Nitin Gadkari, Minister of Road Transport and Highways, has stated that India could become the largest exporter of lithium-ion batteries globally within the next five years. Speaking at the Bloomberg NEF Summit, Gadkari emphasised ongoing research in various lithium-ion battery technologies and expressed optimism about India’s potential to gain international recognition in this field.
India is currently in the early stages of lithium-ion battery production, which is critical for electric vehicles (EVs) and renewable energy storage. The country relies heavily on imports from China, Japan, and South Korea for these lithium-ion battery. By the end of the decade, India’s battery manufacturing capacity is expected to range from 100 to 1,500 gigawatt hours (GWh). The government has introduced a production-linked incentive (PLI) scheme worth ₹18,100 crore to establish advanced chemistry cell (ACC) manufacturing facilities, aiming for a target of 50 GWh production capacity.
Several companies, including Amara Raja, Ola Electric, Exide Industries, Reliance Industries, and GODI India, are investing in gigafactories for lithium-ion cell production. This domestic manufacturing effort is anticipated to support the adoption of electric vehicles and localize the supply chain. Batteries typically account for approximately 40% of the total cost of an electric vehicle. The high acquisition costs, driven largely by battery prices, are viewed as a significant barrier to EV adoption in India.
Gadkari’s comments highlight the government’s commitment to enhancing India’s battery manufacturing capabilities, which could have substantial implications for the electric vehicle market and the broader renewable energy sector. This initiative reflects a strategic move to reduce dependency on imports and bolster domestic production, aligning with global trends in battery technology and sustainability.
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