Modi government mulls ₹9,000cr plan to boost EV battery production
The Indian government is said to be mulling a ₹9,000 crore plan, to boost the production of critical battery components for electric vehicles (EVs) and clean energy systems. The Ministry of Heavy Industries is leading the project, which has already seen consultations with stakeholders. Further talks with other ministries are expected, according to a report in HT Mint.
Initiative targets domestic manufacturing of key components
The initiative mainly focuses on encouraging the local manufacturing of essential components like anodes, electrodes, cathodes, electrolytes, and copper foil. These components need a lot of capital investment and research & development (R&D) work. Industry giants such as Reliance Industries, Hindalco, and Ola Electric have participated in the preliminary discussions of this plan.
Potential benefits and alignment with India's green goals
Experts believe this initiative could draw massive investment, lessen India's dependence on imports, and make the country a global leader in battery production. As batteries contribute to 40% of an EV's cost, localizing production could make electric vehicles more affordable. The plan also fits into India's larger ambitions to lead in green hydrogen and electrolyzer manufacturing.
India's rising demand for anodes and lithium-ion batteries
By 2030, India's anode demand is expected to increase in tandem with a projected 260GWh demand for lithium-ion batteries. This proposed initiative expands on the ₹18,100 crore PLI scheme for Advanced Chemistry Cell (ACC) batteries approved in 2021. Under the scheme, 40GWh of capacity has already been allotted to major companies such as Ola Electric and Reliance Industries.
Initiative could boost India's export potential
Debi Prasad Dash, President of the India Energy Storage Alliance (IESA), said all these components would need government support for indigenous manufacturing at the first stage. "And these sectors, once developed, would cater to the export market as well, including the US and Europe, apart from the domestic market," he added. Presently, China dominates the supply of most components to battery makers globally.
