Intellectual Thoughts by Sanjay Panda


Electric vehicles ( EVs), Tesla & Lithium

 
( Pic: Tesla's web site)



Throughout modern times we have witnessed  many  advancements in technology. One  major advancement  in environmentally friendly technology is the Electric Vehicle (EV). Electric vehicles have brought about many advantages and impacts including: decreased emissions, minimal   fossil fuel usage and increased safety.
  
So what exactly a electric vehicle ( EV) is ???. EVs differ from fossil fuel-powered vehicles in that the electricity they consume can be generated from a wide range of sources, including fossil fuels, nuclear power, and renewable sources such as tidal power, solar power, and wind power or any combination of those and stored mainly in  Lithium Batteries.

The modern electric vehicle (EV)  is broadly divided into  two categories Hybrid ( and or  Plug in)  Electric Vehicles (HEVs & PHEV) and   Pure Electric Vehicles (PEVs).  HEV & PHEVs combine internal combustion engines with limited-range electric battery packs. After the battery runs out, the internal combustion engine takes over, giving the driver unlimited range as long as there is a fuel station nearby. PEVs, on the other hand, run only on battery power   &  for these battery  our  Lithium   products  are the crucial ingredients.

The PEVs are  ‘pure’ electric vehicles. Since there is no internal combustion engine (and hence, no emissions), the environmental benefits are immense. PEVs are expected to grow at a whopping 37% CAGR over the next few years and account for  3% of all global vehicles sales by 2020.  More enthusiastic estimates, predicts electric cars to completely replace  Petrol/Diesel vehicles by 2030.

Several factors are driving the growth of  EVs are:
  • Decreasing battery costs, which are expected to drop by 70% by 2015 & 90% by 2018.
  • Decreasing  Battery charging time.
  • Better cars with a range in excess of 500 KMs (Tesla Model S).
  • Innovations, such as Tesla’s electric Supercharger network.
  • Prices of solar panels, widely deployed in Tesla’s Supercharger network, which have dropped by 60% from 2011.
  • Improved safety of PEVs over   fossil fuel  vehicles. Tesla’s Model S, for instance, was recently awarded the highest ever safety rating by NHTSA, Euro NCAP.
  • Strong public perception due to environmental benefits of zero-emission PEVs.
Altogether, the tremendous growth of electric vehicles has shaken up the automobile industry and sent most manufacturers scrambling to compete with existing industry leader, Tesla.

Tesla’s Impact 

The EV industry can be broadly divided into two periods: before and after Tesla.
The EV  industry’s ambition – to create a  fully electric vehicles that could outperform cars with internal combustion engines (ICE) – was deemed too far-fetched to be worthy of serious consideration. With limited resources, incompetent technology and lack of public interest, the industry produced vehicles that were too eccentric, too incapable or too cost-prohibitive for mass-consumption.
All this changed after Tesla. Tesla’s first stab at an EV resulted in the Tesla Roadster – the fastest ever production electric car with a top speed of 125 mph and a range of 244 miles. That it could go from 0 to 60 in 3.7 seconds and looked like a  sportscar was testimony to Tesla’s engineering capabilities. More importantly, it signalled to the broader audience that EVs had arrived on the big stage. Tesla phased out the Roadster  to focus on the more consumer-friendly Model S sedan. At a base price tag of $64,000, the Model S is significantly more affordable than the Roadster. With the company expected to launch a long-awaited SUV (Model X), followed by a low-cost consumer model, expect the automobile industry to be transformed radically in the next few years.
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Tesla’s success has triggered a panic catch-up reaction among automobile majors. GM, Nissan, Ford, VW, etc are now getting into  both  PEVs and H (P)EVs at different price tags instead of  earlier offerings of limited numbers of  HEVs  only approach. With research dollars pouring into EV R&D,  we expect  further significant  technological breakthroughs in the next few years for these  Lithium  batteries.  Further wider adoption of electric cars will also reduce battery prices   significantly as economies of scale kicks in. 


Who will reign supreme in the EV market is a matter of speculation for now. Tesla’s low-cost model could be a phenomenal hit or a complete dud, or  Tesla’s competitor might go kaput on launch or VW’s Audi A3 e-Tron could hit the jackpot with its simple design and Audi brand name.  The only thing concrete for now is  whoever wins the EV race,   Its  the   Lithium producers  getting increased  attention  due to  winds of change that have gripped the entire global  automobile industry.

