Components of the total cost of operations for AAM The cost of operating AAM in India will be impacted by: a. Upfront capital cost of setting up the vertiports, accompanying infrastructures and the product cost itself b. Costs of operating the vertiports, maintenance, repair and overhauls c. Utilities and labour costs (e.g. fleet operators, pilots, etc.) The capital costs associated with establishing AAM as a transport model in India will be significantly influenced by real estate and construction expenses, which will vary depending on the chosen city and prevailing market rates. However, substantial uncertainty remains regarding the components of product costs, necessitating a more thorough investigation.AAM product costs will be heavily impacted by research and development (R&D) efforts, particularly in designing components that must meet stringent safety regulations while maintaining lighter and more compact structures. This will likely extend design cycles, require more expensive materials and demand stricter testing protocols. Additionally, manufacturing will necessitate specialized infrastructure, and end- of-line testing will require advanced systems to ensure safety compliance. These factors will drive up the overall product cost, underscoring the need for further in-depth analysis. Furthermore, approximately 40% of the total product cost will be attributed to the battery and its components. The product cost will also be influenced by battery lifespan and replacement cycles, with potential for repurposing batteries for other applications through recycling after their AAM life cycle ends. While battery prices are declining, the laws and costs surrounding lithium battery recycling in India are still under evaluation. Volume-weighted average lithium-ion battery pack and cell price split, 2013-2023 FIGURE 10Cell 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023780 535Real 2023$/kWh1Pack245 692 470222 448 300148 345 25194 258 18177211 15259183 12855160 11941150 11535161 12833139 10732 Note: 1. Cost (in dollars) per kilowatt-hour adjusted for inflation to 2023 values. Source: BloombergNEF. (2023). Lithium-Ion Battery Pack Prices Hit Record Low of $139/kWh. https://about.bnef.com/blog/lithium-ion-battery-pack-prices-hit-record-low-of-139-kwh/. Skyways to the Future: Operational Concepts for Advanced Air Mobility in India 25

Skyways to the Future 2024