India is preparing a new incentive scheme to support domestic manufacturing of critical battery components, as the government looks to strengthen local supply chains for electric vehicles and advanced energy storage technologies, as per news reports.
The proposed scheme is expected to provide financial support of around ₹12,000 crore and is currently in the final stages of approval.
The incentive programme is expected to cover the manufacturing of cathode active materials (CAM), anode active materials (AAM), electrolysers, and copper foil separators.
These components are essential for advanced chemistry cell batteries, but India currently relies entirely on imports to meet domestic demand.
Officials indicated that the scheme will include conditions designed to promote end-to-end domestic production and supply chain development.
The government intends to ensure that companies undertake meaningful manufacturing activities within the country rather than relying on imported products with limited processing.
The proposed initiative is expected to complement the ₹18,100 crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery manufacturing. The ACC scheme aims to establish 50 GWh of battery manufacturing capacity in India.
As per news reports, India will require more than 400,000 tonnes of cathode active materials and over 200,000 tonnes of anode active materials by 2030.
The projected demand is linked to the country's expected battery manufacturing capacity of around 223 GWh over the coming years.
The initiative comes as India intensifies efforts to reduce import dependence in strategic sectors such as electric mobility, defence, renewable energy, and space technology.
Copper foil, a critical battery component, remains heavily concentrated in global markets, with Chinese and South Korean manufacturers dominating production capacity.
The proposed ₹12,000 crore battery component incentive scheme is aimed at building a domestic ecosystem for critical battery materials and reducing import dependence. If approved, the programme could strengthen India's electric vehicle supply chain and support the country's long-term clean energy and manufacturing ambitions.
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Published on: Jun 18, 2026, 3:06 PM IST
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