India : Cabinet approves 5-year plan for EV battery manufacturing

Aiming to localize production across the entire electric vehicle (EV) value chain, the government will support battery manufacturing at Giga-scale. The initial focus will be on large-scale module and pack assembly plants by 2019-20, followed by integrated cell manufacturing by 2021-22.

The government of India has approved setting up of National Mission on Transformative Mobility and Battery Storage to drive “clean, connected, shared and sustainable mobility initiatives in the country.” The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.

The cabinet also approved creation of a Phased Manufacturing Programme (PMP) to support setting up of large-scale, export-competitive integrated batteries and cell-manufacturing Giga plants in India, along with another programme to localize production across the entire electric vehicles (EVs) value chain.

Both the phased manufacturing programmes will be valid for 5 years till 2024.

To implement battery manufacturing at Giga-scale, the National Storage Mission will initially focus on large-scale module and pack assembly plants by 2019-20, followed by integrated cell manufacturing by 2021-22. It will prepare the necessary roadmap for India to leverage upon its size and scale to produce innovative, competitive multi-modal mobility solutions that can be deployed globally in diverse contexts.

The Mission, chaired by CEO NITI Aayog, will comprise of secretaries from Ministry of Road Transport and Highways, Ministry of Power, Ministry of New and Renewable Energy, Department of Science and Technology, Department of Heavy Industry, Department for Promotion of Industry and Internal Trade, and Director General, Bureau of Industrial Standards.

Welcoming the Cabinet’s decision, Debi Prasad Dash, Executive Director of India Energy Storage Alliance (IESA) told pv magazine: “The representation of 8 ministries and departments will definitely bring appropriate co-ordination on appropriate policy creation.”

“India has a significant market potential for batteries and electric vehicles. Electric vehicles are creating a big demand and due to this demand, the cost of batteries will further come down. IESA estimates the market for energy storage would grow to over 300 GWh during 2018-25. It is working with various EV and charging infrastructure companies through its MOVE (Moving Onwards with Vehicle electrification) initiative to catalyze the adoption through indigenous manufacturing of EV components,” he added.

“Currently, more than ten companies are engaged in module and Li-ion pack assembly in India and we expect 4-5 large companies to enter cell manufacturing in the next 2-3 years. With appropriate policy support through this mission, Indian companies will be able to diversify into energy storage business,” Dash shared with pv magazine.

“Through Make In India initiative, India will able to compete with China, Australia, Germany, USA, Taiwan, South Korea and other Li-ion manufacturing countries,” he added.



Smart Grid Bulletin May 2019

View all SMART GRID Bulletins click here