Hidden Costs of Electric Vehicles Highlighted by Zerodha Co-Founder Nithin Kamath

Zerodha co-founder Nithin Kamath is raising awareness about the concealed expenses associated with electric vehicles (EVs). He warns that while the surge in EV usage may purify urban air, it simultaneously harms ecosystems, involves child labour, and perpetuates coal-powered emissions.

In a candid post on X, Kamath posed the question of whether the global transition to EVs is genuinely sustainable or merely relocating pollution to less visible areas. He questioned, “Are we just transferring pollution from urban streets to biodiversity hotspots?”

Indonesia’s Environmental Impact

Kamath pointed out Indonesia as the world’s leading nickel producer, accusing it of “strip-mining paradise islands.” This Southeast Asian nation was responsible for 51% of the global nickel production in 2023. Mining activities on islands such as Gag and Halmahera have caused deforestation and marine pollution, endangering local ecosystems and indigenous populations.

Congo’s Child Labour Concerns

Turning his focus to Congo, where over 70% of the world’s cobalt is extracted—often through hazardous, small-scale operations employing children—Kamath remarked, “Congo destroys communities with child labour.” This statement resonated with human rights watchdogs who have reported on the forced evictions, exploitation of children, and perilous working conditions prevalent in these mining sites.

China’s Control Over the EV Supply Chain

Kamath did not hold back in his criticism of China, accusing it of monopolising the electric vehicle supply chain. He stated, “China controls the minerals that make EVs possible: 90% of rare earths, 75% of lithium, and 80% of tungsten.” While China extracts approximately 70% of the rare earth minerals, its true influence lies in the processing sector—refining over 90% of global output, predominantly powered by coal.

Kamath emphasised a critical issue, stating, “All of this is powered by coal plants,” which exposes the irony: EVs, often celebrated as environmentally friendly alternatives, are largely produced and charged through fossil fuels.

He concluded with a sobering reflection on the consequences of this transition, saying, “Cleaner streets, yes. But at the cost of dirtier oceans, shattered communities, and forgotten islands?” He lamented humanity’s tech-first approach, asserting, “Knowing us, we’ll always favour better technology over what’s better for the planet.”