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Disgruntled China could topple India’s ambition of becoming a global hub for Electric cars:

Indian automobile sector which is preparing for a big leap towards electric-powered vehicles is getting enough patronage with the Modi government endorsing subsidies and tax reductions to revive industry to follow a fresh coarse. But the diplomatic relations with neighboring China might prove to be the greatest hurdle for the nation trying to drive clean transportation propaganda given the grime effects of air pollution in the NCR Delhi.

Lithium, the main element of Lion batteries in electric cars is scarce in India and China is the global level distributor of this main component in electric cars. India’s EV(Electric Vehicle)production will rely on imports from China of lithium chemicals used to make cathodes and battery cells, according to Jasmeet Singh Kalsi, director at Manikaran Power Ltd.

The policies of PM Modi led the NDA government were favorable to form a bouncing platform for EV industry including a $1.4 billion plan to make India a manufacturing hub for EVs and cutting taxes to spur purchases. The other source of Lithium-Australia’s supply is not enough to meet the Indian requirement of 200,000 tons of lithium hydroxide.

The declining diplomatic relation with China- the main source of Lithium, is now forelooking an unforeseen effect on the EV industry of India.


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