Production of 50 GWh battery cells to start in early 2024: MHI Minister

Union Heavy Industries Minister Mahendra Nath Pandey announced on Wednesday that India will commence local production of around 50 Gigawatt Hour (GWh) battery cells by early 2024. Speaking at the Green Plate EV Rally, Pandey emphasized the government's sustained efforts to boost the electric vehicle (EV) sector. "With 9.4 lakh EVs already on Indian roads, the production-linked incentive (PLI) scheme has been instrumental in supporting domestic manufacturing and reducing our dependency on imports," he said.

Currently, batteries are only assembled in India, with cells imported primarily from China, Taiwan, and European nations. The government's push for indigenous manufacturing gained momentum in 2021 with the announcement of the Rs 18,100 crore PLI scheme aimed at producing 30 GWh of Advanced Chemistry Cell (ACC) Battery Storage. Contracts for constructing a 30 GWh capacity have been awarded to Ola Cell Technologies, ACC Energy Storage, and Reliance New Energy Battery Storage. Other companies, including Tata Group, Exide, and Amara Raja, have also declared their plans to develop battery cells domestically. The government is further planning to auction the remaining 20 GWh of capacity.

Union Power and New & Renewable Energy Minister R K Singh also indicated earlier this week that a new PLI scheme for batteries is in the pipeline to reduce costs and spur EV adoption. Pandey added, "The discovery of lithium reserves in Northern India and our commitment to becoming a net-zero nation by 2070 are driving various green technology initiatives."

Kamran Rizvi, Secretary of the Ministry of Heavy Industries, revealed that the government anticipates the sale of 12 lakh electric scooters this year. "By 2030, we expect 60 to 70 per cent of two-wheelers and 70 to 75 per cent of three-wheelers to be electric. For cars, the aim is to double the sale of one lakh electric cars," Rizvi stated.

Dr Hanif Qureshi, Joint Secretary of the Ministry, urged the industry to accelerate the pace of sustainable transition in collaboration with the government. "Europe, the US, and China currently lead in EV sales, and it's high time India matched up," Qureshi said.