<p>Government think tank NITI Aayog unveiled a draft of the battery-swapping policy last month and opened it up for feedback until June 5. <em>DH </em>spoke with various stakeholders in the electric vehicle ecosystem to understand how they grade the draft policy and the issues it has failed to address.</p>.<p><strong>Selling EVs without batteries</strong></p>.<p>The draft spoke about the Battery-as-a-Service (BaaS) model that will allow users to buy EVs without batteries and then sign up for battery subscription services. This will reduce EV costs as batteries account for 40-50 per cent of their price tags.</p>.<p>While Sohinder Gill, the chief executive of India’s top electric two-wheeler maker Hero Electric, agrees that battery swapping can push commercial users to be early adopters, he is sceptical about its application in the personal mobility space. </p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/with-new-platform-tata-plans-long-range-tech-enabled-global-electric-vehicles-1104981.html" target="_blank">With new platform, Tata plans long-range, tech-enabled global Electric Vehicles</a></strong></p>.<p>“For B2C users, they will need a greater density of swap stations and hence higher investments,” Gill said.</p>.<p>The option of selling EVs without batteries might hurt EV makers too.</p>.<p>“Negatives are that there are no big margins for the OEMs since it will be a standard vehicle without the battery where the business will have to be driven by volumes,” said Deloitte India Partner and Automotive Leader Rajeev Singh.</p>.<p><strong>Capital-intensive project</strong></p>.<p>The BaaS model will require a high capital outlay since the battery providers will need to keep an inventory of at least 1.4 to 1.6 times the number of batteries required in a traditional model (charging an EV with a fixed battery), Singh said.</p>.<p>Financial support from policymakers was also found wanting. Battery-swapping network provider RACEnergy‘s co-founder, Gautham Maheswaran, said that while the draft indicates subsidies for battery providers, there aren’t any for those setting up the battery-swapping infrastructure. </p>.<p>External financing support from the industry, too, is crucial.</p>.<p>“We need feasible financing solutions through banks and NBFCs so that startups and companies can set up battery swapping at scale,” said Vasudha Madhavan, founder of e-mobility focused investment bank Ostara Advisors.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/national/tesla-can-benefit-by-manufacturing-electric-vehicles-in-india-nitin-gadkari-1105794.html" target="_blank">Tesla can benefit by manufacturing electric vehicles in India: Nitin Gadkari</a></strong></p>.<p><strong>Balancing standards and innovation</strong></p>.<p>When the government first revealed its intention of introducing interoperability standards, industry players raised concerns that the standards at a nascent stage could stifle innovation. However, the draft policy has allayed those fears.</p>.<p>“Rather than mandating a rigid set of technical and operational requirements to foster interoperability, this policy will allow for multiple distinct interoperable solutions to arise, which would encourage market-led innovations,” said Chetan Maini, the co-founder of swappable-battery provider SUN Mobility.</p>.<p>Strong standards will also pave the way for safer batteries, stakeholders agreed.</p>.<p><strong>Battery safety</strong></p>.<p>The policy prescribes “rigorous testing” for swappable batteries since they will be subject to multiple coupling/decoupling processes at the connectors.</p>.<p>Hero Electric’s Gill said battery life and safety aspects could be better handled in a swap station rather than inside the e-scooters. “The swap stations can deploy pre/post charge cooling and regulated charging in a better manner,” he explained.</p>.<p>Others pointed out that the advanced battery management systems suiting Indian needs will be key to a safer e-mobility experience. </p>.<p>“Swapping a battery pack in your 2W or 3W safely is not common knowledge yet. We need to ensure on-ground training for swap station personnel and EV users to ensure no mishaps and avoid battery damage,” said Madhavan.</p>.<p>Some experts also pushed for better regulations on evolving EV technologies.</p>.<p>Sagar Mitra, an IIT Bombay professor who is researching lithium-ion cells, said separate safety norms for fast-charging batteries should be developed. </p>.<p>“In the hot climatic zone, few chemistries can sustain such a wide range of temperature. Without much thermal control, many such chemistries can be fatal during charging or handling.”</p>.<p><strong>End-of-life usage of batteries</strong></p>.<p>Mitra also warned against ignoring the huge volumes of battery waste that swapping would likely generate. </p>.<p>“One should carefully craft the policy to ensure no end-of-life batteries from BSS (battery swapping stations) are scrapped in landfills. We should monitor each battery pack and inside cells’ whereabouts after the EOL and prepare guidelines,” he said</p>.<p>While the policy talked about reusing batteries and recycling them to extract the metals, it missed out on one aspect.</p>.<p>“It doesn’t talk about the refurbishment. When certain cells in a battery don’t perform well, identification and refurbishment of those batteries by replacing those cells will be key in the battery swapping system,” Singh pointed out.</p>.<p>“There should be a more accurate policy on the cost-bearing capacity of each stakeholder, which is missing here,” Mitra added.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>
