Distribution Infrastructure Must Become More Flexible Through Energy Storage Solutions And Digitalisation

For EV users and those in logistics, battery leasing is now a new norm. But what about their concerns regarding battery life, safety, and performance? Anagh Ojha from Urja Mobility addresses these questions in a conversation with EFY’s Nitisha Dubey.

Q. How does Urja Mobility contribute to the EV sector?

A. We redefine batteries as a utility service rather than a commodity. Instead of owning the battery, customers pay only for the vehicle and use our battery on a pay-per-kilometre basis—similar to MG Windsor’s model. This makes EVs more affordable and accessible, removing a key adoption barrier.

Q. How does Urja Mobility’s smart lithium battery improve efficiency and affordability?

A. We offer a Battery-as-a-Service (BaaS) and Energy-as-a-Service (EaaS) model.The smart lithium battery comes with a five-year lifespan (250,000 km), ensuring safety, extended range, and hassle-free performance. Instead of high upfront costs, users pay a nominal ₹10,000 deposit and a pay-per-use model of ₹1.2/km. It is us who handle maintenance, replacements, and service issues, allowing drivers to focus solely on their business. By eliminating battery-related worries, this makes e-rickshaw operations cost-effective, reliable, and sustainable, driving India’s transition to clean energy. 

Q. How many batteries have you deployed in the market?

A. We established this business in November 2023, and since then, we have deployed approximately ₹800 million worth of batteries in the market. Our footprint spans multiple cities, starting from Chennai, Coimbatore, Bengaluru, Hyderabad, and Mumbai to the eastern regions of India, including Guwahati, Siliguri, and Kolkata. Additionally, we have a strong presence in northern and central India, covering Delhi, Uttar Pradesh, and even Jammu.

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Q. How does Urja Mobility cater to the diverse needs of its customers?

A. Our battery leasing solutions cater to diverse commercial delivery needs, including last-mile deliveries for food, groceries, and e-commerce, mid-level transportation from factories to hubs, and long-haul logistics using electric trucks. We also support the passenger transport sector, such as electric taxis, ride-sharing, and public transit. While the retail EV market is growing, our primary focus remains on high-usage commercial applications. Beyond EV battery leasing, we provide energy storage solutions for businesses, malls, and public infrastructure, replacing diesel generators with battery energy storage systems. In high-pollution areas like Delhi-NCR, where diesel generator restrictions are increasing, this transition is accelerating. Our pay-per-unit energy model offers a cost-effective and sustainable alternative, reducing costs from ₹25-30 per unit for diesel to ₹10-15, or even ₹7 per unit.

Q. How do you ensure the quality and performance of leased batteries over time, particularly in terms of degradation and reliability?

A. The battery management system (BMS) is the most critical component, accounting for 60 per cent of battery performance. We control the entire supply chain, sourcing high-quality cells from Europe, China, and Taiwan, ensuring optimised performance and cost. Unlike traditional Indian manufacturers who assemble imported cells, we work directly with cell manufacturers, customising battery chemistries to suit Indian conditions. Most imported cells are designed for 25°C, but Urja’s batteries are built to withstand temperatures up to 60°C, ensuring better durability. Real-time Internet of Things (IoT) monitoring and AI-driven analytics track every battery’s performance, preventing issues like overcharging and overheating. If a battery exceeds safe temperature limits, the system automatically reduces power output or cuts off supply, ensuring maximum safety and reliability.

Q. With growing competition in the battery leasing market, how does Urja Mobility attract and retain customers?

A. Urja Mobility eliminates customer anxieties by ensuring product safety, reliability, and financial flexibility. We are the only company in India offering all-risk insurance for leased batteries, with zero fire, theft, or delinquency cases so far. Unlike traditional battery manufacturers focusing on selling products, we operate on a service-based model, ensuring customers receive continuous support. If a leased battery fails, we are directly responsible for resolving the issue, unlike manufacturers who only offer warranties. This model ensures that customers face zero downtime, with a guaranteed 26 monthly operational days backed by financial commitments.

Q. How does Urja Mobility ensure environmental sustainability in battery leasing, particularly in recycling and disposal?

A. We follow a 360-degree sustainability approach, managing the entire battery lifecycle from manufacturing to recycling. Batteries have a minimum lifespan of five to eight years, with second and third-life applications. We have partnered with global recycling firms to ensure environmentally responsible disposal. Unlike traditional sellers, Urja maintains battery ownership, ensuring old batteries are returned for recycling. We are also working on water-efficient recycling technologies, having already reduced water consumption by 30 per cent, with a target of 50 per cent reduction. Additionally, 60 per cent of raw materials from recycled batteries are reintegrated into new cell production, promoting a circular economy.

