actual interoperability.
125
Benefits of swapping network
1 Significant increase in earnings for a commercial use case
Before BatterySmart After BatterySmart
Income per day Rs 700 (70 KM range) Rs 1150 (115 KM range)
Other Income (Ads, etc) Rs 5
Swap Fee Rs 210 a day (3 swaps)

96% increase in earnings
when using a swappable
Battery Depreciating Cost Rs 26000 once in 9
battery vehicle
months, Rs 100/day
Battery Charging/day Rs 100
Battery Maintenance/day Rs 20
Net Earnings Rs 480 Rs 945
Increased earnings per day Rs 465
Increased earnings over 3 years Rs 4,88,250

126
Above data from user perspective of using BatterySmart network; 1 yr = 350 working days
2 Increased affordability due to significant reduction in upfront cost of the EVs
Variant 1 (Fixed Battery) 7.5kWh Rs. 3.95L

17.46 % upfront
spend savings
Variant 2 (Swappable Battery)
4.5kWh Rs. 3.26L
Piaggio Ape E-City
*Ex-Showroom Delhi 127

3 Reduced wait time for end customer leading to enhanced experience and convenience
Piaggio Ape E City Piaggio Ape E City

Model
(Fixed Battery) (Swappable Battery) ● While swapping is more preferred
Ex-Showroom Cost 3,95,000 3,26,000
for a commercial use case → it has
higher TCO when owned for an end
-Subsidy 69,000
42,000 customer for everyday use
Cost Less Subsidy 3,26,000 2,84,000
● Reduced Wait Time: The charging
Road Tax + Registration Cost 230 230
time is 5 mins vs 4-8 hours everyday
Down Payment of Vehicle 48,900 42,600
Financing Cost 3,41,107 2,97,161.44 ● Lack of charging related troubles:
Insurance Cost 22,500 22,500 Finding a charger, installing a
Battery Replacement Cost 73,738 charger, keeping track of charge are
Energy Cost 67,701 2,89,522.06 some of the many softer aspects of
Maintenance Cost 36,750 36,750 troubles arising from owning a fixed
-Salvage Value 73,817 49,560 battery vehicle
Total Cost of Ownership
5,17,110
(TCO) 6,39,203.5
Charging Time 5 mins 4-8 hours/everyday
128
Source: Internal calculations basis public information from Piaggio Ape E City’s website; All prices are in INR

Charging & Swapping Infrastructure

Subsection: Plug In Charging
Value Chain of a battery charging network
Charger/
Equipment
Manufacturer Advertisers
Security &
Utility
Maintenance
Financier
Vehicle Owner
Battery Charging
Network
OEM
Real Estate Software
Other electrical
components & Aggregators
protector
130
A network operator here refers to an entity deploying and operating multiple charging points on their own books
Charging point operator vs Aggregator vs Charging Network Operator
Charging Point
Responsibilities Aggregator Charging Network Operator
Operator
Setup of charging
Y N Y
point
Demand Generation N Y Y
Revenue Capture Most Limited Most
Real Estate Owner/

Maybe N Y
Leasor
Uptime Assurance N Maybe Y
Security Y N Y
Kirana Store, Repair

Example Shops, Pan Shops, Mom ElectricPe EESL, Chargezone
& Pop Stores, etc
131
Creating supply of charging points
Supply Side: Aggregating CPOs
● A charging network is as good as the

density and uptime of the charging
points.
● Ability to employ the right strategies
to acquire key locations is important.
● Identification, engagement,
deployment and management of
the locations become some of the
major responsibilities.
● In multiple cases, engagement with
civic authority and utility providers is
essential to deploy fast/DC chargers.
● Building the right tech infrastructure
to manage the charging points
remotely while ensuring high
uptime becomes a moat in the
business.
132

Financing of Chargers
Supply Side:Financing of Chargers
● Given the high cost of the chargers,

there is a need to have financing lines
open for the financing the chargers.
● In this case the network operator may

extend this line to the CPO or lease the
charger to the CPO on the books of the
network operator.
● Cost of leasing a land and the capex

associated with it needs to be financed
for an asset light business model
133

Catering to demand
Demand Side: Customer Engagement
Advertisers
Challenges
● Reliable, trustworthy and safe charger

● Not dense enough charging network
● Asymmetry of data across charging providers
Vehicle Owner
Expectations
Battery Charging
Network
● Access to large network
● Easily accessible, closer to existing
platforms and easy payments
● Highest uptime and service
OEM
Opportunity
Aggregators
● Advertising will become a big source
of revenue
● Cross selling of products, services,
premium offerings will increase the
margins of the business
134

Types of Charging
Public Charging Semi Public Charging Private Charging
Accessibility Open Shared but restricted Restricted

access
Public parking lots, street Apartment, Malls, Hospitals, Private Parking/
Locations parking, petrol pumps, Universities, Govt Buildings Locations
highways, metro
Owner Municipality, PSUs, Location Owner, OEMs, Vehicle Owners

