Energy storage technologies are predicted to play a major part in the decarbonization of the electricity and transport sectors, which accounted for 49% of India's total greenhouse gas emissions (CO2 equivalent) in 2016. Among the several energy storage technologies available, lithium-ion batteries are anticipated to dominate the market during the upcoming decade (2021 onwards). Peak electricity demand would rise to 334 gigawatts (GW) by fiscal year 2030, with a total electricity generating need of 2,229 Billing units (BU). Thus, decarbonization of the electricity and transport industries is crucial to combating climate change. India unveiled its ambitious national goals for 2030 at the COP 26 UN Climate Change Conference, which include increasing its non-fossil energy capacity to 500 GW by 2030, obtaining 50% of its electricity needs from renewable sources by 2030, limiting projected carbon emissions by one billion tonnes, and lowering its economy's carbon intensity of its economy by less than 45% by 2030. In India, the lithium-ion battery business is anticipated to experience exponential growth over the next five years (2022 onwards), and the recycling market of these batteries is estimated to be nearly 22-23 GWh in 2030. The lithium-ion battery industry in India is predicted to grow from 2.9 gigawatt hour (GWh) in 2018 to about 132 GWh by 2030 (at a CAGR of 35.5%).
Advanced chemistry cell (ACC) batteries are the foundation of future low-carbon transportation and energy systems. With assistance from government initiatives on the supply and demand sides, India's domestic ACC battery manufacturing business is growing significantly. Critical minerals supply chains, including lithium, cobalt, nickel, and spherical graphite refining for active materials, are critical to achieving local value addition in the fabrication of ACC battery electrodes. The discovery of the country's first lithium reserve in Jammu and Kashmir, as well as another significant reserve in Degana, Rajasthan, opens up a major prospect for local lithium production. According to the Geological Survey of India (GSI) and mining officials, the lithium deposits in these reserves are large enough to supply nearly 80% of India's overall demand.
Lithium-ion battery (LIB) manufacturing industry
The cumulative demand for energy storage in India of 903 GWh by 2030, which is divided across many technologies such as lithium-ion batteries, redox flow batteries, and solid-state batteries. The lithium-ion battery market in India is expected to grow at a CAGR of 50% from 20 GWh in 2022 to 220 GWh by 2030. The current focus of Indian enterprises is on battery cell manufacture. However, as more cell manufacturing units are commissioned in India, the upstream process will most likely be the next priority area. These industries include graphite anode and cathode active material manufacture, as well as electrolyte, separator, and current collector manufacturing. These batteries are used in mobile phones, laptop computers, and other similar devices, and their shape and size vary depending on the application.
India can minimise its dependency on imports and assist in increasing resilience in global supply chains by localising the mining and refining value chain of essential minerals. India has joined the US-led Mineral Security Partnership (MSP) to help strengthen crucial mineral supply chains. The collaboration intends to speed up the establishment of varied and sustainable essential mineral supply chains. In addition, government-to-government (G2G) discussions for cooperative exploration and mining are progressing with friendly nations. The Indian government established KABIL to secure a steady supply of crucial and strategic minerals through G2G negotiation and the acquisition of mining assets abroad.
Lithium-ion batteries are electrochemical energy storage systems in which lithium ions serve as a charge carrier between electrodes. The chemistry used for a certain application is determined by a number of parameters, including cost, energy density, cycle life, and the charging rate necessary for the application. Lithium-ion batteries can be classified into the following categories based on battery chemistry (Active Materials):
It has a layered structure for ion mobility with a graphite carbon anode and a cobalt oxide cathode. The Li-cobalt battery’s high specific energy makes it applicable for consumer electronics, such as digital cameras, mobile phones, and laptops.
It creates a three-dimensional spinel structure to increase safety and stability while lowering internal resistance and improving current handling and ion flow. Newer Li-manganese designs have been successful in improving battery longevity, safety, and specific power. It is applicable for medical devices, portable power tools, hybrid and electric vehicles, and powertrains.
An NMC battery contains one of the most successful nickel-manganese-cobalt cathode combinations. An NMC battery, also referred to as CMN, MNC, and MCN, can function as either an energy cell or a power cell. It is mainly used in e-bikes, EVs, medical devices, and industrial.
Rechargeable lithium batteries were created using one of the well-known battery materials when phosphate was discovered to be a cathode material in 1996. It performs effectively in a sequence of four cells that generates a voltage similar to that of a series of six lead-acid cells. It is mainly used in stationary applications with high endurance.
