ACC battery market demand in India to grow at a CAGR of 50% : CII Report
CII Releases Report on ‘Raw materials for Battery & Component Manufacturing’
The advanced chemistry battery market demand in India is expected to grow from 20 GWh in 2022 to around 220 GWh by 2030 at a compounded annual growth rate of around 50%. This growth is expected to be supported by the thriving local battery manufacturing industry and a robust local supply chain. As a result, India is expected to localize the significant portion of the entire value chain from material processing to pack assembly and integration, said a CII report on ‘Raw materials for Battery & Component Manufacturing’ released today. The report, done in collaboration with 6Wresearch, is third in a series of report on ‘Roadmap for Future Mobility 2030’.
“EV is determined primarily by the battery running the powertrain of the vehicle. Advancements in the battery technology space is pivotal for development of better performing EVs,” said Mr Vipin Sondhi, Chairman, CII National Committee on Future Mobility and former CEO & MD, Ashok Leyland and JCB.
He added, “It is imperative for India to not only strengthen the national battery raw materials and manufacturing set-up but also to become the global trusted supplier of high-quality, innovative battery materials to counter the Chinese supremacy in the domain.”
Commenting on the report, Mr Vikram Handa, Chairperson – CII Core Group on Raw Materials for Battery and MD, Epsilon Carbon, said, “This report will explore the current state and prospects of the Li-ion battery industry, with a particular focus on India's position in the global market and examine the demand of various components of a Li-ion battery, including the cathode, & anode and analyse the raw materials used in their production, such as lithium, cobalt, nickel, manganese, and graphite”.
Some of the key recommendations from the report are:
Several raw minerals such as cobalt, nickel, lithium and copper have a negligible reserve, production, and refining capacity in India. This may be done by incentivizing development of domestic mines. In addition, custom duty of critical minerals used in battery manufacturing may be lowered, incentivize establishment of mineral processing plants to extract required minerals.
Batteries currently account for ~45% of the overall cost of an EV. While battery costs are declining rapidly, it will remain to be the most critical component of the EV supply chain and would continue to dictate the future of the adoption of the electric vehicle in India. In this regard, report suggests domestic demand creation by way of tax breaks, subsidies etc.
India needs a battery chemical processing industry at par with several other stages of battery manufacturing and various measures in form of incentives, exemptions from various taxes etc. This may be done by way of incentives from the government, additional funding for R&D, collaboration with countries with advanced technology for technological collaboration and simplification of the regulations related to chemical industry- obtaining licenses, environmental clearances, and other approvals etc
Establishing a framework or standards & certification processes for batteries & battery components manufactured in India.
12 August 2023
New Delhi