Govt to support cell component manufacturing in India: Heavy Industries Minister Kumaraswamy | Today’s news
New Delhi: Union Heavy Industries Minister HD Kumaraswamy on Wednesday said the government will support manufacturing of cell components in India as localization of the entire value chain is critical in the wake of global supply chain disruption, according to a press statement.
“Government can provide policy direction and create a supporting framework, but the success of this mission will depend equally on active collaboration between industry, research organizations and other stakeholders. We must work together to build a complete domestic The ACC ecosystem,” Kumaraswamy said at a consultation with cell component manufacturers and experts in New Delhi.
“India needs to develop capabilities across the entire battery value chain and become a globally competitive manufacturing hub for advanced battery technologies,” he said, adding that reducing imports and building a robust domestic value chain is a strategic imperative as India is at a pivotal point in its energy transformation to become a net zero carbon producer by 2070.
It depends on the import
While India has introduced schemes to promote the production of advanced chemical cells, localization is only about 20-25%, meaning that about three-quarters of the value chain is still dependent on imports, Kumaraswamy said.
“The main concerns raised included high capital and operating costs, dependence on imported manufacturing equipment, high energy consumption, aggressive pricing in the global market, limited access to technology and extended qualification cycles of 12 to 18 months with battery cell manufacturers. Global supply chain vulnerabilities and export controls for critical battery technologies and components were also discussed in detail,” the press release said.
India’s demand for cells is expected to grow to around 196 GWh by 2030 and to around 236 GWh by 2032 due to increasing adoption of electric vehicles, grid energy storage services and data centers, the minister said.
Urgent need
Kumaraswamy noted that India’s battery cell component industry urgently needs support due to massive supply shortages. For example, current domestic capacity for lithium iron phosphate (LFP) – a crucial cathode material prized for its safety and longevity – is only 5,775 tonnes per year, compared to a projected requirement of 472,000 tonnes per year by 2032. Similarly, domestic production of copper separators and foils is currently nil, while post-copper foil production will be drastically short-lived.
The government’s support for cellular components comes on the heels of India’s support ₹18,100 million incentive package for 50 GWh cell production capacity. While three companies — Ola Electric, Rajesh Exports and Reliance Industries — have been selected to build battery capacity, no incentives have been paid under the scheme so far.
Mint has previously announced that the government is working on a scheme to support the manufacture of cell components, with discussions in the past two months revolving around whether capital or operating expenditure incentives should be provided.