Q. What makes Urja Mobility unique compared to its competitors?

A. We do not see competition in a traditional sense, as it is focused on building an ecosystem for EVs, not just selling products. Unlike competitors who enter the market as manufacturers or financiers, Urja integrates technology, supply chain management, and financial structuring. We provide white-label solutions, allowing others to join the battery leasing space using Urja’s expertise. While competitors focus on selling batteries, our service-based model ensures continuous customer engagement, guaranteeing uptime and operational efficiency. Additionally, we partner with OEMs, swapping stations, and financial institutions, positioning itself at the industry’s core rather than competing against it.

Q. How does Urja Mobility handle the operational complexity of large-scale battery leasing?

A. We maintain a service call ratio of just 0.2 per cent per year, meaning only two out of every 1000 batteries require service annually. This efficiency is achieved through a partnership-driven model. The focus is on technology, process optimisation, and customer applications while relying on specialised partners for cell manufacturing, battery assembly, and distribution. By strategically outsourcing manufacturing while retaining control over software and analytics, Urja achieves high scalability with minimal operational overhead.

Q. What do you think are the key challenges hindering EV adoption in India?

A. EV ownership comes with significant challenges compared to gasoline cars, particularly in terms of battery costs. For instance, an electric car priced at ₹1.2 million includes a battery costing ₹500,000-600,000—almost 50-60 per cent of the total price. While batteries typically last 150,000 km (around 4.5 years), replacing them later costs another ₹400,000-500,000. In contrast, petrol cars require only fuel expenses without major capital investments over 10 years.

Q. Does the absence of standardisation in the EV industry affect costs and innovation?

A. The EV industry is still evolving and lacks standardisation, unlike the automotive and home appliance sectors, 60-70 per cent of components are standardised, reducing costs. In EVs, every manufacturer designs unique products, increasing development expenses. While standardisation is needed to streamline costs, enforcing it too early may hinder innovation. Battery technology is rapidly advancing—from lead-acid to lithium—and now, emerging solutions like sodium and solid-state batteries offer greater efficiency with lower weight. Rigid standardisation could slow these advancements, shifting focus from innovation to commercial gains and limiting the best solutions for customers.

Q. What are the biggest challenges in scaling battery swapping and charging infrastructure to support leasing services?

A. India is a power-surplus country, generating enough electricity to meet demand. However, the supply gap of nearly 200 terawatt-hours exists due to transmission and distribution losses. Additionally, power generation and consumption are not always aligned, leading to wastage during peak production hours. The biggest challenge for charging infrastructure is the limited distribution infrastructure, originally designed for household consumption rather than EV charging needs. Setting up a charging station requires a minimum power supply of 30kW per location, which is difficult to obtain in tier-2 and tier-3 cities. Distribution networks need upgrades, and integrating energy storage solutions at the local level can optimise infrastructure without requiring heavy capital investments.

Q. How can the distribution infrastructure be made more flexible to support EV adoption?

A. To support EV adoption, the distribution infrastructure must become more flexible through energy storage solutions and digitalisation. Government initiatives are pushing for digitalising electric meters, transformers, LT panels, and feeders, enabling real-time monitoring and management. Urja Mobility has piloted the vehicle-to-grid (V2G) concept, which allows energy storage at the local level, ensuring stored power is available for EV charging during peak hours. Additionally, promoting solar energy generation at the household level can reduce the grid’s burden, freeing up energy for EV infrastructure. These measures will make distribution networks more efficient and capable of handling increased demand from EVs.

Q. What is Urja Mobility’s revenue model and payment cycle?

A. We offer flexible payment models based on customer earnings. For fleet operators, payments are weekly, while daily commuters like e-rickshaw drivers pay daily via QR codes. Large corporations like Amazon and Flipkart follow a monthly payment cycle to align with their financial structures. Unlike traditional financiers who enforce rigid EMI structures, Urja aligns its revenue model with the earnings of its customers, ensuring affordability and sustainability.

Q. How was Urja Mobility’s last fiscal year’s growth, and what are your expansion plans for the next few years?

A. Urja Mobility became operational in January 2024. Within just three months, the company deployed ₹40 million worth of batteries and turned profitable. In the current financial year, deployments have already reached ₹800 million, as I said, showcasing a 20x growth. By 2025, we aim to expand to ₹3 billion in battery deployments, with a long-term target of ₹10 billion within three years.