The battery is an important and most expensive component of an electric vehicle (EV) as it holds one-third of an EV price. Almost all the manufacturers import batteries from other countries in regard, India to finalize the direct subsidy plan for battery manufacturing in India. Read more to know about battery manufacturing for EV.
India to plan direct subsidy for battery manufacturing for EV
To boost the adoption of electric vehicles in the country, the government will invite the global players to bid in December to ‘Make in India’ under the plan with the subsidy benefits for 10 years and will offer a host of incentives such as depreciation and zero import duty.
Battery manufacturing for EV
The government official said, A number of incentives are being looked into to make it attractive for manufacturers to set up facilities, Subsidy proposal is being examined by the Expenditure Finance Committee. It will be taken to the Cabinet soon after that.
Government working on a subsidy plan of Rs 700 crores
Government is working on a subsidy plan of about Rs 700 crores to attract the Indian as well as a foreign company to participate in the domestic manufacturing of batteries. The benefits of 10-year subsidy and zero import duty on Lithium, Iron, Cobalt-based EV Batteries are in the list. It aims to indigenization to 60% by 2025.
NITI Aayog aims 50 GWh of battery manufacturing
As NITI Aayog is aiming for 50 GWh of battery manufacturing and looking for competitive bids will be invited under the ‘Make in India’ plan in December. The project will start from 2020 depending on the production capacity, scale-up plans, and localization. Companies may be expected to commence the operations by 2022 and reaches to complete capacity by 2025.
According to the NITI Aayog, 1-gigawatt-hour = powering of 10 lakh homes + 30,000 EVs battery capacity of 5 GWh per contract (10 players). $1 billion is the expected investment for 10 GWh capacity factory.
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