India unveils ambitious ₹8,000 crore plan to boost production of Electric Vehicle Battery

Anushka Khare Posted on: 2023-11-21 07:10:00 Viewer: 2,187 Comments: 0 Country: India City: New Delhi

India unveils ambitious ₹8,000 crore plan to boost production of Electric Vehicle Battery

New Delhi, India (Urban Transport News): In a strategic move to bolster the electric vehicle (EV) landscape, India has revealed an ambitious plan, allocating Rs 8,000 crore ($960 million) for an incentive scheme aimed at accelerating electric vehicle battery production. The initiative, reported by Bloomberg, is poised to propel India's position in the global electric vehicle market.

Bidding Process and Key Players

The bidding process, set to commence in the upcoming month, will be a pivotal moment for the EV industry in India. Successful bidders will be tasked with establishing cutting-edge chemistry battery plants, collectively generating an impressive capacity of 20 gigawatt-hours. Notably, companies such as South Korea's LG Energy Solution Ltd., and prominent local entities like Mahindra & Mahindra Ltd., Amara Raja Energy & Mobility Ltd., Exide Industries Ltd., and Larsen & Toubro Ltd., have already expressed their keen interest during a consultation meeting with government officials, signaling a strong industry endorsement.

Incentives and Market Dynamics

The proposed incentives are structured to span over a five-year period, contingent upon the sales of locally manufactured batteries. This forward-looking approach aligns with the government's commitment to promoting self-reliance and sustainability in the EV sector. In the previous year, notable entities like Reliance Industries Ltd., Ola Electric Mobility Pvt., and Rajesh Exports Ltd. were selected under a similar program, producing 30 gigawatt-hours of battery capacity and receiving incentives in the initial phase.

Anticipating a surge in demand, a joint report by research center RMI India and the government's think tank Niti Aayog forecasts the need for 260 gigawatt-hours of batteries by 2030. This projected demand is driven by the expanding markets of electric vehicles, grid-scale energy storage, and consumer electronics.

Aligning with National Goals

The battery-centric initiative is a pivotal component of India's broader goal to promote cleaner transportation. Prime Minister Narendra Modi's administration is reportedly considering a reduction in import taxes for battery-powered vehicles to attract global players, including the likes of Tesla. In tandem with this, the government is actively supporting local electric vehicle production through a substantial $3.1 billion incentive program launched in 2021.

In a noteworthy development, Piyush Goyal, the Union Minister for Commerce and Industry, visited Tesla's manufacturing facility in Fremont, California, this week. During the visit, he disclosed that Tesla is contemplating a twofold increase in its component imports from India, signaling a potential deepening of ties between the American electric car manufacturer and the Indian market.

A Transformative Step Towards a Greener Future

India's Rs 8,000 crore plan to boost electric vehicle battery production marks a transformative step toward a greener and more sustainable future. The alignment with global industry leaders, coupled with proactive government initiatives, positions India as a key player in the rapidly evolving landscape of electric mobility. As the bidding process unfolds and companies gear up for substantial battery production, the nation inches closer to realizing its vision of widespread EV adoption and reduced environmental impact.

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