Food VS Fuel

The diversion of phosphoric acid, a key ingredient in fertilizers, for electric vehicle (EV) battery production is creating a potential “food vs cars” dilemma. This issue is particularly relevant in the context of India’s heavy reliance on phosphate imports and the growing demand for EVs as part of the global push towards clean energy.

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1. Understanding the Dilemmas

• Food vs Fuel Dilemma:
  • Definition: The conflict between using crops like sugarcane, maize, and soybeans for producing biofuels (ethanol, biodiesel) instead of for food.
  • Impact: This can lead to reduced food supply and increased food prices.
  • Example: The U.S. Renewable Fuel Standard (RFS) led to a significant portion of corn being diverted to ethanol production, impacting food prices1.
• Food vs Cars Dilemma:
  • Definition: The conflict arising from the use of phosphoric acid, essential for fertilizers like di-ammonium phosphate (DAP), being diverted to produce lithium-iron-phosphate (LFP) batteries for EVs.
  • Impact: This shift could lead to fertilizer shortages, affecting crop production and food security while supporting the growth of the EV industry2.

2. Ethical Dilemmas

• Food vs. Cars:
  • Issue: Prioritizing food security over technological advancements in EVs.
  • Example: The increasing use of phosphoric acid in LFP batteries could compromise the supply of DAP fertilizers, crucial for agriculture2.
• Resource Allocation:
  • Issue: Deciding between using limited phosphoric acid for crop growth (essential for global food security) or for EV battery production (important for clean energy and reducing carbon emissions).
  • Example: The global demand for EVs is rising, leading to increased competition for phosphoric acid2.
• Global Dependency:
  • Issue: India’s heavy reliance on phosphate imports raises questions about fairness and equity in global resource distribution.
  • Example: India imports a significant portion of its phosphoric acid from countries like Jordan, Morocco, and Tunisia2.
• Sustainability vs. Development:
  • Issue: Balancing environmental sustainability (EV batteries) with food security.
  • Example: The push for EVs to reduce carbon emissions must be weighed against the potential impact on food production2.
• Economic Inequality:
  • Issue: Small-scale farmers in countries like India may face economic difficulties due to rising fertilizer costs, deepening inequality.
  • Example: As phosphoric acid is diverted to EV battery production, the cost of fertilizers may rise, impacting small farmers2.

Examples and Current Events

• India’s Phosphate Imports:
  • India consumes around 10.5-11 million tonnes of DAP annually, with more than half supplied through imports2.
  • In 2022-23, India imported 6.7 million tonnes of DAP, 2.7 million tonnes of phosphoric acid, and 3.9 million tonnes of rock phosphate2.
• EV Market Growth:
  • The global demand for LFP batteries, which use phosphoric acid, has been rising, with these batteries supplying over 40% of the global EV capacity demand in 20232.

Conclusion

The “Food vs Cars” dilemma highlights the complex interplay between food security and technological advancement. Policymakers must navigate these ethical and practical challenges