Mindset Is The Biggest Challenge In Battery Transition: Piyush Goyal, Co-founder & CEO, Volks Energie

The company aims to democratise energy through solar power and batteries, making clean energy accessible. It focuses on project execution and long-term system maintenance rather than manufacturing. In an interview with ResponsibleUs, Piyush Goyal, Co-Founder and CEO, Volks Energie, discussed its collaboration with Power Grid, lithium battery recycling, extended producer responsibility, and more.

Excerpts:

Could you tell us about your collaboration with Power Grid?
Over the last few years, we have given Power Grid multiple presentations on the benefits of nickel-cadmium batteries. After extensive consultations with manufacturers and experts, they decided to gradually shift from lead-acid to VRLA batteries about a year and a half ago.

This policy change took time, involving multiple discussions and approvals. Finally, around February or March 2024, Power Grid formally decided to transition. The tendering process began in August–September, and given Power Grid’s scale, implementing this change across 600+ substations requires meticulous planning and smaller projects.

The plan is to replace lead-acid batteries with nickel-cadmium ones as replacements arise. Every few months, different substations consolidate their requirements and release tenders through Power Grid’s central processing cell. Some urgent requests come directly from regional offices.

We actively participate in these tenders, working closely with both major nickel-cadmium battery manufacturers in India. Our early engagement gives us a competitive advantage. This collaboration has helped Power Grid understand the value of transitioning to nickel-cadmium batteries — a shift now officially underway.

How does Volks Energie plan to maintain its competitive edge while bidding for tenders over the next five years?
The company expects to secure 60–70% of the work over the next quarter to five years. VRLA batteries have a lifecycle of about five years, meaning all substations will need replacements during this period. As old batteries are phased out, the demand for new ones presents a significant business opportunity. The company plans to consistently bid for tenders to meet this demand.

So far, it has participated in over six tenders across different price ranges and regions. These tenders are released once or twice a month, a trend expected to continue for the next four to five years. With only four to five competitors, the company is confident about capturing a large market share.

The company has delivered critical projects for major players in the oil, gas, and power sectors like BPCL, GAIL, and IGGL. It has maintained these systems for four to five years, sometimes longer, with dedicated service teams ensuring uptime and ongoing support. Key customers are considered invaluable, with the company taking pride in providing unwavering support whenever needed.

How are these nickel batteries different from lithium batteries?
There are different battery technologies, each with unique strengths. Lithium-ion batteries have gained a lot of attention recently, but nickel-cadmium (Ni-Cd) batteries have been around for much longer and are preferred in critical applications due to their reliability and long lifespan.

Nickel-cadmium batteries have a very high design life, making them ideal for mission-critical operations where failure isn't an option. For example, they're used in space projects, defense applications, railways, metro systems, and power plants - environments where battery reliability is crucial. In India, even Vande Bharat trains and metro projects rely on nickel-cadmium batteries. They offer stability, don't suffer from sudden failure, and require less frequent replacement, making them perfect for applications where downtime isn't acceptable.

What about lithium? The recycling ecosystem for it is still evolving, right?
Lithium recycling is still catching up. While there are initiatives working on it, we are struggling to process black mass — the material left after breaking down lithium batteries — to efficiently recover base metals at scale. But progress is happening, and as lithium battery use grows over the next two to three years, recycling will have to evolve to meet that demand.

India’s long-term goal is to reduce dependency on imports. Once lithium enters the country, the aim is to recycle and reuse it, creating a circular economy. In the next four to five years, the technology should mature enough to recover lithium, cobalt, manganese, and nickel — the main components of an LFP battery — for new applications. Other technologies like hydrogen cells are also emerging. Eventually, these technologies will either coexist to help reach net zero or one will lead the charge.

What challenges did you face in the transition from traditional batteries to nickel-cadmium batteries?
The biggest challenge is mindset. I can explain the benefits of nickel-cadmium batteries in ten to fifteen minutes, but changing people's perceptions takes much longer. Traditional lead-acid batteries have been around for ages, and people are comfortable with what they know. Convincing decision-makers to adopt new technology requires educating them about long-term reliability and environmental impact.

