Indian government mulls battery cell component manufacturing incentives

India can become self-reliant in battery cell manufacturing if lithium remains in the country through recycling, said Vijay Mittal, joint secretary of the Ministry of Heavy Industries.
Lithium-ion battery cell production at a Log9 Materials facility. | Image: Log9 Materials

Vijay Mittal, joint secretary of India’s Ministry of Heavy Industries, told the 4th India Battery Manufacturing & Supply Chain Summit his ministry is “currently developing a concept note aimed at bringing policymakers together to agree on specific schemes that will support the manufacturing of [advanced-chemistry battery cell] components.”

The proposed support “will involve financial systems, policy regulations, and ease of doing business,” Mittal told the New Delhi summit, on Jan. 17, 2025.

Battery pack assembly already takes place in India and cell manufacturing received major boost with the launch of a production-linked incentive (PLI) scheme for advanced chemistry cells.

Three companies have signed PLI agreements to set up a combined annual cell manufacturing capacity of 40 GWh. Plans for a bidding process to procure another 10 GWh of battery cell production lines, focused on stationary energy storage, are underway. Battery cell manufacturing opens an opportunity for the domestic manufacture of cell components including cathodes, anodes, separators, electrolytes, and cell packaging. Such developments would mean fully integrated battery manufacturing in India.

“If we do not achieve a domestic value addition (DVA) of over 50% [the percentage of value added to final products after processing in India], it does not genuinely align with the essence of ‘Make in India’,” said Mittal, referring to the nation’s domestic manufacturing drive. “Any manufacturer producing goods in this country – be it advanced-chemistry cell … batteries or any other product – that possesses over 50% DVA is recognized as a class one supplier and a genuine contributor to our requirements.”

The speaker highlighted the role recycling can play in reducing reliance on imports for critical battery raw materials.

“Since we may not have sufficient lithium resources, ensuring that lithium remains in the country, through recycling and [reuse] in batteries could be a significant breakthrough for our self-reliance in cell manufacturing,” Mittal added.

From pv magazine India.

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