According to a report, India need Rs 33,750 crore in investments to meet the government’s PLI aim of establishing 50 GWh of lithium-ion cell and battery production units.
According to an independent research released by the Council on Energy, Environment, and Water (CEEW), the country requires up to 903 GWh of energy storage to decarbonize its mobility and electricity sectors by 2030, and lithium-ion batteries will cover the majority of this requirement.
According to the study report, India requires investments of up to Rs 33,750 crore (USD 4.5 billion*) to meet the government PLI aim of establishing 50 GWh of lithium-ion cell and battery production units. CEEW, on the other hand, stated that at the time of authoring the report, the conversion rate was Rs 75 per US dollar.
The CEEW research ‘How can India indigenously manufacture lithium-ion batteries?’ estimates the material and financial requirements and provides a design for the domestic approach, as demand in India is likely to rise dramatically.
Earlier this month, the government reported that 5.9 million tonnes of lithium deposits had been discovered for the first time in the country in the Jammu and Kashmir district of Reasi.
To scale up domestic lithium-ion manufacturing, India should increase R&D spending, focus on battery cell component manufacturing and lowering material costs, and encourage recycling to reduce the demand for new materials, according to him.
To maintain competitiveness, the CEEW study suggests focusing on strategic mineral sources and pushing for research, development, and demonstration in all technologies.
Meanwhile, it stated that lowering the cost of manufacturing batteries through innovation and updating production techniques, as well as adopting regulatory changes to lower the cost of cell components, are critical.
Battery development and deployment will have far-reaching consequences for India’s energy transition journey. India is currently import-dependent, but the government has already begun mobilising resources to indigenize battery cell manufacture, according to Dhruv Warrior, Research Analyst.
The focus on mineral processing and component manufacturing are, however, limited. The study estimates that the share of upstream component manufacturing and material processing can be as high as 61 per cent.
Going forward, India must develop its capabilities to build skills, technology know-how and infrastructure to indigenise this part of the value chain too, said Warrior.
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