CPOs CPOs
Operated by CPO/Charging Network CPO/Charging Network Individuals/Charging

Network
135

Charger Specifications
EVSE POWER RATINGS
Typical Segments
Power Level Current Type
Catered
P ≤ 7kW AC & DC E-2Ws, e-3Ws, e-cars,

Normal Power
other LCVs (up to 1
Charging
7kW < P ≤ 22kW AC & DC ton)
22kW < P ≤ 50kW DC E-cars, LCVs and

High Power
MCVs (1-6 tons)
Charging
50kW < P < 200kW DC
136
Types of Chargers in India
Charging Point Slow Charger Fast Charger
Level LAC Bharat AC-001 Bharat DC-001 Type-2 AC CHAdeMO CCS
AC or DC AC AC AC/DC AC DC DC
Power Range <3kW 10 kW 15 kW >22kW >50kW >50kW
Rated 230 230 72-200 380-480 200-1000 200-1000

Voltage(V)
Cost Rs 6500 Rs 65000 Rs 2.47L Rs 1.2L Rs 13.5L Rs 14L
Vehicles 2W, 3W, Cars 2W, 3W, Cars 2W, 3W, Cars 2W, 3W, Cars Cars and Buses Cars and Buses
137

Current Business Models in Indian Public Charging

Infrastructure
Aggregator Charging Network
Individual operator/network Controlling and operating all

Description
brought under a single umbrella locations by themselves
CAPEX
Low to Medium High
Requirement
Major Revenue Subscription fees from Operators Charging revenue from

Drivers Profit Distribution with Operators consumers
Major Cost Charging Infrastructure

Operator Acquisition Costs Investment (Complete)
Drivers
138

Aggregator Charging Stations in India

Areas of Operations*
Number of Charging
1000+ 12000+
Stations
Swapping/Plug-In Plug-In Plug-In
Vehicle Supported 2W, 3W, 4W 2W, 3W, 4W
Customers Public Public + Private
• Strategic tie up with

• Manufacture its own
OEMs, residential
chargers
apartments, real
USP • Works as both
estate companies, etc
Statiq ElectricPe Franchise and
• Free charging point
(in 3 cities) (in 1 city) Aggregator
setup
*Not all locations shown in map 139

Charging Network Operator

Areas of Operations*
Number of
400+
Charging Stations
Swapping/Plug-In Plug-In
Vehicle Supported 2W, 3W, 4W
Customers Public
• Govt. organization with a

lot of financial support
USP from states
EESL (in • Able to procure chargers
13 states) at lower rates
*Not all locations shown in map

140

Challenges for a CPO
Need for capex investment for initial charger purchase
Space requirements and constraints
Security & maintenance of the chargers and equipment
Need for dedicated transformer, additional civil works in case of fast charger setup
Ability to generate demand is dependent on the network operator unless spending on marketing
Additional operational expense such as labour, technicians in case of a large charging point
141
Perspective of various stakeholders in a charging business
Charging Point Operator Consumer
Usually a secondary source of Single point of source of information

Perspective passive income operated for charging
individually
● Automated demand generation ● Reliable, trustworthy and safe

● Good source of revenue charger
Challenges ● Easy billing and reconciliation ● Not dense enough charging
● Technical Support (Ops + network
Maintenance) ● Asymmetry of data across charging
providers
● Automated demand generation

● Access to large network
Expectations ● Good source of revenue
● Easily accessible - closer to existing
● Easy billing and reconciliation
platforms + easy payments
● Technical Support (Ops +
● Highest uptime and service
Maintenance)
142

Case Study
Log9 Materials Case Study
Log9 Materials is a deep-tech startup that develops and manufactures high-performance, long-
life, and safe battery solutions for electric vehicles (EVs), commercial fleets, and other applications.
Key Partners Innovation
A Cell-level innovation for LTO & LFP chemistry, allowing for reduction in material wastage,
costs, and temperature rise.
9X Faster Charging, Longer life and performance of Log9 Batteries
Product level innovations allow for safer battery packs with advanced thermal management
allowing for optimal battery performance with rapid charging
143
Case Study
Business Model
Log9 has unlocked multiple revenue channels by using its advanced cell innovation. This allows the
company to offer fast charging to its customers
Revenue Sources
Log9 Materials sells its battery packs to original equipment manufacturers (OEMs) and
Battery Pack fleet operators. The company's battery packs are used in electric vehicles, such as
scooters and rickshaws, as well as in stationary applications.
Log9 Materials also offers battery leasing services to businesses and individuals. The
company's battery leasing program allows customers to rent battery packs for a monthly
Battery Leasing
fee. This can be a more cost-effective option for businesses and individuals who do not
need to own their own battery packs.
Log9 Materials also offers services related to battery management and energy storage.
Battery Pack Solutions The company's products can be used to monitor and manage battery performance, and
its services can be used to design and install battery storage systems.
144
Case Study
Êxponent Case Study

Exponent Energy is an electric vehicle fast-charging startup that has developed a technology that aims to fully charge an EV in 15
minutes, much less than the regular time.
e^pack
3000 cycles of rapid charging tested
13% SoH battery degradation
e^bms
10X Voltage sensing accuracy (2mV error)
Integrated BMS with the

battery pack
e^pumps
600A of current - vital for 15-min

charging
INR 14/unit to end consumer.

