India plans a Rs9,000-crore boost to EV battery production
18 Dec 2024
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Amidst rising demand for lithium-ion batteries in the country, the Narendra Modi government is planning a Rs9,000-crore incentive scheme to boost production of batteries for electric vehicles (EVs).
The government intends to substantially increase the production of key battery components for electric vehicles and other clean energy solutions.
With an expected surge in the production of electric vehicles in India, the demand for anodes for lithium-ion batteries is projected to increase substantially by 2030.
The ministry of heavy industries has initiated a consultation process, involving industry stakeholders, with a view to make the country self-reliant in this sector.
The key to localisation of production is the availability of key components and the government intends to encourage domestic manufacturing of critical components for batteries like anodes, electrodes, cathodes, electrolytes, and copper foil. This, however, require significant capital investment and research and development efforts.
Major industry houses, including Reliance Industries, Hindalco, and Ola Electric, participated in the preliminary round of discussions.
This initiative could give a big boost to India’s energy storage and electric vehicle manufacturing ecosyste, thereby reducing the cost of electric vehicles as country’s reliance on imports.
At present, batteries account for 40 per cent of the total cost of an electric vehicle.
Also, as per the stated goals of India’s green energy programme, including in advancing green hydrogen and electrolyzer manufacturing, the demand for anodes and lithium-ion batteries is projected to increase substantially by 2030.
The country’s demand for lithium-ion batteries is expected to rise to 260 GWh as per the projections under the Rs18,000 crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries, approved in 2021.
This initiative also has the potential to position India as a major exporter of battery components, according to Debi Prasad Dash, president of the India Energy Storage Alliance (IESA).
The ministry of heavy industries has announced various schemes for boosting local production of electric vehicles
