India to seek bids for $960 million battery production program

The program will require winning bidders to set up advanced chemistry battery plants with a total output of 20 gigawatt hour, said the people, declining to be named as the plans are private. The government will seek bids from potential investors next month, they said.

Bloomberg

November 13, 2023 / 19:00 IST

India to seek bids for $960 million battery production program

India is planning to invite bids for an 80 billion rupees ($960 million) incentive program for production of electric vehicle batteries, according to people familiar with the matter.

The program will require winning bidders to set up advanced chemistry battery plants with a total output of 20 gigawatt hour, said the people, declining to be named as the plans are private. The government will seek bids from potential investors next month, they said.

Companies including Korea’s LG Energy Solution Ltd., and local heavyweights such as Mahindra & Mahindra Ltd., Amara Raja Energy & Mobility Ltd., Exide Industries Ltd. and Larsen & Toubro Ltd. showed interest during a consultation meeting held with government officials, the people said. The government will give incentives to companies over a period of five years on the sale of batteries manufactured locally.

Representatives for Mahindra, Amara Raja, Exide, LG, Larsen & Toubro and the Ministry of Heavy Industries didn’t respond to requests for comment.

Billionaire Mukesh Ambani’s Reliance Industries Ltd., Ola Electric Mobility Pvt. and Rajesh Exports Ltd. were selected last year to produce 30 gigawatt hour worth of battery capacity and avail incentives under the first phase of this government program.