Bangladesh is in the process of building a lithium battery production facility with a 1 gigawatt yearly capacity in order to keep its promise to reduce greenhouse gas (GHG) emissions as part of the nation's nationally determined contribution (NDC) under the Paris Agreement. Several projects to manufacture electric vehicles are also in the works concurrently. According to industry experts, these actions might alter the nation's energy landscape.
NDCs are each nation's intentions to keep the increase in global temperature to less than 2 degrees by the end of the century. Bangladesh has suggested an unconditional reduction of 3.4 million metric tons of CO2 equivalent GHG emissions in the transportation sector by 2030, which makes up 9% of the nation's overall GHG emissions. Bangladesh plans to gradually phase out internal combustion engines in favor of electric vehicles to reduce pollution and reliance on fossil resources. For propulsion, EVs prefer lithium-ion battery technology over other battery types.