India’s $960 Million bid to Supercharge EV Battery Production
India is initiating a bidding process for an 80 billion rupees ($960 million) incentive program to boost the production of electric vehicle batteries, as disclosed by insiders familiar with the matter.
The initiative requires successful bidders to establish state-of-the-art chemistry battery plants with a combined output of 20 gigawatt hours.
Over a five-year period, the government will provide incentives to companies on the sale of batteries manufactured locally. Those knowledgeable about the matter, wishing to remain anonymous due to the confidential nature of the plans, revealed that the government plans to invite bids from potential investors in the upcoming month.
According to a report by RMI India and the government’s think tank Niti Aayog, battery demand is expected to surge to 260 gigawatt hours by 2030. This surge is attributed to the growing market for electric vehicles, grid-scale energy storage, and consumer electronics. The battery program aligns with India’s efforts to promote cleaner transportation, coinciding with Prime Minister Narendra Modi’s administration’s considerations to reduce import taxes on battery-powered vehicles, specifically targeting companies like Tesla Inc.
Furthermore, the administration is actively supporting domestic electric vehicle production through a $3.1 billion incentive program launched in 2021.