India to Solicit Proposals for $960 Million Battery Manufacturing Initiative
According to persons acquainted with the situation, India intends to request bids for an incentive program worth 80 billion rupees (about USD 960 million) to promote the development of batteries for electric vehicles.
The program’s successful bidders will have to establish 20 gigawatt-hour advanced chemistry battery factories overall, according to the people who asked not to be identified since the plans are confidential. Next month, they claimed, the government will invite proposals from possible investors.
During a consultation meeting with government officials, companies expressed interest, including Larsen & Toubro Ltd., Amara Raja Energy & Mobility Ltd., LG Energy Solution Ltd. of Korea, and Mahindra & Mahindra Ltd., a local heavyweight. Over a five-year period, the government will provide incentives to businesses for the sale of locally made batteries.
Requests for comments from the Ministry of Heavy Industries, Exide, LG, Larsen & Toubro, Mahindra, and Amara Raja were not answered. Reliance Industries Ltd., Ola Electric Mobility Pvt., and Rajesh Exports Ltd., owned by billionaire Mukesh Ambani, were chosen last year to create 30 gigawatt hours of battery capacity and get incentives under this government program’s first phase.
In response to the expanding markets for electric vehicles, grid-scale energy storage, and consumer electronics, research center RMI India and government think tank Niti Aayog released a paper predicting that the demand for batteries will reach 260 gigawatt hours by 2030. The battery push coincides with India’s efforts to promote the use of less-polluting modes of transportation.
According to a Sources, the government of Prime Minister Narendra Modi is thinking about lowering import taxes for battery-powered vehicles in an effort to court Tesla Inc. Additionally, the government plans to increase domestic EV production with a USD 3.1 billion incentive package that will be introduced in 2021. An inquiry for comment was not answered by a Ministry of Heavy Industries spokesperson.