India Seeking Bids for Battery Production Initiative
India intends to request bids for an incentive programme of 80 billion rupees ($960 million) to promote the development of batteries for electric vehicles. The program's successful bidders will have to establish 20 gigawatt-hour advanced chemistry battery factories overall, according to the persons who asked not to be identified since the plans are confidential. Next month, they claimed, the government will invite proposals from possible investors.
During a meeting with government officials for consultation, companies expressed interest, including LG Energy Solution Ltd. of Korea and major local players including Mahindra & Mahindra Ltd., Amara Raja Energy & Mobility Ltd., Exide Industries Ltd., and Larsen & Toubro Ltd. Companies who sell locally made batteries will receive incentives from the government over a five-year period.
Reliance Industries Ltd., Ola Electric Mobility Pvt., and Rajesh Exports Ltd., owned by billionaire Mukesh Ambani, were chosen last year to create 30 gigawatt hours of battery capacity and get incentives under this government program's first phase. In response to the expanding markets for electric vehicles, grid-scale energy storage, and consumer electronics, research centre RMI India and government think tank Niti Aayog released a paper predicting that the demand for batteries will reach 260 gigawatt hours by 2030.
The battery push coincides with India's efforts to promote the use of less-polluting modes of transportation. The government of Prime Minister Narendra Modi is thinking of lowering import duties on battery-powered vehicles in an effort to court Tesla Inc. Additionally, the government plans to increase domestic EV production with a $3.1 billion incentive programme that will be introduced in 2021.