Apple withdraws from Electric Vehicle manufacturing

It can have a major impact on India as well

Supply chain dominance is one of the reasons

Apple has decided to not continue with its plans to build fully autonomous Electric Vehicles (EVs). This comes as a blow comes in the ongoing climate crisis. 

Here are 2 chief reasons: 

• Supply Chain Dominance

It is to be noted that China’s dominance in the supply chain for critical minerals essential for EV production underlines the global disparity in EV adoption. With a vast majority of EVs on Chinese roads and a significant share of mineral processing occurring in China, other countries face hurdles in establishing competitive EV ecosystems.

• Apple lacks battery-manufacturing infra 

While the company has an excellent track record in software design and R&D, that is not the case when it comes to battery manufacturing and critical mineral processing, crucial components of EV production.

How India will be affected 

India’s ambitious plans for EV dominance necessitate substantial investments in R&D and manufacturing. While schemes like the Production Linked Incentive (PLI) scheme are steps in the right direction, it is also to be noted that more support is needed to localize the production of key EV components and establish a robust supply chain.