Powering Indian E-rickshaws: Toward Alternate Battery Technologies

The Government of India’s vehicle registration dashboard, Vahan, recorded the registration of over 18.1 lakh e-rickshaws across the country as of November 2024. E-rickshaws are seeing widespread adoption since they do not require a separate permit and are relatively more affordable as they are also backed by supportive government subsidies. A less physically taxing alternative to cycle rickshaws and a more environment-friendly alternative to internal combustion engine (ICE) three-wheelers, e-rickshaws are often the prime mode of transport in small towns and villages. E-rickshaws also offer first-and-last-mile connectivity in urban areas and are used by about 60 million daily passengers in India.

While the adoption of e-rickshaws has been quick, the quality, safety and technological advancement of the vehicle itself has been slow. E-rickshaws have mainly been operating on lead-acid batteries (LABs) since their formal introduction on Indian roads in 2010. The recent focus on electric mobility and advanced battery chemistries has led the e-rickshaw industry to explore lithium-ion batteries (LIBs), but adoption has been slow. This blog looks at the benefits and challenges of the two battery technologies and the scope for innovation.

Existing E-Rickshaw Battery Ecosystem

The battery constitutes about 30-40% of an e-rickshaw’s upfront cost and impacts performance as well as the operational cost of the vehicle. Therefore, it determines the income of the e-rickshaw driver. At present, LAB e-rickshaws account for about 90% of the market (based on numbers from Vahan dashboard and FAME II subsidy data), and LIB e-rickshaws account for the remaining 10%.

LAB e-rickshaws have been the dominant choice in the e-rickshaw market due to their low upfront cost, good resale value of the battery and ease of battery servicing. However, LABs are bulky and contribute to a lot of e-waste as they typically need replacement every year. As per a NITI Aayog report, about 90% of these End of Life (EoL) batteries were recycled informally, which is both inefficient and unsafe.

Policy measures such as subsidies under Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME II) for advanced battery technologies have enabled the gradual adoption of LIB e-rickshaws. LIBs provide higher energy density, which reduces the battery weight by almost three to four times as compared to LABs. They offer lower charging time and more charge-discharge cycles than LABs, even with deep discharge. However, the higher initial cost of an LIB – average battery pack cost per kWh for LIB is around ₹16,600 and for LAB is around ₹6,000 – is a major roadblock for e-rickshaw operators with limited finances. Additionally, LIB production requires resource-intensive materials like lithium and cobalt, raising concerns about its sustainability and environmental impact. Supply chain challenges, including limited availability and dependency on imports, also limit LIB’s scalability in the e-rickshaw market.

Alternate Battery Technology for E-Rickshaws

While LIBs have become a notable alternative to LABs in the e-rickshaws market, other battery technologies with potential e-rickshaw applications are emerging. Since e-rickshaws are low-powered EVs, they can utilize batteries with a wider range of chemistries, including those with lower energy density than LIBs. Recent collaborations and initiatives that explore the compatibility of alternate battery chemistries for three-wheelers are likely to pave the way for the development of more choices for e-rickshaws:

• IOC Phinergy Private Limited, in collaboration with Mahindra Electric, tested aluminum-air battery technology on Mahindra's Treo three-wheeler model. The technology has been demonstrated in an e-rickshaw as well. This battery uses aluminum as an energy carrier – a metal that is abundant in India and is fully recyclable and reusable with nearly 100% material recovery.
  It provides quick refueling (by replacing the aluminum plates and electrolyte) which could solve charging-related issues. This battery is also expected to be cheaper than LIBs and has the potential to carve its place in the Indian e-rickshaw battery market.

• KPIT Technologies is performing field trials using sodium-ion battery packs in electric three-wheelers. They expect sodium-ion battery packs to have lesser charging time and cost 25-30% less than LIBs, with a cycle life of 3000-6000 cycles (until 80% State of Health). However, despite sodium's abundant availability, various experts predict that initially, these batteries might not be cheaper than LIBs due to underdeveloped supply chains for sodium-ion batteries, leading to limited production and slightly higher expenses.

• Offgrid Energy Labs, a startup working on ZincGel Battery technology, is developing batteries tailored for low-powered mobility applications, specifically targeting two-wheelers and three-wheelers. This technology uses zinc-based materials and is expected to have a longer life and lower cost compared to LIBs. The startup is already piloting its battery in e-rickshaws.

Way Forward

While innovation in the e-rickshaw battery ecosystem is picking pace, commercialization and ecosystem development for newer battery chemistries is still a few years away. The following steps can be taken to encourage the development of a competitive and supportive ecosystem for alternative e-rickshaw battery technology:

• Develop a policy and technology roadmap to support the development, adoption and sustainable growth of alternative battery technologies for e-rickshaws, keeping in mind the needs and constraints of drivers.

• Coexistence of LAB and LIB (and other future battery technologies) should be encouraged to provide users with more choices as per their requirements. The incentives targeted at promoting the adoption of e-rickshaws should be battery technology-agnostic.

• Raising awareness among e-rickshaw drivers about the benefits and performance of the available battery technologies and the cost of ownership in the long run.

• Building a formal ecosystem for battery financing, particularly for advanced battery chemistries, as these may be less affordable for e-rickshaw drivers due to higher upfront costs.

Despite its role in urban and suburban transportation, the e-rickshaw battery ecosystem has seen sluggish growth in safety enhancement, innovation and availability of choices since its inception. Promising battery technology alternatives can not only further incentivize their uptake but could also address existing challenges through lower costs, better performance, reduced resource consumption, etc. Greater awareness and wider battery choices for e-rickshaws can help ensure that they remain a viable, environment friendly and cost-effective last-mile alternative for passengers across the country.