NCA batteries are extensively utilised in EV powertrains due to their high specific energy, excellent specific power, and reasonably long lifespan. It is applicable for EVs, electric powertrains, medical devices, and industrial.
One of the best-performing and safest Li-ion batteries is the lithium-titanate battery. When charging at low temperatures and fast charging, an LTO battery exhibits zero strain and does not generate an SEI (Solid Electrolyte Interface) layer or lithium plating, as opposed to a normal cobalt-blended Li-ion battery. It is applicable in aerospace and military equipment, EVs, electric powertrains, solar-powered street lighting, telecommunications systems, and UPS.
A lithium-ion battery is made up of many modules, each of which is made up of several constituent cells - the basic electrochemical units. In a lithium-ion cell, the cathode active material and anode active material are deposited onto thin metal foils known as current collectors. The cathode is made of aluminium foil, whereas the graphite anode is made of copper foil. To allow the passage of lithium ions, a liquid electrolyte is positioned between the electrodes. This electrolyte is typically composed of lithium salts and a solvent. A separator membrane (made of a specially produced polymer, such as high-density polyethylene or polyolefin) is necessary to physically separate the two electrodes while enabling ions to pass through unhindered.
Key Components for Lithium-Ion Battery Manufacturing
The Lithium-Ion Cell Manufacturing Process
Government initiatives
The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) initiative was introduced as part of this strategy in 2015. The Ministry of Heavy Industries has been implementing the (FAME India) Scheme Phase-II for a five-year period beginning April 1st, 2019, with a total budgetary support of Rs. 10,000 crore (US$ 1.20 billion). This phase primarily focuses on boosting the electrification of public and shared transport, with the goal of supporting 7,090 eBuses, 5,00,000 e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars and 10,00,000 e-2 Wheelers through demand incentives. The budget includes funds for the construction of charging stations as well as up-front incentives to lower the cost of purchasing vehicles.
The government has invested around US$ 2.5 billion in this incentive scheme, which seeks to establish a local manufacturing capacity of 50 GWh of ACC and 5 GWh of niche ACC capacity (planned). The programme intends to improve exports and generate economies of scale, helping big domestic and international manufacturers develop a competitive ACC battery production in India. To receive incentives under the programme, the government has agreements in place with three bidders, namely Reliance New Energy Solar, Ola Electric, and Rajesh Exports.
The Ministry of Environment, Forest, and Climate Change published the Battery Waste Management Rules in 2022 to ensure that battery waste is handled in an environmentally responsible manner.
The regulations stimulate the establishment of new firms and entrepreneurship in the collection, recycling, and repair of spent batteries. By demanding a minimum degree of material recovery from used batteries in the recommendations, new technologies, investments, and business opportunities will be brought to the recycling and refurbishment sector.
MeitY created technology as a part of the "Centre of Excellence on E-waste management" established at the Centre for Material for Electronics Technology (C-MET) in Hyderabad in partnership with the Government of Telangana and business partner M/s Greenko Energies Private Ltd., Hyderabad.
In order to improve the efficient and effective use of resources (public funds, land, and raw materials for advanced cell batteries) for the provision of customer-centric services, NITI Aayog designed the draft of the battery swapping policy. EVs with swappable batteries are eligible for the same incentives as electric vehicles with fixed batteries installed from the factory. According to the proposed legislation, the size of the incentive would be determined by the kWh rating of the battery and compatible EV.
Road Ahead
There is a limited supply of lithium, nickel, cobalt, and manganese precursors, which are all key raw elements needed in the synthesis of active cathode materials for lithium-ion batteries. By 2030, India's LIB cell manufacturing industry will require 193 thousand tonnes of cathode active material, 98 thousand tonnes of anode active material, 91 thousand tonnes of aluminium, 41 thousand tonnes of copper, and 8 thousand tonnes of LiPF6 electrolyte material to produce 100 GWh of batteries. With almost non-existent infrastructure throughout the supply chain and minimal deployment expertise, India must establish greater control over the lithium-ion battery supply chain. Energy storage systems are expected to play a major part in global decarbonization, resulting in an exponential growth in demand. India should make an effort to become a manufacturing powerhouse in addition to trying to satisfy home demand through domestic production. The availability of minerals at reasonable rates will be important to global competitiveness. India's foreign policy must adapt to changing trends and prioritise strategic initiatives in key regions. A concentrated effort on R&D, process optimisation, and recycling can help to lessen the requirement to import cell components from other nations. Academia must immediately begin developing courses and curricula to satisfy the expanding employment demands.