145
Case Study
Innovation and Business Model Charging Time
Exponent Energy has a full stack charging solution which allows

15-minute full charge at 1-hour full charge on
its customers (fleets and individual drivers) to use their network. an e^pump any network
This is enabled by partnering with OEMs to provide a wholistic
solution of vehicle, battery and charging network to power 100%
v/s industry average of ~4 hours
flexibility in last mile.
This is one of the business models adopted by the company to

Life Cycle
allow for maximum control of the charging stack in an EV.
One of the challenges with this business model is the lead time in 3000 cycle life warranty
With 100% rapid
sales and integrating the solution with the OEM vehicle. charging
Business Impact observed: v/s industry average of ~1000 cycle life
1. Vehicle:
• Smaller Battery Pack and hence lower TCO Affordability
• Lower charging downtime and increased run time leading
to enhanced revenue potential
Unlocked 15-minute full charge on LFP cells -
making rapid charging affordable & scalable
2. Network:
• Higher utilisation of chargers v/s using LTO cells - expensive &
• Higher stickiness to the network unscalable
146

Part 5: Financing
Value chain of a financier
Lessor Vehicle Owner

Vehicle Data
Insurance
Customer Data Financier OEM
Companies
Market Data Battery Swapping Battery

Platform Assembler
Charging Point Charger

Operator Manufacturer
148
Financing Market (Vehicle Sales)
2W 3W 4W Bus Total
8.00B
8B
7B 6.24B
Financing Market (in USD)
5B 4.90B
4B 3.73B
3.22
2.63B 2.69
3B 2.25
1.75B 1.74
1B 1.16B 1.16
3.01
2.13
0.68B 0.73
1.56
0.49
0.3 1.11 0.89 1.13
0.75 0.57 0.68 0.53 0.65
0.1 0.160.12 0.140.240.29 0.190.450.37 0.25 0.47 0.31 0.41
0B
2023 2024 2025 2026 2027 2028 2029 2030
Financing here refers to the interest earned on vehicle financing; Does not include the principal cost of the vehicle; Calculated per the vehicle projections in earlier slides 149
We have reduced our projections from last year due to a drastic reduction of interest rates from 15% to as low as 8.5% and additionally a reduction in projected EV sales.
What does it take to be a financier?
Sourcing of Capital Disbursal of Funds
Raising the right capital at the right prices to be Distribution of the capital to the right borrower
able to distribute to the borrower - OEMs, via the right channels to minimize distribution
Charging Players, Vehicle Owners cost while ensuring maximum coverage
Key Responsibilities
Underwriting of Risks Collection of Funds
Estimating the risk potential of the borrower to Collection of the disbursed loan and the interest
minimize the default rates requires on-ground operations backed by tech
products
150
Underwriting
Current challenges with underwriting an EV vehicle (in asset

financing mode)
Non standardized variety of batteries and battery quality
Limited data on battery degradation
Wide variety of vehicle designs
Non established secondary market of EVs
151

Underwriting
Battery has the highest share of all the components in

an EV 2022
Some challenges with battery
• Different battery chemistries have different

performance, life cycles, degradation
(covered here)
• Battery degradation is a function of actual

application, fast vs slow charging,
ownership, value, usage and user
behaviour
• Battery packaging, cooling, BMS can

control battery degradation immensely
Source: World Electric Vehicle Journal
Ability to underwrite the battery risk is the toughest given the secondary market for EV batteries is yet to be
established - many other components have existed for >100 years
152

Underwriting
Effect of cooling system on battery degradation
Capacity vs #cycle for LFP 100Ah 1c charge and 1C discharge from 3.65-2.5V at different temperatures
Use of liquid cooling reduces the battery degradation and increases the lifetime usage and the salvage value of the battery
Source: Euler Motors

153
Underwriting
Effect of temperature on battery degradation

Battery SOH vs Time: Varying Climates
Temperate Climate Hot Climate
98%
94%
90%
SOH (%)
86%
82%
78%
74%
70%
0 4 8 12 16 20 24 28 32 36 40 44 48
Vehicle Age (in months)
Operations of the vehicle in high temperatures leads to higher degradation - a vehicle designed for China/US cannot be
expected to function the same in India
Source: Geotab Blog; DCFC - Direct Current Fast Charge; Exclusively vehicles with no DCFC use; Primarily Charge Level 2, High Use
154
Underwriting
Effect of speed of charge on battery degradation

