Centre likely to launch Rs 9,000-cr initiative to boost EV battery production: Report

As per experts, the initiative could attract significant investment, reduce India’s dependency on imports, and position the country as a global leader in battery production.

The government is reportedly evaluating a Rs 9,000-crore initiative to boost the production of key battery components for electric vehicles (EVs) and clean energy systems. The Ministry of Heavy Industries is leading the plan, which has already involved consultations with stakeholders, and further discussions with other ministries are expected, stated a report in the Mint.

The scheme, states the Mint report, aims to support the domestic manufacturing of crucial components such as electrodes, anodes, cathodes, electrolytes, and copper foil, which require heavy capital investment and R&D. Industry giants like Reliance Industries, Hindalco, and Ola Electric were part of the initial discussions, it has been learnt from the report.

According to experts, the initiative could attract significant investment, reduce India’s dependency on imports, and position the country as a global leader in battery production.

Since batteries account for 40 percent of an EV’s cost, localising production could drive down prices, making electric vehicles more affordable and competitive with conventional vehicles. The plan also aligns with India’s broader ambitions to lead in green hydrogen and electrolyser manufacturing.

By 2030, India’s demand for anodes is expected to rise in line with a projected 260 GWh demand for lithium-ion batteries.

This proposed initiative builds on the Rs 18,100-crore PLI scheme for Advanced Chemistry Cell (ACC) batteries approved in 2021, under which 40 GWh of capacity has already been allocated to major companies like Ola Electric and Reliance Industries.