India’s transition to electric mobility could reduce its direct dependence on imported crude oil but will not eliminate external energy-security risks, instead shifting part of that dependence towards critical minerals, battery supply chains and electricity infrastructure, according to a study by The Energy and Resources Institute (TERI).
The study finds that electric vehicles reduce direct exposure to crude oil and LNG imports but increase dependence on battery materials and globally concentrated supply chains for lithium, cobalt, nickel and graphite. TERI said this strategic dependence is expected to remain significant as electrification expands.
The report assesses electricity, CNG, LNG, petrol and diesel across six vehicle segments and examines their performance across technical, environmental, economic, social and geopolitical parameters through 2050.
Cleaner Grid Becomes Critical To EV Transition
The study also links the environmental gains from electrification directly to the evolution of India's power system. While EVs perform favourably on operational air pollutants, their lifecycle impact remains sensitive to the electricity-generation mix, battery manufacturing and material requirements.
Under India's current electricity mix, which the report describes as predominantly coal-dependent, CNG generally records the lowest overall environmental burden across most of the vehicle categories assessed. The lifecycle analysis covers electricity and fuel production, vehicle manufacturing and operation, and end-of-life impacts rather than considering only tailpipe emissions.
Charging infrastructure is another constraint. When availability, geographical distribution and service time are considered together, the report's average infrastructure indicator ranks diesel highest, followed by petrol, CNG and EV charging. TERI notes that charging-point numbers alone do not reflect effective service capacity because charging takes substantially longer than conventional refuelling.
The report finds significant regional differences as well. Delhi and Bengaluru perform relatively strongly on EV infrastructure among the locations assessed, while Mumbai has strong conventional-fuel infrastructure but lower effective EV and CNG service capacity once accessibility and service time are considered. Lucknow, Guwahati, Dhanbad and Chamba record considerably lower effective charging capacity.
TERI recommends coordinating transport electrification with renewable-energy deployment, grid strengthening, storage, demand management and suitable charging tariffs. It also calls for battery collection, second-life applications, recycling and material recovery, alongside diversified mineral sourcing and domestic manufacturing.
The report argues that electrification therefore changes the composition of India's external dependence rather than removing it. Managing the transition will require simultaneous investment in cleaner electricity, charging infrastructure, domestic battery and mineral supply chains, recycling and alternative fuels for vehicle segments where electrification remains constrained.