The proposed incentive scheme aims to reduce import dependence and strengthen India’s battery manufacturing supply chain.
India is preparing a 120 billion incentive scheme to support domestic manufacturing of critical battery components, as the country looks to strengthen its local battery supply chain and reduce import dependence, according to Economic Times.
The proposed scheme will support manufacturing of cathode active materials (CAM), anode active materials (AAM), electrolysers, and copper foil separators—key inputs for advanced chemistry cell battery production. At present, India remains heavily dependent on imports for these components.
“The battery component incentive scheme is in final stages of approval,” an official told Economic Times, adding that the financial support will come with conditions to encourage local manufacturing and supply chain development.
“We don’t want companies to import end products or perform only last-stage processing and claim incentives,” the official said.
The scheme is expected to complement the government’s existing a 181 billion production-linked incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery manufacturing.
Industry estimates suggest India will need over 200,000 tonnes of AAM and more than 400,000 tonnes of CAM by 2030 to support around 223 GWh of domestic battery manufacturing capacity.
The move is expected to accelerate localisation as demand for EV and energy storage batteries rises in India.
