DholeraCity SIR News - Made in India Li-Ion batteries to cut dependence on China.

Made in India Li-Ion batteries to cut dependence on China

The rapid penetration of electric vehicles in India is expected to drive the need for Lithium Li-ion battery manufacturing in the country. Li-ion batteries act as the primary storage option for electro-chemical energy. These batteries are rechargeable and contain Li-ion as the key component of electrolyte.

Recently, TATA Chemicals Ltd has started India’s Biggest Lithium-Ion Battery Plant in Dholera to compete with the Chinese. They have invested Rs 4,000 crores for setting up a lithium-ion battery plant in Dholera Special Investment Region (DSIR) in Gujarat. TATA has already acquired a land parcel of 126 acres in Dholera. Tata Group Company is likely to seek incentives under the PLI scheme and may export cells from India.

Importance for India The major driving factor propelling the growth of Li-ion battery manufacturing industry in India is the government’s plan to boost electric mobility. The Indian government has envisioned the conversion of two and three wheelers into 100% electric ones by 2030. Currently, India is dependent on other countries for sourcing EV batteries, which has resulted in the hiked price of EVs. The penetration of EVs in the Indian automotive sector is expected to bolster the need for indigenous manufacturing of Li-ion batteries, to make them economically viable.

Understanding the opportunities in India for Li-ion Batteries:

• Indian vehicles run on foreign oil and gas. As of FY’19, the country’s dependence on oil imports stood at 83.8 per cent, a stark increase from the 77% in FY’14. As the nation progresses towards clean mobility, if there is not an adequate supply of domestic cells and batteries, India will simply go from being an oil-dependent country to a cell-dependent one. As per reports, India imported $1.23 bn worth of lithium-ion batteries in 2018-19, six times higher than in 2014-15.



• The second point of concern are the components of future mobility. The flourishing Indian auto-component industry has expanded by 10.6 per cent to reach a level of $ 56.2 bn in FY19. It currently accounts for 2.3% of India’s Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly each.



• A cost reduction for the end consumer. One of the primary resistances to the adoption of electric vehicles in India is the exorbitant upfront cost of EVs. With global prices of batteries reducing by almost 87% in real terms 156/kWh (as of 2019), affordability of vehicles is also expected to increase. As India makes the shift from cell-to-pack manufacturing (assembly) plants to full value capture, the domestic cost of the vehicle would also decrease. There is a global consensus that Li-ion battery costs can be reduced by up to 80% if there are larger volumes. At a scale of 50 GWh manufacturing capacity, the cost of a battery in India is expected to be competitive with global costs.

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Source: www.eletimes.com