India Plans ₹12,000 Crore Boost for Local Battery Components Manufacturing

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. 

Focus On Critical Battery Components 

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. 

Scheme to Encourage Genuine Local Manufacturing 

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. 

Complements Existing ACC Battery Programme 

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. 

Growing Demand for Battery Materials 

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. 

Reducing Dependence on Global Supply Chains 

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. 

Read More: India's Installed Battery Energy Storage Capacity Touches 5.9 GWh; Adds Record 4.6 GWh in 1st Quarter of 2026! 

Conclusion 

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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