4. Value Chain for Manufacture and Assembly

The EV manufacturing and assembly value chain involves multiple steps. Some parts, such as clutch/torque control, start/stop systems, pistons, spark plugs, and turbochargers, are common to both ICE and EVs. However, new EV-specific components include a power distribution module, onboard charger, battery management system, vehicle interface control module, and DC/DC converter. The most critical element is the battery, with two electrodes—cathode and anode—between which charged lithium atoms travel in lithium-ion batteries. The cathode largely dictates battery performance, cost, and environmental impact, and is predominantly produced in Asia. This chapter discusses India's progress in battery assembly and future battery manufacturing prospects. Regarding the other parts, India needs to set up an elaborate industrial base where we will have raw material suppliers at the base and then the suppliers of parts, and components for various industries higher in the value chain. Such a value chain would be self-sufficient in materials, manpower, machinery, and finances.