The government plans to promote EV adoption by introducing a new PLI scheme for batteries, stated Union Minister R K Singh on Monday.
India aims for net zero by 2070, emphasizing the importance of energy storage. The Union Minister of Power and New & Renewable Energy mentioned a potential new battery PLI scheme. This would complement the existing PLI for ACC batteries approved in May 2021.
The government has introduced a PLI for battery manufacturing and plans to launch another to reduce storage costs. While the West emphasized carbon emission reduction, they didn’t focus on lowering storage costs. The official believes that increasing production volume will reduce storage prices.
In May 2021, the government approved a PLI scheme for ACC batteries with an outlay of INR 18,100 crore, aiming to attract INR 45,000 crore investments. ACCs are advanced storage technologies that store and convert electric energy.
Energy storage will be pivotal given India’s renewable energy goals and net-zero target by 2070. A CII report predicts a 50% CAGR growth in ACC battery demand in India from 2022 to 2030, supported by local manufacturing and supply chains.
Under the PLI-ACC scheme, 50 GWh ACC manufacturing capacity was allocated to four bidders in March 2022. However, one bidder was disqualified, leaving 20 GWh unclaimed. The remaining beneficiaries include Ola Cell Technologies, ACC Energy Storage, and Reliance New Energy Battery Storage. They aim to achieve 50GWh production by 2030.
Dr. Hanif Qureshi mentioned that 30 GWh of the government’s 50 GWh target has been allocated, and the remaining will be released soon. The government anticipates phased commercial production starting this fiscal year.
Union Minister RK Singh emphasizes electric mobility for India’s energy independence. He identifies cost and range as EV adoption challenges in India. The ACC scheme addresses cost, while range issues can be mitigated by enhancing battery chemistries and EV charging infrastructure. Singh points out India’s lithium reserves in Jammu but stresses diversifying from lithium to other battery chemistries due to supply chain concerns.
At the SIAM Annual Convention, Kamran Rizvi discussed government subsidies for EVs under the FAME scheme. While some nations are reducing EV subsidies, India continues to support the EV sector and encourages a subsidy-free approach.
Additionally, the government is advocating for Hydrogen technologies to promote clean mobility.
