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Electric vehicle fleet can create $300 bn domestic battery mkt: Niti report

To meet India's domestic EV battery requirements, the country would need around 20 Giga factories, each of which entails an investment of $ 5 billion

Press Trust of India  |  New Delhi 

Electric vehicle fleet can create $300 bn domestic battery mkt: Niti report

India's move towards 100 per cent (EVs) fleet by 2030 could create a $ 300 billion domestic market for batteries, according to a report by government think tank and Rocky Mountain Institute. The country will account for two-fifths of battery demand by then and the shift to the clean energy fuel could require an investment of $ 100 billion to set up 20 Giga factories to produce batteries, based on today's cost. "In line with India's aspiration to have 100 per cent sales by 2030, can rise among the top countries in the world in batteries," the report said. Titled 'India's Energy Storage Mission: A Make in opportunity for globally competitive battery manufacturing', the report further said the country's ambitious target for EVs is a "game changer and its achievement could drive down costs and build production-scale faster than anticipated in existing projections". "India's leapfrog vision of a shared, electric, and connected mobility system could create a $300 billion domestic markets for electric vehicle (EV) by 2030," it said. This would represent nearly two-fifths of battery demand, according to the report. Commenting on the findings, CEO said,"India's mobility transformation presents an enormous economic opportunity for " Innovative business models and supportive policy frameworks can help make a hub for and their components, accelerating this transition while creating jobs, strengthening Indian industry, and cleaning the air, he added. To meet India's domestic battery requirements, the country would need around 20 Giga factories, each of which entails an investment of $ 5 billion, thus taking the total to $100 billion. As per the report, a is a factory that is representative of Tesla's battery facility in Nevada, USA which has a total capacity of 35Gwh per annum and required an investment of $ 5 billion. It estimates that can capture 2540 per cent of the total economic opportunity represented by battery under a scenario where imports lithium-ion cells and assembles these cells into battery packs. Going forward, as the country's battery matures and starts producing both cells and packs while importing only the cathode or its raw materials, the report said stands to capture nearly 80 per cent ($ 240 billion) of the economic opportunity over time. It further said based on historic learning rates, demand for in could drive down battery prices by as much as 16 per cent to USD 60 per KWh by 2030 as compared to projections that do not include India's goals. Rocky Mountain Institute Managing Director (India) James Newcomb said while the energy transition is already underway and moving with breathtaking speed, many forecasts have not taken into account India's ambitions in mobility. "has an opportunity not only to become one of the largest electric vehicle markets in the world but also to support electric vehicle adoption globally," he added. The report, however, said coordination among industry stakeholders and government can help define a pathway to growth and competitiveness by establishing a shared technology roadmap, creating common standards, and aligning policies. and RMI recommended that create a consortium, including representatives from the battery industry, OEMs, government, and subject experts to work towards achieving the goal.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, November 22 2017. 18:38 IST