Battery SOH vs Time: Varying DCFC Charging
Never DCFC DCFC 0-3 Times Per Month DCFC >3 Times Per Month
100%
90%
80%
70%
60%
SOH (%)
50%
40%
30%
20%
10%
0%
0 4 8 12 16 20 24 28 32 36 40 44 48
Vehicle Age (in months)
While the use of fast chargers and higher charging capacity “C” delivers immediate value to the consumer, it has a long
term impact on the battery of the vehicle
Source: Geotab Blog; DCFC - Direct Current Fast Charge; Vehicles operating exclusively in hot climates, Primary Charge Level 2; High Use
155
Underwriting
Resale Value of other components
2.27%
% change in resale value
1.13% 1.12%
0.98%
0.61% 0.55%
0.49%
0.27%
0.00%
-0.25%
-0.53%
-0.68%
-1.04%
Fair Good Very Good Excellent

Electrical Mechanical Exterior & Interior Engine
Resale Value of non battery components heavily depends on the condition and is established with ICE underwriting
Source: Derived from Orange Book Value; Resale Value was taken for Tata Nexon 2018, Base resale price INR 523099, Driven 89600 kms
156
Underwriting
Inherent advantage in EV financing
● Data of all forms and kinds is available

○ Vehicle Usage Data: This allows for the financier to understand the vehicle usage. This is very important
and useful in a fleet use case which allows to validate if the vehicle is earning enough to pay back the loan.
○ Battery Data: Capture of the charging and discharging cycles of the battery helps to understand the SOH
which allows the financier to accurately determine the second hand resale value of a battery.
○ Rider Data: This allows the financier to understand if the vehicle is being used in the right conditions by the
rider and if a cohort of riders - by job, age, geography are riskier.
● Software Controlled Vehicle

○ Given EVs are primarily software controlled (as established here) the vehicle is always being tracked
○ Functions such as START/STOP allow for the financier to have higher control over the asset in case there is
a high risk of default.
○ Geolocation boundaries, tracking also allows for complex and hybrid use cases to be financed.
Underwriting of an EV financing risk requires technical capabilities

Any financier who is able to underwrite the technology of the battery will have the lowest NPAs
157

What makes an ideal financier?
Ability to underwrite the tech of an EV will enable a Ability to distribute the loans to the right segment
financier to predict cash flows accurately of vehicle owners owning the right vehicles can
minimising non performing assets (NPA) become a differentiator
Tech Underwriting Distribution
Cheap source of
Secondary Market capital
Ability to source the cheapest capital creates
Creation or access to secondary market uniquely
room for high margins which also allows to
positions a financier to predict secondary prices and sell
offer low interest to customers
in case of NPAs helping with recovery
158
What does an ideal financier look like?
1. Tech Underwriting:
Ability to underwrite the tech of an EV will enabled a financier to predict cash flows accurately minimising non performing
assets (NPA)
a. Given EVs are software first vehicles allows for immense capture of data which can be leveraged to form accurate prediction
models - this is however not easy given the lack of EVs in the market.
b. With the changing pace of the battery technology, there is also immense risk a financier will have to model.
2. Distribution:
Ability to distribute the loans to the right segment of vehicle owners owning the right vehicles can become a differentiator
a. Ability to build distribution partnerships (platforms like Flipkart, BigBasket, Udaan, etc) will help with immediate value
generation for the vehicle financed.
b. Given there are going to be 100s of OEMs who are using Chinese kits to assemble -> choosing the right vehicle to finance
avoids dissatisfied customers who may default.
3. Cheap Source of Capital:

Ability to source the cheapest capital makes room for high margins which also allows to offer low interest to customers
a. Multiple sources of capital exists - banks, NBFCs, HNIs, DFI -> ability to get access to cheap capital allows to increase the NIMs
(net interest margins) of the business.
b. Allows for the financier to offer competitive and low interest rates to the customers.
4. Secondary Market:
Creation or access to secondary market uniquely positions a financier to predict secondary prices and sell in case of NPAs ->
helping with recovery
a. One of the biggest friction points is the lack of secondary market - any financier who is able to create a secondary market for
reuse of the batteries, components across multiple use cases will be able to command better underwriting and recover from
NPAs.
b. Access to secondary market by resale of vehicles in other countries also enables financiers to command salvage value. 159

Financing
Subsection: Mobility
Value Chain of an EV Mobility Business
Repairs & Maintenance Swapping
OEM/ Production Charging Network Operators
Accessories Providers Centers
Line
Financer Fleet Owner

Parking Hub
Operator
Software Insurer End consumer

Provider
EV Mobility
Provider
Onboarding & Manpower

Training Centers Provider
Marketing
Product
Agency
B2B Partners
Financer (Logistics/ E-commerce / Food Delivery)
Fleet Management System Provider
161
 
