India’s Plan to Reduce Lithium-Ion Battery Imports by 2027
India is working hard to reduce its reliance on imported lithium-ion (Li-ion) batteries. A report suggests that by the financial year 2027, imports will drop to about 20%. Currently, India imports nearly all of its 15 GWh demand for these batteries. However, this demand is expected to increase to 54 GWh by 2027 and 127 GWh by 2030, driven by the rise in electric vehicles (EVs) and renewable energy.
Government Initiatives
To support this shift, the Indian government has introduced several measures. These include the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and Viability Gap Funding (VGF) for Battery Energy Storage Systems (BESS). These policies aim to make EVs and energy storage systems more affordable, with a target of 30% EV penetration by 2030. However, a more realistic expectation is 20% due to current adoption rates and infrastructure.
Cost and Production
The cost of Li-ion batteries has significantly decreased from USD 780/kWh in 2013 to USD 139/kWh in 2023, thanks to technological advancements. To meet the growing demand, India is building large-scale Li-ion battery production facilities. The government has allocated 40 GWh in production capacity through the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme, with an additional 10 GWh to be awarded soon. Many companies are also setting up facilities outside this framework, expected to be operational by 2027.
Doubts Revealed
Lithium-Ion Battery -: A lithium-ion battery is a type of rechargeable battery commonly used in electronic devices and electric vehicles. It stores energy that can be used to power gadgets like smartphones and cars.
GWh -: GWh stands for Gigawatt-hour, a unit of energy. It is used to measure the amount of electricity consumed or produced over time. 1 GWh is equal to 1 billion watt-hours.
EV -: EV stands for Electric Vehicle. These are vehicles that run on electricity instead of petrol or diesel, making them more environmentally friendly.
FAME scheme -: FAME stands for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles. It is a government initiative in India to promote the use of electric vehicles by providing incentives and support.
Viability Gap Funding -: Viability Gap Funding is a financial support provided by the government to make projects financially viable. It helps in covering the gap between the project’s cost and the revenue it generates.
ACC PLI scheme -: ACC PLI scheme stands for Advanced Chemistry Cell Production Linked Incentive scheme. It is a government program in India to encourage the production of advanced batteries by providing financial incentives to manufacturers.
