Bid Invitations for Top-Notch Battery Production Facilities Set to Commence in December.
In a strategic move aimed at fostering the electric vehicle (EV) ecosystem in the nation, the Indian government has allocated a substantial sum of Rs 8000 Crore to advance the manufacturing of EV batteries. The initiative, set to kick off with a bidding process, aims to establish state-of-the-art battery production facilities, creating a total capacity of 20 gigawatt-hours. Prospective investors are anticipated to engage in the bidding process, slated to commence in December.
Key global players, including South Korea’s LG Energy Solution Ltd. and Indian companies such as Mahindra & Mahindra Ltd., Amara Raja Energy & Mobility Ltd., Exide Industries Ltd., and Larsen & Toubro Ltd., have expressed interest in establishing these cutting-edge facilities. The government is extending incentives for a five-year period, contingent on the batteries being entirely manufactured within the country.
Reports indicate that prominent entities like Mukesh Ambani’s Reliance Industries Ltd., Ola Electric Mobility Pvt., and Rajesh Exports Ltd. received government incentives a year ago for producing 30 gigawatt-hours of battery capacity. Anticipating a surge in demand, a survey report jointly published by Niti Aayog and RMI India underscores the need for 260 gigawatt-hours of batteries by the conclusion of 2030. The report envisions a positive ripple effect on the EV market, consumer electronics, and grid-scale energy storage.
Aligned with the objective of achieving net-zero emissions, this battery incentive initiative aligns with Prime Minister Modi’s government’s persistent efforts to reduce import duties for battery-backed cars, with the aim of attracting global giants like Tesla. In addition to the battery incentive package, an extra incentive of $3.2 billion has been earmarked to stimulate the growth of electric vehicles across the country.
The infusion of Rs 8000 Crore into the incentive scheme signals a significant stride towards establishing India as a manufacturing hub for EV batteries. As the bidding process commences in December, industry leaders and potential investors are poised to play a crucial role in propelling India towards a greener, more sustainable future in the realm of electric mobility.