Macro perspective of a mobility business
While there are multiple personas involved in the value chain of a mobility business, companies that
want to build a large business would have to innovate on the following fronts:
Financial Efficiency Operational Efficiency
Most financing gets used for: Areas where operational efficiency can be
• Purchase Vehicles improved
• Setup of the charging infra • Supply of vehicles
• Maintenance of vehicles • Charging infra utilisation
• Replacement of battery and other core • Demand management
components • Extending the life of the vehicle
• Other opex costs such as parking, logistics, etc
162

Financial Efficiency
Purchase of vehicles
● Given EVs are new to the ecosystem and mobility

companies are still small in India, it becomes hard to
secure enough debt financing to cater to the 100%
demand that an operator might have.
● Financiers, on the other hand have a challenge that
the business is quite new and predicting long term
cash flow at the moment is relatively harder.
● Raising financing for buying new vehicles is also
dependent on equity base of the companies which
is small in most cases.

Financing the vehicle is the major component in TCO
163
 

Setup of charging infrastructure
● 2W
● Plug-in charging is the easiest way to solve for charging.
● Partnering with existing aggregators allows the mobility
providers to open up extensive charging networks for their Type 2 AC Charger CCS Charger
fleets. Rs 1L Rs 14L
● Battery Swapping is handy when in need of a quick range
extension.
● Setting up of battery swapping stations involves investments
into batteries, chargers and operating the network.
● Partnering with battery swapping companies can help soften
the need to setup a captive infrastructure while scaling up fast.
● 3W/4W CHAdeMO
Type 1 DC Charger
Most 3Ws and 4Ws require fast charging solutions Rs 13.5L
● Rs 2,40,000
● They additionally required a dedicated parking space to charge
● Need to upgrade grid for charging multiple cars in parallel
164

Maintenance and replacement of battery
Maintenance and battery

2W Commercial 4W - Commercial
Category 3W Cargo
- Bike (Taxi) replacement costs for a commercial
Ampere Euler hi- fleet is very high.
TATA Tigor EV
Vehicle Model Magnus EX load
Battery Life (in yrs) 2.38 3.57 5.71
Battery Capacity (in To be able to scale up a mobility
2.3 10.7 26
kWh) business, efficient management of
Battery the asset is important.
₹ 24,065.36 ₹ 1,05,200.26 ₹ 2,25,139.20
Replacement Cost
Maintenance Cost/
₹ 0.33 ₹ 0.35 ₹ 0.37
KM Ability to access cheaper sources of
Total Usage (KM) 63000 196000 224000
capital and effectively manage it can
Total Maintenance
₹ 20,790.00 ₹ 68,600.00 ₹ 82,880.00 become a moat in the business.
Cost
165

Operational Efficiency
Matching demand & supply

● Most mobility providers do not work on an aggregator model (like Uber and Ola). They may operate on
an asset light model but they still guarantee a certain SLA to their users (usually larger e-commerce
businesses).
● Given there is always a constraint of quantity and quality of supply, ability to manage demand with
supply sharply with minimal buffer is critical.

● Electric mobility providers stand to gain significantly from the fact that the vehicles generate a lot of data
and can be monitored and controlled remotely
○ Fleet Optimisation: Due to the presence of data, high efficient utilisation of fleet is possible.
○ Safety & Rewards: Data and remote monitoring allows for rewarding better drivers over others.
○ Route Optimisation: Routes can be better planned by using the data that is captured on-ground.
○ Network Optimisation: Identifying areas with high density of demand and the right points of
focus immensely helps with bridging the gap and keeping the costs low.
166

Comparing ICE vs EV mobility models

Factors
Type of Business Aggregator Full Stack + Mobility as a service

Transaction Based + Contracts + Leasing + 3P Charging/Swapping
Revenue Model Transaction Based
Fee
Data Limited Extensive - used for optimisation

Charging Infrastructure + Parking Hub + Repair & Maintenance
Ecosystem Dependence Fuel Station (ubiquitous)
Center
Use Case Passenger Mobility Passenger Mobility + Logistics
Demand Specific
Vehicle Availability High & Immediate Low & Pre informed
User Base Captive Emerging

Degrading Can be superior
Experience
(lack of control on quality of vehicle + driver) (Company owned vehicles + Full time drivers)
Travel Distance Not Restricted Restricted by charging infrastructure availability
Supply Specific
Ownership Driver Owned Company Owned/Leased in most cases
Scalability High Low given an investment on vehicles is required
Downtime Not Mandatory Mandatory for Charging
Fleet Type Demand Specific Use Specific

Higher due to fuel cost Lower due to electricity cost
Operational Cost 167
(Average INR 6-8 per Km for 4W) (Average INR 1-1.2 per Km for 4W)

 
 
Creating Ecosystem
● EVs will need planning of routes along charging
and swapping networks.
● Working with energy networks will be crucial for
mobility providers.
● Partnering with telematics players to leverage the Location Specific
Charging Repair & Maintenance
data collected will help in better network Infrastructure
optimisation.
● EVs are relatively new in the market hence
servicing and ensuring uptime is a big challenge.
● Access to maintenance service providers will
ensure higher reliability of operations.
Company Parking Hub
● When most EVs are owned by companies they

have to be parked and picked up from the
company owned parking hub.
168
 

Leveraging data & technology

Data Possible Use Cases
Driver Behaviour Data Identify, reward, prevent and punish drivers

