Need to create robust manufacturing ecosystem for batteries and green hydrogen: Amitabh Kant

Kant emphasized that India has align with the global shift towards electric mobility as the nation strives to reduce its carbon emissions by 30 percent by 2030

G20 sherpa Amitabh Kant, who has time and again asserted that India should target 100 percent electrification in the two- and there-wheeler segment by 2030,  has now stressed the significance of expanding domestic battery manufacturing capabilities in the country.

The former Niti Aayog CEO underscored the need for creating a robust battery manufacturing ecosystem that would not only reduce dependence on imports but also generate substantial employment opportunities.

“Automobile components are really the heart and soul of manufacturing in India and therefore all of you (industry players) are the champions of manufacturing. You can be the champion of penetrating global markets. We are already the champions in the field of combustion two-wheelers, three-wheelers, and exports to the world. But as the world is shifting towards electric vehicles, we need to create a battery manufacturing environment in India,” Kant said at the annual convention of the Automotive Component Manufacturers Association of India (ACMA).

Kant emphasised that India has to align with the global shift towards electric mobility as the nation strives to reduce its carbon emissions by 30 percent by 2030.  Exhorting the industry stakeholders, he said, “All of you should think of how we will do both battery and electric vehicle manufacturing here.”

In his view, manufacturing has to grow at a rapid pace since no country has grown solely on the back of its services sector. He said he strongly feels that the growth of the manufacturing sector is critical for India's economic growth and automobile and auto component sectors will be the key driver for the same.

“There is a massive opportunity for India to be the champion of electric vehicle (EV) manufacturing. The world is going electric—China has demonstrated it and India (too) has to go electric," asserted Kant. He added, “There is a worldwide shift towards EVs and India must not lag behind in this transformative journey.”

Kant also anticipated a huge push toward biofuels in the four-wheeler (4W) segment as that will constitute 20 percent of the fuel composition (with the mixture of ethanol). He opined that long-distance transportation vehicles such as trucks and buses will have a huge component of green hydrogen in the long term.

“We need to replace coal with green hydrogen.  The only other country in the world probably is Saudi Arabia that has similar climatic conditions as India. But India's climatic conditions are top class and we are the best entrepreneurs in the world to produce green hydrogen. The challenge is that green hydrogen is today about $4.50 a kg. With the size of scale, we should be able to bring it down to $2.50 a kg and further to $1 by 2030. This is our ambition and my view is that it is very much doable,” he said.

Kant said that in the immediate future, India needs to go electric in all the segments and this will also require a huge amount of going digital. He added that India would not just need “technologically leapfrogging” but also need a "pole vaulting” to penetrate global markets.

"Those who do not go electric will lose the competitive edge, will lose market share and will hugely lose out in the marketplace. If the world is going electric, we must understand it is an imperative compulsion on the Indian industry to go electric. We should not remain status quoist and lose track of this,” he said.

Kant revealed that the green development pact, part of the G20 declaration adopted by world leaders, has opened up enhanced business opportunities for the Indian automotive and components sector to become the global leader in electric and sustainable mobility.

He also noted that after all the negotiation of the G20 on green development pact, the one clear thing is that there will be a “huge imperative “of global climate change.

“The world will push us and it is necessary not merely for the world but for ourselves to do it. It's imperative for us to push for climate action and on our need to retain its export markets,” he signed off.