Govt Developing New Support Framework For EV Battery Manufacturing
Date
1/16/2025 4:12:57 AM
(MENAFN- KNN India)
New Delhi, Jan 16 (KNN) The Ministry of Heavy Industries (MHI) is crafting a comprehensive scheme to boost domestic value addition (DVA) in electric vehicle battery manufacturing, encompassing financial lending support and business facilitation measures.
The initiative aims to strengthen India's position in the growing electric vehicle sector.
Speaking at the India Battery manufacturing and supply chain Summit 2025 in Delhi, MHI Joint Secretary Vijay Mittal revealed that the ministry is preparing a concept note to unite policymakers around specific schemes supporting battery component manufacturing.
The initiative will address financial systems, policy regulations, and ease of doing business considerations.
The focus on domestic manufacturing aligns with existing production linked incentives (PLI) for the automotive sector, which requires a minimum 50 percent DVA for companies to qualify for subsidies.
Mittal emphasised that manufacturers achieving over 50 percent DVA in products like advanced chemistry cell (ACC) batteries are classified as Class 1 suppliers, reflecting their meaningful contribution to domestic manufacturing goals.
Addressing resource sustainability, Mittal highlighted the critical role of recycling in India's battery manufacturing ecosystem.
He suggested that effective lithium recycling and reuse in batteries could significantly advance India's self-reliance in cell manufacturing, particularly given limited domestic lithium resources.
The government's commitment to battery manufacturing is evidenced by its 2021 National Programme on Advanced Chemistry Cell Battery Storage, which targets a manufacturing capacity of 50 GigaWatt Hour (GWh) of ACC and 5 GWh of Niche ACC, supported by a Rs 18,100 crore budget.
Additionally, the government has implemented a viability gap funding scheme for battery energy storage systems, aiming to develop 4 GWh capacity by 2030-31 with Rs 3,760 crore in budgetary support.
(KNN Bureau)
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