Pushing immediate alerts and taking down vehicle in extreme cases leading better overall safety
Vehicle Usage Data Useful for tracking vehicle SOH, SOC and take preventive measures
Environmental Data Track, eliminate and repair potentially harmful vehicles
OTA updates & Diagnostics Push updates to software leading to lower upgradation cost and time
On-demand services Allows to maximize on monetisation while enhancing the customer experience
Security Allows for company and customers to have increased safety, control and security.
Telematics Allows to operate the vehicle virtually/over the cloud leading to more safety and better monitoring
Media/Entertainment Enhances the customer experience and opens up opportunity for monetisation
GPS/Navigation Enhance the customer experience and allows for route optimisation thereby leading to lower time and costs
Possible Technology
Partners for Resource
Optimisation 169

 
Part 6: EV Battery Recycling
EV Battery Recycling Value Chain
Work Force
Scrapyards Technology
Dismantlers Sourcing Disassembly Sorting Processing Purification Refining Distribution
EV Owners
Financing Labour
Government
Schemes Physical Infra Equipment
Technology
171
EV Battery Recycling chain key personas
Responsible for the production of the Responsible for categorising based on

Cell individual cells from raw materials like Sorting Experts chemistry, condition, and suitability for
Manufacturer Lithium, Cobalt, Nickel, etc different recycling processes.
Sourcing Responsible for the collection of used Responsible for supply of machinery,
batteries from different sources for further Equipment equipment, and technologies used in
Firms
sorting and processing, Suppliers battery recycling processes.
Act as source of financing for the initial Engaged in the buying of recovered
Financier Material
collection and processing of the batteries. materials from the battery recycling
Buyers
process.
172
EV Battery Lifecycle
Lifecycle
New EV
Battery
Stationary Energy
Raw Material Storage
Extraction & Battery
Processing Manufacturer
EV
Cell Refurbishment
Reuse in
case of Small % goes
Battery
under-used Refurbishing for Battery
conditions Refurbishing
Retrofitment of
ICE
Used Battery Junkyard
First Life Usecase Intermediate Process
Global Companies Second Life Usecase End Life Usecase
173
Market Size of Li-Ion batteries to exceed 63,000 tonnes by 2030
Weight
63,527
Weight of batteries (in KG tonnes)
51,694
42,447
33,758
25,388
18,832
14,310
10,840
2023 2024 2025 2026 2027 2028 2029 2030

174
Calculations based on batteries available from EVs, mobile phones and laptops
Overview - Battery Recycling
LCO
15%
Lowest economic value is from the recycling of

LFP as it only contains Lithium that too in very
small quantity. NMC
50%
Lower margins and high costs discourage
recyclers to explore LFP recycling. LFP
35%
Indian market share of battery chemistry by weight
LTO
LFP & LMO don’t contain cobalt and nickel in
LCO the electrode and generate a lower revenue
owing to the low value of recovered materials.
NMC111
LMO NMC battery recycling is expected to remain a

long-term attractive option for recyclers as it is
LFP the most pro table.
0 200 400 600 800

Economic Value Extracted from Recycling (INR/Kg)
175
Source: Internal and secondary research
fi

Overview - Battery Recycling
Comparison of different LIB Chemistries

Energy Density
Weight of diff
materials in a LIB and
Price
Annual demand for 80000

LIBs in India- 2022
Annual recycling
60000 52 Cost Life Cycle
Price per ton (in USD)
of
LIBs in India
40000
29
<1% 11 GWh 20000
13
0 10 8
5 6
Graphite Aluminium Iron Manganese Nickel Lithium Cobalt
Bar represents the weight of diff Thermal runway Max C-rate

materials in a LIB
LCO LMO NCA NMC LFP
176
Source: Internal and secondary research

Why Recycling?
It is profitable—disassembly from these products is cheaper than primary extraction activities. Reusing batteries for 2nd life
purposes drastically reduces costs.
Recycling lithium is expected to play an increasingly critical role in EV and large-scale energy storage— it is one of the key
products which provides an economic incentive for recycling.
.
At scale, recovered cobalt, nickel, manganese, and lithium products (among others) will contain higher concentrations of
the element than found in natural ores due to pre-processed raw materials.
Repurposing & reusing EV batteries could potentially supply upto 65% of stationary storage applications.
Reused batteries could be 30–70% less expensive than new counterparts by 2030.
177

Battery Recycling Tech
Mechanical Hydrometallurgical
Processing Process
Chemicals are used to dissolve the

