In Short : The Indian government is actively considering the implementation of another production-linked incentive (PLI) scheme, specifically targeting the battery manufacturing sector. Union Minister R K Singh has indicated that discussions are underway to introduce incentives aimed at boosting battery production in the country. This move aligns with the government’s larger strategy to enhance domestic manufacturing capabilities, reduce import dependency, and strengthen the renewable energy ecosystem. Such incentives are expected to stimulate investments, accelerate research and development, and promote the adoption of advanced battery technologies, fostering India’s transition towards a sustainable and self-reliant energy landscape.
In Detail : The minister opined that higher cost and lower driving range are issues in adopting EVs.
The government will bring out another production-linked incentive scheme for batteries to bring down cost and boost the adoption of electric vehicles in India, union minister R K Singh said on Monday.
Speaking at the EV (electric vehicles) Ready India Dashboard of OMI Foundation, the Union Power and New & Renewable Energy Minister said, “We are coming out with another production-linked incentive (PLI) to increase the volumes (of storage or battery).”
He was of the view that the price of storage will come down with (higher) volumes. “Price of storage will come down only if you add volumes. That is why there is a production-linked incentive (PLI) for storage,” he said.
He pointed towards limited battery manufacturing capacity in the world and termed it as a reason for high prices.
The minister opined that higher cost and lower driving range are issues in adopting EVs.
The central government had approved the (PLI) scheme for manufacturing advanced chemistry cell (ACC) batteries at an estimated outlay of Rs 18,100 crore in May 2021, with an objective to attract foreign and domestic investment of Rs 45,000 crore.
The scheme was aimed to achieve manufacturing of 50GW of battery storage.
The ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.
“For us as a country switching to electric mobility is of absolute importance. One rider to emerge as a power (economy), is that you cannot be energy dependent. That is our primary reason to push towards EV,” the minister said.
Singh pointed out that transition to EVs will reduce emissions in India.
He stated that 80% of lithium resources are tied up by one country and 88 per cent of processing of lithium is also in one country.
He stated, “We are lucky that we have some lithium reserves in Jammu.” He suggested the need to shift away from lithium to other chemistry (of batteries).
“The research is going on in sodium ions. If that works fine. Alternative chemistry is absolutely essential. Once you have alternative chemistry, you have security of the supply chain (of storage). Supply chain issues are strategic issues,” he said.
Singh also pointed towards high power demand of 16% in the first fortnight of October.
“My power demand is growing hugely. In August the (power) demand grew at 20% as compared to August last year. In September it again grew at 20%. In October, the past fourteen days, it has grown by about 16%,” he said.
He also stated that the Indian economy is the fastest growing large economy in the world and will continue to be so in the next two or three decades.
