The green allure of electric vehicles (EVs) may come with a hidden environmental and social price tag, warns Zerodha co-founder and CEO Nithin Kamath. In a post on X (formerly Twitter) earlier today, Nithin Kamath highlighted the unintended consequences of the transition from internal combustion engine (ICE) vehicles to EVs.
Kamath questioned whether the world is simply shifting pollution away from cities to remote and vulnerable regions as part of the EV push.
“I’m not sure most people truly understand the cost of transitioning from ICE vehicles to electric vehicles. Are we just moving pollution from city streets to biodiversity hotspots?” he wrote
Environmental toll and resource monetization
Kamath pointed out that mining and processing activities required for EV battery production have significant impacts on the environment and communities. He mentioned that Nickel mining in Indonesia — responsible for roughly half of the global supply — is devastating “paradise islands” through massive strip‑mining operations.
Cobalt extraction in the Democratic Republic of Congo — where over 70% of the world’s supply originates — is linked to child labour, dangerous working conditions, and community displacement.
Additionally, China’s dominance in mineral processing — wielding control over 90% of rare earths, 75% of lithium, and 80% of tungsten — heavily relies on energy from coal‑powered plants, he noted.
“These environmental costs exist at every step,” Kamath underscored, prompting reflection on whether reduced emissions in cities are simply being outsourced to global supply chains.
Kamath’s message resonates with broader concerns that “clean” technology can mask a darker reality. He cautioned:
“Cleaner streets, yes. But at the cost of dirtier oceans, shattered communities, and forgotten islands?”
His remarks come at a time when EV adoption is increasing rapidly across the globe, driven by goals to reduce carbon emissions and dependence on fossil fuels.
Kamath did not suggest halting the transition to EVs but appeared to call for greater awareness and consideration of the broader environmental impact of the supply chain involved.
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