Author: Siddharth PriyadarshiPublish Date: Thu, 01 Sep 2022 05:53 PM (IST)Updated Date: Thu, 01 Sep 2022 05:53 PM (IST)
New Delhi, Agency: Batteries are being used extensively in electric vehicles, mobile phones, laptops and many electronic devices today. Its use is likely to increase further in the future. In view of this, companies are also emphasizing on large scale battery cell manufacturing. Credit rating agency ICRA has released a report, in which it has been told that due to increasing demand year after year in future, by 2030, investment of about $ 9 billion (about Rs 70,000 crore) can be seen in cell manufacturing.
The report further states that the estimated demand for electric vehicle batteries is expected to increase from 15 GW to 60 GW during this period. The battery manufacturing segment is very important for the entire EV ecosystem and is gaining attention. In the future, the cost of expensive EVs will come down only because of the reduction in battery cost. In addition, the report said that the country’s charging infrastructure has changed significantly and access has increased.
Battery cell is not manufactured in the country
Shamsher Diwan, Senior Vice President, ICRA, says that at present, the battery is the most expensive component in an EV, accounting for 35-40 per cent of the cost of the entire EV. Currently battery cells are not manufactured in India. OEMs are largely dependent on foreign countries to meet the demand for batteries. Battery manufacturing in India is limited to assembly of battery packs only.
PLI Scheme for Manufacturing of Battery Cells
The Government of India has recently entered into an agreement with three companies under the PLI scheme to develop advanced chemistry cell battery storage. Let us tell you, under the PLI scheme, the government encourages companies by giving them incentives.
Edited By: Siddharth Priyadarshi