Find EV Batteries – Profit from Pakistan Today | CarTailz

Albert Einstein defined insanity as doing the same thing over and over again and expecting different results. He would probably roll in his grave to see Pakistan’s countless attempts to build internal combustion engines for vehicles domestically. However, as the auto industry continues to try to do so, two interesting things happened this month.

First, the China-Pakistan Joint Research Center on Earth Sciences has signed an agreement with China’s Tianqi Lithium to explore Pakistan for lithium deposits Friday. What does that mean? There is probably lithium in abundance. Why is that important? Lithium is one of the most important components in the manufacture of batteries for electric vehicles. What does that mean? Nothing really, because most likely we won’t be using it in any meaningful way. Why are we saying this? Because of the second interesting thing that happened in the industry this month.

Haval has introduced Pakistan’s first hybrid electric vehicle. A full 24 years after Toyota introduced the world’s first hybrid, the Prius, in 1997. Now kudos to Haval for achieving what no other company in Pakistan has been able to achieve, but we have a problem. If we just don’t produce hybrids, we won’t produce electric vehicles anytime soon. This means that we will not produce electric batteries and will miss the next big thing in the world, much like we missed the internal combustion engine completely.

To avoid shooting ourselves in the foot Benefit will go ahead and suggest that we actually attempt to export them using the Export Processing Zones. Do you remember them, anyone? That way we could hop on the bandwagon for the next big thing in the industry globally while our local sector continues to live out its hybrid escapades.

now Benefit may have chosen pugnacious words, but listen to us. First, let’s explain the meaning and interrelationship of the two events mentioned above.

Let’s look at what we waste and why

Benefit spoke to a source from the Geological Survey of Pakistan who told us on condition of anonymity that there are several sites that have been identified with potential lithium reserves. Benefit also addressed Ahsan Iqbal, the Federal Minister for Planning and Special Initiatives. Unfortunately we could not receive any comments. Luckily, his refusal suggests that there might indeed be fire in the smoke, since a flat refusal is very easy to give. More importantly, as early as 2005 Pakistan was touted as having lithium reserves based on a report from the Pakistan Bureau of Statistics.

These reserves were advertised at Chitral and Gilgit-Baltistan, but we just never got around to exploring them. Why? A mix of missing finances and the above areas that were the subject of an insurgency movement not too long ago. Most importantly, these areas of Pakistan are by no means random locations on the map. Along with Afghanistan, you are part of the Kafiristan Valley. What does that mean? Afghanistan is projected to have the largest lithium deposits in the world World. And where in Afghanistan are they? Afghanistan’s Nuristan Province is touted as a possible target. It also borders Chitral and Gilgit-Baltistan, and so it comes full circle. So let us tell you why Pakistan will waste this completely.

Haval, currently Pakistan’s most technologically advanced company, decided to build a hybrid electric vehicle instead of an electric vehicle. This is very important and very worrying. Why are we saying this? Because Sazgar, Haval’s parent company in Pakistan, has access to electric vehicles through its agreements with China’s Haval and BAIC. However, they decided against it. Why? “Pakistan is not ready for an electric car right now, but it is ready for a hybrid electric car,” says Ammar Hameed, director at Sazgar Engineering Works Benefit. Why does Hameed think this is the case?

“Electric vehicles are not possible in Pakistan because you first have to install charging points nationwide. It is currently not possible to own an electric car. They are fine for driving within a city, but you would find it difficult to travel from Lahore to Islamabad, for example. They’re adding charging stations on the freeway, but you’re going to run out of chargers as more EVs hit the streets,” Hameed said Benefit. “You have to wait half an hour to charge your car. Even with a supercharger, it takes 15-20 minutes to charge. Now imagine there are only two chargers on the freeway and you have four to five cars that need to be charged.” Hameed continued. He is not alone in his worries

“People don’t have the certainty, for example, if I’m going as a consumer to buy a vehicle, I’d like to take a train from here to Islamabad to Multan to Bahawalpur,” said Dr. Naveed Arshad, Associate Professor at LUMS Benefit. What does this lack of security mean? It means lower potential sales. What does less sales mean? Fewer companies actually want to bring electric vehicles onto the market. What does that mean now, apart from wanting to find a cheaper alternative to the E-Tron? Lack of government interest and likely future governments to come. Benefit understands that this is a blanket statement, so let’s put it in context by explaining how the government approaches industrial policy.

So why don’t we have internal combustion engines? “Engines are made in volume based on technological financial feasibility rather than a wish list. If a car has a volume of 5,000, it’s not feasible to build an engine for it,” explained Asim Ayaz, general manager of policy at the Engineering Development Board Benefit. Seems easy right? Well, that applies to electric vehicles and, more importantly, to the batteries they contain. “Electric batteries cannot be made from day one. You need to craft electric vehicles first. Once production starts for them and you have an established market for them, you will see batteries and other components being built here,” continued Ayaz. See how all of this is related and why it’s worrisome? Let’s up the ante and make it scarier.

It’s unfair to criticize Sazgar for what they did and not what they could have done because they’re so new to the market. They also need a certain volume to get into electric vehicles. How about if we rely on the established triad Toyota-Honda-Suzuki? That’s a very bad idea, and it also explains how dire the situation is.

“All three are furthest behind in the electric vehicle race. Except in China, Toyota does not offer any electric vehicles. Honda doesn’t have an electric vehicle on offer except in China and a model in Europe that they just launched. Suzuki doesn’t have an electric vehicle at all,” Naveed said Benefit. So the crux of the matter is that companies that have the scale to potentially make batteries don’t have the technology, and those that do have the technology don’t have the scale to make it feasible.

In this game of solving the chicken and egg problem, Pakistan will waste its lithium. Why do you ask? Let’s explain. Electric vehicle batteries are a mixture of base metals such as aluminum, copper and iron, precious metals such as cobalt, nickel and manganese, and elements such as graphite and lithium. Now that Pakistan didn’t have lithium, it had all the other elements. First, disclaimer, for whatever reason, there is no database for all of Pakistan’s mineral reserves. However, the State Bank of Pakistan keeps track of Pakistan’s commodities exports. Interestingly, we export aluminium, copper, iron, cobalt, nickel, manganese and graphite. Pakistan has exported all of the above minerals to some extent between FY2016 and FY2021.

We recognize that mineral exports do not necessarily equal total available reserves. However, if a material is exported, then there is a reserve of it. It’s also likely that this reserve could be very large, otherwise why would you export anything unless you had it in quantities exceeding domestic needs? Even that in a country with chronic balance of payments deficits?

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