One of the essential elements that are costly in EVs has to be the lithium-ion battery packs which account for 45-50% of the total expense. The demand for Li-ion batteries has sky-rocketed around the globe, especially in Southeast Asia which is roaring to become the next EV hub of the world. As per the government of India’s estimates, the country needs 10 GWh of li-ion cells by 2022, about 60 GWh in 2025, and 120 GWh by 2030 which is some serious demand for lithium-ion cells.
Numerous players in the car and energy business have begun to roll out li-ion battery pack production facilities in the country. Prominent people are the following:
- Amara Raja inaugurated a technology hub at its Tirupati factory to manufacture Lithium-Ion cells. Some reports suggest that Amar Raja has invested more than Rs. 20 Crore in developing this hub.
- Exide Industries (NS:EXID) has formed a 75:25 partnership with Swiss-based Leclanche SA to manufacture Li-ion batteries in India. This plant is proposed at Prantij, Gujrat having a capacity of 1.5 GWh.
- TDS Lithium-Ion Battery Gujarat Private Limited (TDSG) has been established in Gujarat by Toshiba Corporation, DENSO Corporation, and Suzuki Motor Corporation to manufacture and provide Li-ion batteries to Maruti Suzuki (NS:MRTI) and Suzuki Motor plant located at Hansalpur. This joint venture proposes about Rs. 140 Crores for this ambitious project.
- Tata Chemicals already has zeroed on a site at Dholera in Gujrat to manufacture materials, Lithium-ion batteries, and battery packs with a proposed capacity of 10 GW per annum and have set aside a whopping Rs. 800 Crores for this plan. The company also plans to open a battery recycling/repurposing unit.
- Amperex Technology Limited, a Japanese company has already purchased land in Haryana to set up a Li-ion manufacturing plant. Reports suggest that the company plans to invest more than Rs. 7000 Crore in the upcoming years to Li-ion batteries for varied applications.
GOI’s PLI Scheme in brief:
The Indian government has pledged Rs. 18100 Crore for storage space and production of electric vehicle batteries (for electric scooters and Electric cars) to encourage the adoption of EVs in India.
The PLI system is aimed to promote the production of electric batteries locally; the moto is to slice the cost down of EVs for our citizens to favor EVs over gasoline-powered automobiles in return for a greener future.