India’s electric vehicle (EV) market is witnessing rapid growth, fueled by the government’s push to promote indigenous innovation and reduce dependency on Chinese imports. With a focus on building a self-sustaining EV ecosystem, the government has launched strategic initiatives to boost research and development (R&D) across EV components, battery technology, and charging infrastructure.
Let’s explore how India is going to reduce dependency on China for EV technology.
Table of Contents
- Introduction
- ANRF: Driving India’s Self-Reliant EV Ecosystem
- Key Government Initiatives Boosting EV Innovation
- ANRF-Academia Partnerships for EV Technology
- Indigenous Battery Technologies: The Core Focus
- Lithium Iron Phosphate (LFP) Batteries: India’s Future
- Exploring Alternatives: Sodium-Ion Batteries
- Advanced Chemistry Cells (ACC) and the PLI Scheme
- Building a Robust EV Charging Infrastructure
- Innovative Financing Models for EV Charging Stations
- Government Investment in the EV Sector
- Addressing Battery Supply Chain Challenges
- Market Potential and Job Creation
- Long-Term Goals and Sustainability
- Conclusion
Central to this transformation is the Anusandhan National Research Foundation (ANRF), which aims to foster local manufacturing, reduce reliance on foreign supply chains, and position India as a global leader in EV technology.
ANRF: Driving India’s Self-Reliant EV Ecosystem
India is embarking on a transformative journey to establish a self-reliant EV ecosystem and reduce its dependence on China for critical technologies and components. Central to this initiative is the Anusandhan National Research Foundation (ANRF), which aims to foster indigenous innovation and manufacturing in the rapidly expanding EV sector.
Established under the ANRF Act of 2023 and operational since February 2024, the foundation plays a pivotal role in guiding India’s EV sector development. Chaired by Prime Minister Narendra Modi, the ANRF provides strategic direction for research and development (R&D) across various sectors, including EV technology. Its mandate includes creating a comprehensive roadmap to stimulate research within academic institutions over short-, medium-, and long-term periods.
How the ANRF-Academia Partnership Will Boost EV Innovation
The partnership between ANRF and academic institutions is set to significantly impact EV innovation in India. This collaboration is primarily driven by two key initiatives:
- Mission for Advancement in High-Impact Areas – Electric Vehicle (MAHA-EV)
- Prime Minister Early Career Research Grant (PMECRG)
The MAHA-EV mission focuses on critical technology verticals such as tropical EV batteries, power electronics, and charging infrastructure. By concentrating on these areas, the initiative aims to strengthen India’s domestic capabilities in designing and developing essential EV components. This targeted approach will reduce reliance on imports and position India as a global leader in EV technology.
Meanwhile, the PMECRG empowers early-career researchers by providing opportunities to engage in innovative research that addresses national priorities. By encouraging creativity and excellence among young scholars, this initiative is nurturing the next generation of innovators essential for the growth of India’s EV sector.
Government Investment in Homegrown EV Technologies
The Indian government has allocated ₹14,000 crore (approximately $1.7 billion) over five years to promote indigenous technology development in the EV sector. This funding focuses on three primary areas:
- Innovative battery technologies
- Power Electronics
- Charging infrastructure
Abhay Karandikar, Secretary and CEO of ANRF, emphasized that this initiative is designed to propel the domestic manufacturing of EVs and components, many of which have traditionally been imported from China.
Market Potential and Job Creation
India’s EV market is projected to reach ₹20 trillion by 2030, with the potential to create 50 million jobs across its ecosystem. The government aims to achieve ambitious EV penetration rates by 2030:
- 30% for private cars
- 70% for commercial vehicles
- 40% for buses
- 80% for two-wheelers and three-wheelers
These targets reflect India’s commitment to boosting domestic manufacturing while addressing environmental concerns through sustainable transportation solutions.
Addressing Battery Supply Chain Challenges
A significant challenge for India is its reliance on imported lithium-ion batteries, with over 70% sourced from China. In 2023 alone, India’s battery import bill reached USD 2.1 billion.
To reduce this dependency, ANRF is fostering partnerships between industry and academia to develop local battery technologies and production capabilities. A robust domestic battery supply chain is crucial for the long-term sustainability of India’s EV sector.
🔹Lithium Iron Phosphate (LFP) Batteries
India is prioritizing the production of Lithium Iron Phosphate (LFP) batteries, which are recognized for their safety, longevity, and cost-effectiveness. It is estimated that around 70% of India’s future battery production will be based on LFP chemistry.
Various companies are already producing LFP battery cells specifically for two-wheeled and three-wheeled EVs. Additionally, Exide Industries is partnering with SVOLT Energy to establish a factory in Bengaluru for both LFP and Nickel Cobalt Manganese (NCM) battery cells.
Alongside LFP, Nickel Cobalt Manganese (NCM) battery technology is also gaining traction due to its higher energy density. Ola Electric is investing in an NCM gigafactory in Tamil Nadu with an initial capacity of 5 GWh, aiming to scale up to 100 GWh.
🔹Exploring Alternatives: Sodium-Ion Batteries
To reduce reliance on lithium and other critical minerals, India is also exploring sodium-ion battery technology. KPIT Technologies has developed sodium-ion batteries with promising applications across various sectors, including automotive and stationary energy storage. These batteries offer a viable alternative for EVs, further diversifying India’s battery portfolio.
Advanced Chemistry Cells (ACC) and the PLI Scheme
The government has introduced a Production Linked Incentive (PLI) scheme to boost Advanced Chemistry Cells (ACC) manufacturing. With an investment of ₹18,000 crore over five years, this initiative aims to establish a robust domestic base for advanced battery technologies, with a target capacity of 50 GWh.
This initiative is crucial for scaling up local production and reducing India’s reliance on imported battery cells.
Building EV Charging Infrastructure
The ANRF’s long-term vision includes innovations in charging infrastructure and power electronics. The foundation aims to install 1.32 million charging stations by 2030 to support the anticipated growth in EV adoption.
Innovative Financing Models for Charging Infrastructure
To address the high costs of developing EV charging infrastructure, India is exploring several innovative financing models, including:
- Public-Private Partnerships (PPPs)
- Revenue-Sharing Models
- Corporate Social Responsibility (CSR) Funding
- Community-Based Funding
- Subsidies and Incentives
- Innovative Land Leasing Models
For instance, Tata Power has signed an MoU with NAREDCO to install 5,000 EV charging points across Maharashtra. Such collaborations leverage the expertise of both the public and private sectors, ensuring efficient expansion of the charging network.
Long-Term Goals and Sustainability
India’s EV roadmap aims to create an integrated ecosystem that encompasses R&D, manufacturing, and infrastructure development. By reducing reliance on external supply chains, India seeks to enhance its economic resilience and position itself as a competitive global player in the EV market.
Conclusion
India’s roadmap to reduce dependency on China for EV technology marks a significant shift towards self-reliance and innovation in the automotive sector. Through targeted investments, strategic partnerships, and the development of advanced battery technologies, India is fostering a sustainable, homegrown EV ecosystem.
As this initiative unfolds, collaboration across government, industry, and academia will be essential to achieving these ambitious goals. By investing in domestic capabilities, India is not only strengthening its economic resilience but also leading the charge toward a greener, more sustainable future in transportation.
