Wednesday, May 25, 2022

Industry demands incentives for raw material suppliers to develop India’s battery-making ecosystem - BusinessLine

Last updated Saturday, October 9, 2021 06:21 ET , Source: NewsService

Niti Aayog believes battery makers who benefit from the proposed PLI scheme will pass on benefits to raw material suppliers

The ecosystem for manufacturing advanced batteries is gearing up to seek government support to develop a vibrant process industry that can supply the much-needed raw material at competitive cost.

PLI scheme for manufacturers

The government recently approved a performance linked incentive (PLI) scheme for ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of 50 Giga Watt Hour (GWh) of ACC and 5 GWh of “niche” ACC with an outlay of 18,100 crore. However, it hasn’t announced incentives for key raw material suppliers.

The processing industry, which supports battery makers, needs a host of raw materials such as graphite, cobalt, lithium, nickel, binder, manganese, copper and aluminium. These are converted into anodes, cathodes, electrolytes, separators and collectors to produce lithium-ion cell controls and circuits.

Also see: Recycling lithium-ion batteries for the EV era

India has abundant graphite and manganese but needs the technology to convert the mineral to battery materials.

Suppliers left behind

Vikram Handa, Managing Director, Epsilon Carbon, told BusinessLine that the government intends to save 75,000 crore of forex by commissioning battery storage facilities in India, but will end up with forex outgo of 40,000 crore as this industry has to import the requisite raw material to make...

Read Full Story: https://www.thehindubusinessline.com/economy/policy/industry-demands-incentives-for-raw-material-suppliers-to-develop-indias-battery-making-ecosystem/article36913423.ece

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