Indian Economy News

An incentive program of US$ 960 million to be introduced by India for Electric Vehicle (EV) battery production

  • IBEF
  • November 15, 2023

India intends to introduce an incentive program with an estimated value of US$ 960 million to foster its Electric Vehicle (EV) ecosystem. This program will invite bids from interested parties, signalling a strategic push towards enhancing the domestic production of EV batteries.

Winning bidders in the program will have to establish 20 gigawatt-hour advanced battery factories; they cannot give their names because the designs are confidential. Next month, the government will solicit offers from possible investors.

Companies including Korea’s LG Energy Solution Limited and local heavyweights such as Mahindra & Mahindra Limited, Amara Raja Energy & Mobility Limited, Exide Industries Limited, and Larsen & Toubro Limited showed interest during a consultation meeting that was held with government officials.

Over a five-year period, the government will provide incentives to businesses for the sale of locally-made batteries.

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 report predicting that the demand for batteries will reach 260-gigawatt hours by 2030.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.