India Plans $1.4 Billion Incentive Package to Boost Battery Component Production

India is working on a new incentive programme of up to ₹13,000 crore ($1.37 billion) for manufacturers of advanced battery cell components, as per The Bloomberg report. 

The plan is aimed at building more of the battery supply chain within the country, where manufacturers still rely heavily on imported components. 

The proposal is likely to be placed before the Finance Ministry's Expenditure Finance Committee after consultations between ministries. 

Five Battery Components in Proposed Scheme 

The proposed support would cover anode and cathode active materials, electrolytes, separator film and copper foil. 

These are among the key inputs used in battery cells, while most Indian battery manufacturers currently source them from Chinese suppliers. The proposal comes as the government seeks to reduce this dependence and improve domestic energy security. 

Existing 50 GWh Scheme Faces Delays 

The new proposal follows India's existing 50 GWh advanced battery incentive programme, which supports large-scale cell manufacturing. 

By March, 40 GWh had been awarded to companies including Mukesh Ambani's renewable energy unit and Ola Electric Mobility. However, some recipients have struggled to meet production milestones. 

The Ministry of Heavy Industries has cited unavailable technology, shortages of skilled workers, imported equipment and a lack of upstream components among the reasons for delays. 

Ola, Tata, Exide and Amara Raja Building Capacity 

Ola Electric has recently begun limited cell production and expects to take its capacity to about 6 GWh. 

The Tata Group, Exide Industries and Amara Raja Energy & Mobility are also building or operating cell manufacturing facilities. These companies are doing so outside the government's existing battery incentive programme. 

The Ministry of Heavy Industries had not immediately responded to a request for comment on the proposed component incentive. 

Read More: India Targets $100 Billion Russia Trade as EAEU FTA Talks Reach Advanced Stage! 

Conclusion 

The proposed ₹13,000 crore programme would extend India's battery manufacturing push beyond cells to five key components, although the scheme is still awaiting consideration and its final structure has not been disclosed. 

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