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India's EV Battery Push: Local Production Incentives Planned
30 May
Summary
- India plans new incentives for battery component production.
- Government aims to reduce import dependence for EV batteries.
- Focus on developing domestic supply chains for cathode and anode.
India is actively developing new incentive schemes, encompassing tax support and outcome-linked programs, to accelerate local manufacturing of electric vehicle battery components. This strategic initiative seeks to diminish import dependency for crucial EV battery parts and bolster domestic supply chains for key materials such as cathode and anode.
The Ministry of Heavy Industries currently oversees a significant production-linked incentive scheme for Advanced Chemistry Cell (ACC) battery manufacturing. Projections indicate India will require substantial quantities of anode and cathode active materials by 2030 to meet growing domestic battery production needs, which are largely import-dependent.
Industry representatives have also requested import concessions and highlighted an 'inverted duty' anomaly where finished products face lower duties than raw materials, increasing input costs. The government is considering these concerns, forwarding requests for import duty exemptions on essential capital equipment to the Finance Ministry.
