'Rs 33,750 cr needed to meet PLI target of Li-ion cell, battery plants'

BENGALURU: India needs investments up to Rs 33,750 crore to achieve the government PLI target of setting up 50 GWh of lithium-ion cell and battery manufacturing plants, according to an independent study released by the Council on Energy, Environment and Water (CEEW) on Tuesday.

The country requires up to 903 GWh of energy storage to decarbonise its mobility and power sectors by 2030, and lithium-ion batteries will meet the majority of this demand.

Earlier this month, the government had announced that it has established lithium inferred resources of 5.9 million tonnes in Reasi district of Jammu and Kashmir.

The CEEW study - ‘How can India indigenise lithium-ion battery manufacturing?’ - calculates the material and financial requirements and offers a blueprint for the domestic strategy as India’s demand is expected to increase significantly. The analysis is based on the minimum manufacturing plant capacity allocated under the PLI scheme - 5 GWh. These plants will also be energy-intensive, requiring 250 GWh of power annually for a 5 GWh plant and require cheap and reliable power supply.

Rishabh Jain, senior programme lead, CEEW, said, “For a green future, minerals like lithium will be as important as oil and gas are today. It’s in India’s strategic interest to secure not just the mineral, but also set up the required cell and battery manufacturing systems within the country. It will reduce our dependence on other countries in the long run, and power our grid and EV transition.

“This year’s Budget has shown India’s interest in addressing these challenges by eliminating duties on battery manufacturing equipment and providing viability gap funding for battery projects. To scale up domestic lithium-ion manufacturing, India should step up R&D investments, focus on battery cell component manufacturing and reducing material costs, and support recycling to reduce the need for new materials.”