Nikhil Kamath asks whether India should build EVs or batteries. The answer from Chinese experts may surprise you

Nikhil Kamath asked a question to Chinese experts about India’s next big energy business: should the country build electric cars or focus on batteries? On the latest episode of People by WTF, Kamath puts that question to EnerVenue CEO Henning Rath and HiNa Battery Executive Chairman Kun Tang. Their discussion takes an unexpected turn, pointing away from conventional lithium batteries and towards alternatives such as sodium-ion technology, while also examining what India would need to build a battery industry with less dependence on China.


Why lithium batteries are raising safety questions
Lithium-iron-phosphate, or LFP, batteries have become a major part of the global electric vehicle industry. They are used by companies including Tesla and BYD, but their safety record remains a concern.



Rath explains the concept of “thermal runaway”, where a battery reaches a temperature at which its internal reaction becomes self-accelerating and cannot be stopped. Tang then points to a striking figure: more than 14,000 LFP battery fires were recorded around the world in 2025.

Also Read: Book recommendations by Nikhil Kamath

“The higher the energy, the more safety issues,” Tang says. “The energy is like water in a pump, but the tube is thin. That's easy to break.”

The problem, according to Tang, is not simply about battery chemistry. He says safety incidents are heavily concentrated among smaller, tier-two Chinese manufacturers, while companies such as CATL and BYD charge more because of tighter production quality.

Sodium-ion batteries enter the conversation
The discussion then moves beyond lithium. Tang's company has already supplied what it describes as the world's first 100-megawatt-hour sodium-ion storage project. He argues that sodium costs roughly one-tenth as much as lithium and can avoid thermal runaway at current energy densities.

Another attraction is the availability of the materials involved. Sodium-ion batteries can use sodium, iron and phosphate, materials that countries can potentially source domestically rather than relying heavily on lithium.

There is a trade-off. Sodium-ion batteries currently have lower energy density than lithium batteries. That makes them less suited to long-range electric cars, but Tang sees potential in grid storage and shorter-range vehicles such as scooters and three-wheelers.

That distinction becomes important when the discussion turns to India.


Another alternative comes from nickel
Rath's EnerVenue explained a different approach. The company is working with a nickel-based battery that uses a water electrolyte. The technology was adapted from a system once used by NASA. Its aims to reduce the fire risk associated with the components that can trigger thermal runaway. The batteries are also rated for 30,000 charge cycles.

But there is a limitation: the technology is currently meant for stationary energy storage rather than vehicles. The two guests presented different alternatives to conventional lithium batteries. One is based on sodium, while the other uses nickel and a water electrolyte.


Why solid-state batteries are still some way off
Solid-state batteries are often described as the next major step after lithium-ion technology. But Rath and Tang are not convinced that they are ready for commercial use yet. The industry uses a one-to-nine scale to measure technological readiness. Tang places solid-state batteries at about level four.

In other words, the technology may look strong in research, but commercial production is still some distance away. The discussion suggests that the next stage of the battery industry may not be about finding one technology that replaces everything else. Different chemistries could end up serving different needs.


The three forces reshaping energy
Rath sees three major “super cycles” coming together over the next decade: electrification, manufacturing and AI. All three are moving faster than supply, making energy independence increasingly important.

He argues that countries cannot afford to rely entirely on imported lithium and rare earths, particularly as globalisation increasingly gives way to regional blocs. Rath also points to 2023 as the year when renewable power combined with batteries became cheaper than fossil fuels across much of the world.

AI data centres could accelerate the shift. As their energy needs grow, they could move away from diesel backup systems and towards battery storage.


Nikhil Kamath asks: EVs or batteries?
The conversation gets personal when Kamath reveals that he is considering an entry into the energy-transition space. “After my trip in China, I want to go back to India and start a business,” Kamath says.


He then asks the guests a straightforward question: should he build an electric car company or a battery company? Rath's answer is clear: don't build the car company.


Instead, he suggests building a battery business that is not tied to lithium or rare earths. India's scooter and three-wheeler market, he argues, could provide a natural starting point for sodium-ion technology.


Rather than chasing the electric car market immediately, they point towards the battery itself, and towards a chemistry that could reduce dependence on materials that are difficult to source domestically.


What BYD's rise tells us
The conversation also looks at how BYD grew from a phone-battery company into a vertically integrated electric vehicle and battery giant in roughly a decade. Rath describes China's approach as “government venture capital”. The model involves funding dozens of companies in a particular sector and expecting only a small number to survive and ultimately dominate.

BYD and CATL are among those companies that emerged as major players. For India, the story raises a bigger question about what it would take to build a battery company from scratch and compete in an industry where manufacturing scale and supply chains are critical.

There may not be one battery for every need
The conversation ends with a broader point about where the battery industry is heading. Lithium may remain important, but sodium and nickel-based technologies could have roles of their own. Energy density, safety, cost and the intended use of a battery all influence which chemistry makes the most sense.

“No single technology will solve our problem,” Tang offers as a closing thought. “We need more different chemistry to meet different demands.”