Evonik to Acquire Monarch Catalyst of India



Evonik Industries   to strengthen its global catalysts business, has signed an agreement with Monarch Catalyst Pvt. Ltd., India to acquire 100% of the company’s shares. The transaction is expected to close during the first half year of 2015 subjected to  regulatory approvals.


Evonik with its Business Line Catalysts is a global leader in producing specialty catalysts, custom catalysts and catalysts components for the Life Sciences & Fine Chemicals, Industrial & Petrochemical and Polyolefines market segments. This bolt-on acquisition in India with annual sales in the low double-digit million € range complements Evonik’s leading positions in activated base metal catalysts and precious metal catalysts. Monarch’s global oils & fats hydrogenation catalysts business is a broadening of the Evonik catalysts portfolio. Monarch Catalyst has about 300 employees.

Indian Budget Highlights ( FY 2015-16)



PERSONAL INCOME TAX

  •    No revision of income tax brackets.
  •  Limit of deduction of health insurance premium increased to INR 25,000 from 15,000; limit increased to  INR 30,000 from 20,000 for the elderly People.
  •  People aged above 80 and not covered by health insurance to be allowed deduction of  INR 30,000  for medical expenses.
  •  Additional deduction of  INR 25,000 for the disabled.
  •  Limit on deduction for contributions to pension fund and new pension scheme increased to 150,000  from 100,000.
  •  Additional deduction of 50,000 rupees for contribution to new pension scheme under section 80CCD.
  •  Monthly transport allowance exemption doubled to 1,600.

FISCAL DEFICIT

  • Fiscal deficit seen at 3.9 percent of GDP in 2015/16.
  • Remain committed to meeting medium term fiscal deficit target of 3 percent of  GDP. ( By FY 2017-18).

GROWTH

  • GDP growth seen at between 8 - 8.5 % y/y.
  • Expects consumer inflation to remain close to 5% by March.

REVENUES

  • Revenue deficit seen at 2.8 percent of GDP.
  • Non tax revenue seen at 2.21 trillion rupees.

MARKET REFORMS

  • Propose to merge  FMC  with SEBI.
  • Bankruptcy code to be brought by FY 2015-16.
  • Public Debt Management Agency (PDMA) bringing both external and domestic borrowings under one roof to be set up this year.
  • Proposes to introduce a public contract resolution of disputes bill.

POLICY REFORMS

  •  To enact a comprehensive new law on black money.
  •  Propose to create a social security system for  all Indians.
  •  To raise visa-on-arrival facility to 150 countries from 43.

GENERAL ANTI-AVOIDANCE RULES (GAAR).

  • Government defers rollout of anti-tax avoidance rules GAAR by two years.
  • GAAR to apply prospectively from April 1, 2017.
  • Retrospective tax provisions will be avoided.

TAXATION

  • To abolish wealth tax.
  • Replaces wealth tax with additional 2 pct surcharge on super rich.
  • Proposes to cut Corporate tax  to 25 % over next four  years from 30%.
  • Net gain from tax proposals seen at 150.68 billion rupees.
  • Expects to implement goods and services tax by April 2016.
  • To reduce custom duty on 22 items.
  • Basic custom duty on commercial vehicle doubled to 20%.
  • Proposes to increase service tax rate and education cess to 14% from 12.36 %.

IMPORT TAX

  • Import tax on iron and steel increased to 15 %from 10 %.
  • Import tax on metallurgical coke increased to 5 % from 2.5 %.
INFRASTRUCTURE

  • Investment in infrastructure will go up by 700 bln rupees in 2015/16 over last year
  • Plans to set up national investment infrastructure fund ( NIIF).
  • Ports in public sector will be encouraged to corporatize under Companies Act.
  • Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation projects.
  • 5 New  "ultra mega" power projects for 4,000 MW each to be set up.
EXPENDITURE

  •  Plan expenditure estimated at about 4.65 trillion rupees.
  • Non-plan expenditure seen at about 13.12 trillion rupees.
  • Allocates 2.46 trillion rupees for Defence.
  • Allocates 331.5 billion rupees for health sector.
SUBSIDIES
  • Food subsidy seen at 1.24 trillion rupees
  • Fertiliser subsidy seen at 729.69 billion rupees
  • Fuel subsidy seen at 300 billion rupees
  • Major subsidies estimated at 2.27 trillion rupees.