Another hurdle is infrastructure. While nickel-cadmium batteries offer better performance and safety, they require specific handling and integration. Setting up the right ecosystem - from procurement to maintenance - took time and effort.

Lastly, the regulatory landscape is evolving. Policies around battery disposal, EPR, and recycling are still taking shape, so navigating these changes while building sustainable practices has been a learning process. But with growing awareness and the right partnerships, we have managed to overcome these challenges and position ourselves at the forefront of this transition.

How do these batteries perform in extreme climate conditions, like in regions such as Kargil?
One key advantage of nickel-cadmium batteries is their ability to perform in extreme temperatures. They work reliably from -10°C to almost 60°C without degradation. In contrast, lead-acid batteries start failing at around 5°C, and above 45°C, their backup time reduces drastically. This makes nickel-cadmium ideal for harsh environments like Kargil.

What kind of market share do these batteries have?
These companies operate in a niche market and haven't reached retail customers, so they've largely stayed out of the spotlight. As of now, their market share in the industrial battery segment is around 10% - possibly even lower.

Are you exploring other markets as well?
We are in discussions with one of the government entity to replace their VRLA batteries with nickel-cadmium ones. They operate in remote areas with extreme temperature variations, making reliability crucial. In some projects, reaching the battery site itself is challenging. For example, in Assam, you need to take a boat across a lake to reach the installation, and in Gujarat, you must cross the Rann of Kutch's marshy lands to access some locations. In such remote locations, frequent battery replacements aren't practical, so nickel-cadmium is a more reliable solution.

Since Volks Energie started, how many projects have you completed?
I don't have the exact number, but we shifted our focus toward nickel-cadmium batteries around 2021. Initially, we worked on solar rooftop projects and mega solar installations. We also have a division dedicated to sustainable air conditioning. Right now, I'm handling the DC power systems and solar segments, working both on expanding the market and delivering ongoing projects.

What are some technological innovations Volks Energie is bringing to the energy storage sector?
Our biggest innovation lies in working with multiple battery technologies - LFP, nickel-cadmium, and lead-acid - and ensuring they are applied based on project-specific requirements. For example, we are currently collaborating with BPCL on a project that involves installing solar batteries along their pipeline. This is their first time experimenting with such technology, and we're ensuring fire safety, timely project execution, and adherence to high-quality standards. Additionally, we're providing a 10-year Annual Maintenance Contract (AMC) to ensure long-term performance.

We are also working closely with LFP battery manufacturers and fire suppression system providers to integrate safety measures, especially in sensitive environments like oil and gas installations where fire risks cannot be ignored. Our focus is on delivering not just technology but also reliability, safety, and efficiency, so our customers know that with Folk Energy, they are in safe hands.

How is Volks Energie contributing to the circular economy?
While we aren't directly involved in battery recycling yet, we ensure responsible handling of used batteries. Whenever we replace lead-acid batteries, we take them back and sell them only to Pollution Control Board-approved vendors for proper recycling. This prevents these batteries from ending up in the unorganized sector and ensures compliance with environmental norms. Our contribution lies in maintaining a clean, accountable chain of battery disposal and replacement, aligning with circular economy principles.

Will we be able to survive without coal production?
What has happened on the ground in the last 10 years aligns with that. India is growing at a rapid pace, and to support this growth, we'll need energy - not just to fulfill today's demand but to meet the rising needs as we grow. As more industries emerge and as we shift from liquid fuels to electric power, our energy requirements will multiply.

To meet that demand, we cannot rely on a single energy source. Our energy mix cannot be 100% solar, 100% wind, 100% coal, or 100% gas. It will require a combined effort from all sources to power India. In fact, I don't see coal or gas plants shutting down anytime soon. What we're witnessing is expansion - companies like NTPC and THDC are either installing new projects or upgrading old ones. Given the country's growing power needs, no single technology can claim to power everything alone, whether it's nuclear, solar, or anything else.

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