<p>Government think tank NITI Aayog unveiled a draft of the battery-swapping policy last month and opened it up for feedback until June 5. <em>DH </em>spoke with various stakeholders in the electric vehicle ecosystem to understand how they grade the draft policy and the issues it has failed to address.</p>.<p><strong>Selling EVs without batteries</strong></p>.<p>The draft spoke about the Battery-as-a-Service (BaaS) model that will allow users to buy EVs without batteries and then sign up for battery subscription services. This will reduce EV costs as batteries account for 40-50 per cent of their price tags.</p>.<p>While Sohinder Gill, the chief executive of India’s top electric two-wheeler maker Hero Electric, agrees that battery swapping can push commercial users to be early adopters, he is sceptical about its application in the personal mobility space. </p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/with-new-platform-tata-plans-long-range-tech-enabled-global-electric-vehicles-1104981.html" target="_blank">With new platform, Tata plans long-range, tech-enabled global Electric Vehicles</a></strong></p>.<p>“For B2C users, they will need a greater density of swap stations and hence higher investments,” Gill said.</p>.<p>The option of selling EVs without batteries might hurt EV makers too.</p>.<p>“Negatives are that there are no big margins for the OEMs since it will be a standard vehicle without the battery where the business will have to be driven by volumes,” said Deloitte India Partner and Automotive Leader Rajeev Singh.</p>.<p><strong>Capital-intensive project</strong></p>.<p>The BaaS model will require a high capital outlay since the battery providers will need to keep an inventory of at least 1.4 to 1.6 times the number of batteries required in a traditional model (charging an EV with a fixed battery), Singh said.</p>.<p>Financial support from policymakers was also found wanting. Battery-swapping network provider RACEnergy‘s co-founder, Gautham Maheswaran, said that while the draft indicates subsidies for battery providers, there aren’t any for those setting up the battery-swapping infrastructure. </p>.<p>External financing support from the industry, too, is crucial.</p>.<p>“We need feasible financing solutions through banks and NBFCs so that startups and companies can set up battery swapping at scale,” said Vasudha Madhavan, founder of e-mobility focused investment bank Ostara Advisors.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/national/tesla-can-benefit-by-manufacturing-electric-vehicles-in-india-nitin-gadkari-1105794.html" target="_blank">Tesla can benefit by manufacturing electric vehicles in India: Nitin Gadkari</a></strong></p>.<p><strong>Balancing standards and innovation</strong></p>.<p>When the government first revealed its intention of introducing interoperability standards, industry players raised concerns that the standards at a nascent stage could stifle innovation. However, the draft policy has allayed those fears.</p>.<p>“Rather than mandating a rigid set of technical and operational requirements to foster interoperability, this policy will allow for multiple distinct interoperable solutions to arise, which would encourage market-led innovations,” said Chetan Maini, the co-founder of swappable-battery provider SUN Mobility.</p>.<p>Strong standards will also pave the way for safer batteries, stakeholders agreed.</p>.<p><strong>Battery safety</strong></p>.<p>The policy prescribes “rigorous testing” for swappable batteries since they will be subject to multiple coupling/decoupling processes at the connectors.</p>.<p>Hero Electric’s Gill said battery life and safety aspects could be better handled in a swap station rather than inside the e-scooters. “The swap stations can deploy pre/post charge cooling and regulated charging in a better manner,” he explained.</p>.<p>Others pointed out that the advanced battery management systems suiting Indian needs will be key to a safer e-mobility experience. </p>.<p>“Swapping a battery pack in your 2W or 3W safely is not common knowledge yet. We need to ensure on-ground training for swap station personnel and EV users to ensure no mishaps and avoid battery damage,” said Madhavan.</p>.<p>Some experts also pushed for better regulations on evolving EV technologies.</p>.<p>Sagar Mitra, an IIT Bombay professor who is researching lithium-ion cells, said separate safety norms for fast-charging batteries should be developed. </p>.<p>“In the hot climatic zone, few chemistries can sustain such a wide range of temperature. Without much thermal control, many such chemistries can be fatal during charging or handling.”</p>.<p><strong>End-of-life usage of batteries</strong></p>.<p>Mitra also warned against ignoring the huge volumes of battery waste that swapping would likely generate. </p>.<p>“One should carefully craft the policy to ensure no end-of-life batteries from BSS (battery swapping stations) are scrapped in landfills. We should monitor each battery pack and inside cells’ whereabouts after the EOL and prepare guidelines,” he said</p>.<p>While the policy talked about reusing batteries and recycling them to extract the metals, it missed out on one aspect.</p>.<p>“It doesn’t talk about the refurbishment. When certain cells in a battery don’t perform well, identification and refurbishment of those batteries by replacing those cells will be key in the battery swapping system,” Singh pointed out.</p>.<p>“There should be a more accurate policy on the cost-bearing capacity of each stakeholder, which is missing here,” Mitra added.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>