Physical methods such as crushing and
battery and extract the valuable metals.
sieving etc. are used to separate the
The dissolved metals are extracted and
different components of the battery and
purified.
extract the valuable metals.
More environmental friendly but
Simplest and inexpensive process, but not
expensive.
as effective.
Pyrolysis Pyrometallurgical
Process Process
Thermal decomposition process used to Heat is used to break down the batteries
break down organic materials into their and extract valuable metals, in a furnace.
constituent elements. The molten metals are collected and
refined.
Used to recycle batteries by breaking
down the plastic and electrolyte Most commonly used process.
components.
Pre Treatment Treatment 178
Pyrometallurgical Processing
The batteries are first shredded into small pieces. This step is important to increase the surface
Shredding area of the battery components, which makes it easier for the heat to break them down.
Shredded batteries are heated in a furnace at upto 1400K in the absence of oxygen. The organic
Pyrolysis materials in the batteries break down, release their energy, and the metal components in the
batteries to melt and vaporise.
The molten metals are then condensed and collected. This step is important to separate the
Condensation different metals from each other.
The collected metals are then refined to remove impurities. This step is important to ensure that
Refining the metals are of high quality and can be used to make new batteries.
179
Hydrometallurgical Processing
The batteries are first shredded into small pieces to increase the surface area of the battery
Shredding components, which makes it easier for the chemicals to dissolve them.
The shredded batteries are then soaked in a solution of chemicals. The chemicals dissolve the
Soaking battery components, including the valuable metals.
The solution is then filtered to remove the solid particles. This step is important to remove any
Filtration impurities that could interfere with the extraction of the metals.
The filtered solution is then treated with a chemical like Sulphuric Acid that causes the metals
Precipitation to precipitate out of solution.
The precipitated metals are then purified to remove any impurities to ensure that the metals
Purification are of high quality and can be used to make new batteries.
180
Future of Battery Recycling
Carbo Thermal Supercritical Fluid

Processing Extraction
Involves the use of carbonaceous materials, typically in Involves the use of supercritical fluids, such as carbon
the form of carbon or graphite, as reducing agents to dioxide, to selectively extract and separate metals
facilitate the reduction of metal oxides present in the from battery materials.
battery electrodes.
This method is under development, and offers more
This method is under development, and it has the environmentally friendly approach by eliminating the
potential to be more efficient and environmentally need for harsh chemicals and reducing energy
friendly than traditional methods. consumption.
Direct Cathode Electrochemical

Recycling Processing
Directly extracting and reusing cathode materials, such Utilises electrochemical processes to selectively
as lithium, cobalt, and nickel, without the need for dissolve and recover metals from battery
extensive processing or dismantling. components.
Offers a more cost-effective method of recovering Offers high selectivity, allowing for the targeted
valuable materials from batteries, however, it is not yet recovery of valuable metals while minimising waste
clear how efficient it is on a commercial scale and energy consumption.
181

Challenges along Value Chain
Insufficient collection infrastructure, particularly in certain regions or for specific battery types, linked to ‘extraction’ centres
can hinder the effective collection and recycling of used batteries.
The existence of several types of Li-ion batteries, each with its own distinct design, makes it difficult to establish recycling
centres that could cope with the full range of Li-ion batteries currently in use.
.
Li-ion batteries intended for EVs are typically quite large, with increasingly voluminous battery packs, making disassembly
more complex and potentially riskier.
Except for cobalt and nickel, most of the other constituent materials are more costly to salvage than simply to mine directly,
making it a tedious task to promote recycling to cater to demand.
Accurate identification and sorting of various battery chemistries and types can be challenging, requiring advanced
technologies and expertise.
Supply of lithium ion batteries from mobiles and laptops is not enough to setup a large recycling facility. Also, given EVs
have been in the market for the last 4-6 yrs only, most of the batteries have not yet reached their recycling stage yet.
182
Case Study
Li-Cycle Case Study

Li-Cycle is a leading Lithium-ion battery recycling company that uses advanced processes to recover valuable materials from used batteries,
contributing to a sustainable circular economy.
The Spoke facility is where the batteries

Spoke are disassembled and sorted.
Financials
The Hub facility is where the materials
Revenue: $31M Spoke Spoke
are further processed and refined
Hub
Profit Margins: -61.61%
Operating Margin: -407% Spoke Spoke
Revenue Growth: -55% (YoY) Spoke

The company's proprietary "Spoke and
Hub" recycling process is more efficient
and environmentally friendly than
traditional methods.
The company's proprietary "Spoke and

Hub" recycling process is more efficient
and environmentally friendly than
traditional methods.
183

Case Study
Li-Cycle Tech
Li-Cycle's technology focuses on closed-loop recycling, promoting the circular economy by reducing the need for primary mining and
minimising waste
Utilises a hub-and-spoke model, where central processing hubs receive spent lithium-ion
Spoke batteries and perform initial mechanical pre-processing.
Mechanical pre-processing involves shredding and separating battery components, including

Shredding plastic casings and electronic elements, to obtain black mass.
Black mass is then subjected to a hydrometallurgical process, which employs chemical

