Government mulling incentives for battery cell component manufacturing

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“The Ministry is currently developing a concept note aimed at bringing policymakers together to agree on specific schemes that will support the manufacturing of [advanced-chemistry battery cell] components. This support will involve financial systems, policy regulations, and ease of doing business,” said Vijay Mittal, Joint Secretary, Ministry of Heavy Industries, while addressing the 4th India Battery Manufacturing & Supply Chain Summit in New Delhi today.

Currently, battery pack assembly is already done in India, and battery cell manufacturing has received major boost with the launch of production-linked incentive (PLI) scheme for advanced chemistry cells in India. Three companies have signed PLI agreements to establish a combined capacity of 40 GWh for cell manufacturing. Additionally, plans for a bidding process for the remaining 10 GWh, focused on stationary storage technologies, are underway. Cell manufacturing opens opportunity for domestic manufacturing of cell components like cathodes, anodes, separators, electrolytes and cell packaging, leading to fully integrated battery manufacturing in India.

“If we do not achieve a domestic value addition (DVA) of over 50%, it does not genuinely align with the essence of “Make in India. Any manufacturer producing goods in this country—be it advanced-chemistry cell (ACC) batteries or any other product—that possesses over 50% DVA is recognized as a Class 1 supplier and a genuine contributor to our requirements,” said Mittal.

Mittal highlighted the role of recycling to cut reliance on imports for critical raw materials. “Since we may not have sufficient lithium resources, ensuring that lithium remains in the country through recycling and is reused in batteries could be a significant breakthrough for our self-reliance in cell manufacturing,” Mittal added.

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