While India’s ambitious EV drive continues, the lack of availability of high quality lithium-ion batteries locally remains a concern for EV companies as they are entirely dependent on imports from China.
As batteries comprise up to and sometimes above 30 per cent of the cost of an EV, one of the most expensive components in the entire unit, the Indian government is planning to get local manufacturing of these batteries up and running as soon as possible. Analysts believe self-reliance may take a while.
The finance ministry approved NITI Aayog’s proposal last month to provide an annual subsidy of Rs. 700 crore for battery manufacturing segment with the organization expected to invite bids in December this year [via].
Apart from imports of finished batteries, India remains tied to the import of the raw materials as well, such as lithium, nickel, cobalt and battery grade graphite, which a re essential for the manufacture of rechargeable batteries. China continues to lead the way globally, and India will require massive investment in the sector to match up.