Hub leaching to selectively dissolve and separate valuable metals like lithium, cobalt, and nickel.
The recovered materials undergo further refining and purification to meet industry
Purification specifications at the hub.
184
Case Study
Li-Cycle Operations and Partnerships
Areas of Operation
Kingston, Ontario, Key Partners

Canada
Northvolt is a Swedish battery manufacturer that is partnering
with Li-Cycle to recycle lithium-ion batteries from electric
Rochester, New York, vehicles.
United States
Umicore is a Belgian materials technology company that is
Spokes partnering to develop new products that can be made from
recycled battery materials.
Gilbert, Arizona,
United States
Vale is a Brazilian mining company that is partnering with Li-
Cycle to supply lithium ore for use in Li-Cycle's recycling process.
Bessemer,
Alabama, United Trafigura is a global commodity trading company that is
States partnering with Li-Cycle to market and sell recycled battery
materials.
Rochester, New
Hub
York, United States
185
Case Study
Key Learnings from Li-Cycle
Despite being one of the largest players in the industry, Li-Cycle still faces financial
challenges, indicating that the battery recycling industry is still evolving has has huge room
Growing Space with Scope for
for improvement.
Improvement
This also suggests there are opportunities for advancement in technology, operational
efficiency, and business models to optimise financial performance in the recycling sector.
There is massive scope for new technologies, such as carbo-thermal and other emerging
technologies underdevelopment in the space, to further enhance battery recycling.
Scope for New Technologies
These technologies can offer the potential for improved resource recovery, cost-
effectiveness and reduced environmental impacts, positively contributing to the growth of
this industry.
By fostering partnerships between industry stakeholders, battery manufacturers, recyclers

Continuous Innovation &
etc the industry can accelerate advancements in recycling technologies and also address
Collaboration
financial challenges.
186

Thank You
Arpit Agarwal | arpit@blume.vc

Venkatesh Modi | venkatesh@blume.vc

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Demystifying the Indian

Blume Ventures | Background

Capital Managed Startups Backed Key Investments

Blume Mobility Portfolio

Online used-car marketplace

Full-stack commercial EVs

Digital Auto Parts Distribution

About the authors

Arpit Agarwal Venkatesh Modi

A guide to read this report

Battery Enabled Vehicles (BEVs) are a

Types of Electric Vehicle popular in India and upcoming

Revolt RV 400 Ather 450x Yulu Dex NV

TATA Ace EV TATA Ultra Bus TATA Nexon

Category L3 L5 Car Bus

Passenger Passenger Passenger Personal

EV: Tata Tiago Long Range EV

₹14L Compared to 2022, TATA launched a

smaller car (hatchback) across

Additionally, better interest rates in

Vehicle Cost is the highest costs in the TCO of an EV

Insurance Cost Energy Cost Maintenance Salvage Value

TCO for a 4W Passenger ICE

Principal Financed Road Tax & Registration

Insurance Cost Energy Cost

Maintenance Salvage Value

TCO for a 4W Passenger EV

Energy is the highest cost in the TCO of an ICE

Insurance Cost Battery Replacement Energy Cost Maintenance

Salvage Value TCO

TCO for a 2W Passenger ICE

Principal Financed Road Tax + Registration

Downpayment Interest Cost

Insurance Cost Energy Cost

Maintenance Cost Salvage Value

TCO for a 2W Passenger EV

2-Wheeler Honda Active

3W Passenger Positive Bajaj Auto RE ₹ 8,20,029 Mahindra Treo ₹ 4,59,641 ₹ 5,77,987

3W Cargo Positive Bajaj Maxima ₹ 10,66,131 Euler hi-load ₹ 6,33,154 ₹ 8,07,367

Tata Tiago XZ Tata Tiago EV

4W Tata Tigor (CNG

Bus Negative Tata Marcopolo ₹ 3,15,03,599 PMI Electro ₹ 3,27,05,119 ₹ 3,27,05,119

2022 2023 2024 2025 2026 2027 2028 2029 2030

2022 2023 2024 2025 2026 2027 2028 2029 2030

2022 2023 2024 2025 2026 2027 2028 2029 2030

2022 2023 2024 2025 2026 2027 2028 2029 2030

2023 2024 2025 2026 2027 2028 2029 2030

2023 2024 2025 2026 2027 2028 2029 2030

2023 2024 2025 2026 2027 2028 2029 2030

Costlier to get one, cheaper to live with

Key components of an electric vehicle

Consists of multiple cells put together to

Converts electrical energy from battery to

Controller regulates the electrical energy

Power Train Converts electric current into AC/DC

Li-Ion is the mainstream for next 5 years

Source: Avendus EV 2020 report 29

BYD Blade Battery

While undergoing nail penetration tests,

Under the same conditions, a lithium

For a conventional lithium iron phosphate

BYD Blade Battery

Successfully passed the extreme strength