New Delhi, Dec 15 (NationPress) A recent report suggests that electric vehicle (EV) sales in India may soar to 22 million units by 2035, with EV adoption surpassing 50 percent in most vehicle categories. This remarkable growth is anticipated to be fueled by positive demand trends, enhanced supply chains, and forward-thinking regulatory frameworks that will steer India towards a more sustainable future.

KPMG India, in its analysis, pointed out that India has the potential to turn possible supply chain challenges into avenues for leading the charge in sustainable mobility.

With the rising demand for essential raw materials like lithium, nickel, cobalt, and rare earth elements, one of the major global professional services firms emphasized the necessity for India to devise strategies that bolster resilience and competitiveness in its EV sector.

Electric vehicles require six times more minerals than traditional vehicles, thus, the demand for lithium, nickel, cobalt, and rare earth elements has significant growth potential given the surge in global EV adoption.

The report indicates that over 70 percent of the global refining capacity for critical minerals is concentrated in specific regions, leading to geopolitical and trade challenges.

Simultaneously, exploring reserves in regions like Jammu and Kashmir (J&K), along with domestic processing and recycling efforts, could help reduce reliance on imports.

It was noted in the report that in this scenario, essential policies such as incentivizing domestic refining, securing long-term supply agreements, and investing in R&D for alternative materials could be crucial.

“India’s aspirations for EVs depend not only on manufacturing capabilities but also on securing the foundational raw materials. Without resilient supply chains, the transition may be postponed or jeopardized,” stated Rohan Rao, Partner, Automotive and Lead–Electric Mobility, KPMG in India.

The success of India’s EV initiative will largely depend on how effectively the nation tackles the raw material issue, as emphasized in the report.

By merging local initiatives with global partnerships, India can stabilize its supply chain, minimize vulnerabilities, and establish itself as a pioneer in sustainable mobility.

Raghavan Viswanathan, Partner, Deal Advisory, KPMG in India, remarked, “Strategic investments in exploration, refining, and recycling are crucial. India must take immediate action to forge partnerships and develop capabilities that will ensure long-term competitiveness in the global EV landscape.”