Niti Aayog seeks Cabinet approval for 10 li-
ion batteries gigafactories
The Niti Aayog seeks Cabinet approval for a proposal to establish up to 10 large lithium-ion factories. The lithium-ion batteries are used in electric vehicles. Once the Cabinet approves the proposal, the Niti Aayog will invite bids for setting up these gigafactories. The gigafactories will have a total capacity of 50 Gigawatt hours (GWh) over 10 years. Cabinet approval for 10 li-ion batteries for local manufacture.
Cabinet approval for 10 li-ion batteries
This project will cost as much as $5 billion (Rs 35,500 crore) and it is the part of the government’s push to promote the use of electric vehicles. Due to the lack of lithium reserves in India, it imports the lithium-ion batteries from other countries. This becoming a high battery cost issue and more than half of the cost of an EV is due to costliest battery. If we start manufacture locally it will help in bringing down the cost of EVs making it more affordable to the consumers.
The finance ministry is already okay with this proposal of offering Rs 700 Crore a year in subsidies to battery makers which will start from 2022.
“Faster rollout of battery manufacturing in India is a prerequisite for successful electric vehicle mission,” the official said.
As per the proposal, the battery manufacturers will be allowed to avail get entire depreciation in one go. There will be also duty-free imports of lithium, iron and cobalt will be allowed to power the advanced cell chemistry in place of the traditional lead batteries.
A few months back, the government announced that it is planning to build a battery-making capacity of 40 gigawatts (GW) for the development of Electric Vehicles (EVs) and renewable energy.
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