ShreeMetalPrices: Lithium ion batteries require a $10 billion investment from India for EV By 2030

By 2030, India must invest $10 billion in lithium-ion batteries

Currently 70% of India’s lithium ion batteries needs are met by imports, primarily from China and Hong Kong. According to a report by management consulting firm Arthur D Little, India must invest about $10 billion to increase cell production. Refine raw materials in order to meet its domestic demand for lithium ion batteries for electric vehicles by 2030. Read more

The Report states that India’s demand for (Li-ion) lithium ion batteries,. Which is currently 3 GWh and is anticipated to increase to 20 GWh by 2026 and 70 GWh by 2030. “India would need upwards of an estimated $10 billion investments in cell manufacturing capacity, with additional investments in raw material refining capacities, by 2030, merely to fulfil the local demand of Li-ion batteries,” the report stated.

The manufacturing of batteries and related auxiliary industries and services would generate at least one million new employment.

Research was also discussed about, How China Which has been rapidly increasing in the EV battery market over the past ten years and May teach India some valuable lessons. China is now the leader in e-mobility after dominating every phase of the supply chain.

PLI schemes Benefit India As Manufacturing Lithium ion Battery

 According to the Report “Taking lessons from India neighboring country Improved access to raw materials can be provided in various ways Including lowering of import taxes on raw materials and strengthening bilateral relationship with countries rich in the raw materials natural resource and Encouraging Indian companies to obtain those resources.”

The maintenance of PLI schemes and subsidies for cell manufacture, As well as tax breaks and the creation of special economic zones and lithium parks across nations to stimulate investments in raw material refining and cell manufacturing facilities will play a crucial part in the entire process. 

The report also urged strong incentives to ensure compliance and regulation of battery usage, secondary uses, and recycling. 

Due to significant investments in R&D, supportive government policies, inflows of foreign direct investment, and aggressive acquisition of raw material resources globally, China currently leads the world in next-generation EVs. 

The overdependence on imports, Relatively small production, the limited supply of raw materials, and the limited refining capacity are current problems for the Indian EV industry. – SHREE METAL PRICES