Indigenous EV Battery Manufacturing Makes India A Global Export Hub: Report
“Indigenous EV battery manufacturing, will increase local EV adoption and make India a large export hub in the world. However, the nation needs to invest over $10 billion to boost cell manufacturing and raw material refining, just to serve the local demand of Li-ion batteries by 2030, and to create 1 million new jobs,” says a new report released by Arthur D. Little (ADL), titled e-Mobility: Cell Manufacturing in India.
The report provides an in-depth view of the status and future of India’s e-mobility journey along with a roadmap of EV value chain to reduce the nation’s dependence on imported lithium-ion (Li-ion) cells and transform it into a self-reliant EV export hub. While India’s Li-ion battery demand will grow from 3 GWh currently to 20 GWh by 2026 and 70 GWh by 2030, 70 per cent requirement are currently imported from China and Hong Kong, says the report.
Barnik Chitran Maitra, Managing Partner, Arthur D Little, India, says “To accelerate India electric mobility growth, the government and the industry ecosystem must collaborate, to nurture a self-reliant, local EV value chain, with established battery manufacturers, OEMs, and start-ups, investing in continuous R&D, partnerships, and global alliances to create a strong supply chain. This, along with demand from customers, will turn India into a global EV powerhouse.”
Though the government’s efforts such as FAME I & II policies and an increase in OEMs, traditional players, new-age start-ups venturing into battery manufacturing are gaining traction, these may not be enough to cater to the growing demand. It is imperative for Indian players to aspire for superior quality and environmental standards to gain eminent brand reputation, which will help India become self-sufficient in cells and position it as a global export hub.
One of the critical industry challenge is India’s limited access to key raw materials like lithium, nickel, cobalt, and manganese, that account for over 80% of cell cost, as natural reserves for these materials are concentrated in a few countries. Besides, India lacks adequate refining capabilities for these materials. Thus, localizing the Li-ion battery supply chain is key to India’s ambition of becoming self-reliant and positioning it as a global EV manufacturer and exporter.
India is at the cusp of driving significant growth opportunities in the battery manufacturing and recycling ecosystems for a sustainable future. A robust, localize`d, EV value chain can provide the strategic impetus in terms of reduction of emissions, savings on raw materials, and offsetting the loss of manufacturing jobs from traditional internal combustion engines (ICE) vehicles - making the country greener, smarter, and contributing to the national productivity.
