India eyes ₹13,000 crore battery component push to reduce reliance on China: Report

India is nearing the rollout of a fresh incentive programme worth up to ₹13,000 crore ($1.37 billion) for manufacturers of advanced battery cell components, Bloomberg News reported, as Prime Minister Narendra Modi’s government seeks to reduce the country’s cost disadvantage against Chinese producers.

The proposed programme is aimed at strengthening domestic battery supply chains and reducing India’s dependence on imports from China, which dominates global battery production. According to people familiar with the programme cited by Bloomberg News, the proposal is expected to be placed before the Expenditure Finance Committee of the finance ministry after consultations between ministries.

India already provides incentives for manufacturing battery cells used in electric vehicles and energy-storage systems. However, domestic cell makers have faced supply-chain bottlenecks, prompting the government to focus on manufacturing the components that go into advanced battery cells.

Five key battery components

According to Bloomberg News, the proposed incentives would cover five major components: anode and cathode active materials, electrolytes, separator film and copper foil.

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Most battery manufacturers in India currently source these components from Chinese suppliers. The government views this dependence as a strategic vulnerability given both economic and geopolitical considerations.

The proposed support is also intended to improve India’s energy security by developing a more complete domestic battery ecosystem, while helping local manufacturers compete with lower-cost Chinese imports.

India’s Ministry of Heavy Industries did not immediately respond to Bloomberg News’ request for comment.

Existing battery scheme faces delays

The proposed programme builds on India’s existing 50-gigawatt-hour advanced battery incentive scheme, which provides support to companies establishing large-scale cell manufacturing facilities.

As of March, 40 GWh had been awarded under the programme to companies including Mukesh Ambani’s renewable energy unit and Ola Electric Mobility Ltd., according to the Ministry of Heavy Industries.

However, companies receiving incentives have faced delays in meeting production milestones. The ministry said in a February 10 statement that recipients had encountered challenges including technology availability, shortages of skilled manpower, delays in critical imported equipment and the “non-availability of upstream components.”

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The difficulties highlight the supply-chain gaps the new component-focused incentive programme is intended to address.

Ola Electric has only recently begun limited cell production and expects to increase capacity to around 6 GWh, according to Bloomberg News. The Tata Group and established battery manufacturers Exide Industries Ltd. and Amara Raja Energy & Mobility Ltd. are also developing or operating cell manufacturing facilities to cater to expected demand, although they are outside the government’s existing aid programme.

The latest proposal comes as India seeks to build domestic capabilities across the battery value chain, from critical components to finished cells, while supporting the country’s broader electric mobility and energy-storage ambitions.

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