From The Economic Times · Twesh Mishra · · 1m 10s
Battery makers may get 50% capital subsidy
India's government plans up to 50% capital subsidies for battery component makers to boost local production.
In brief
India's government plans up to 50% capital subsidies for battery component makers to boost local production. India may offer up to 50% capital subsidies to battery component manufacturers to reduce import dependence and build domestic supply chains by 2032. Originally reported by The Economic Times.
Government considers capital subsidies
The ministry of heavy industries is considering capital subsidies of up to 50% to accelerate domestic manufacturing of battery materials and components.
Three subsidy models proposed
The ministry weighs three support models: 25% capital subsidy with 5-18% sales incentives, 11-37% sales incentives over five to seven years, or 50% capital subsidy with investment disbursement.
Target for 2032
The immediate goal is building domestic component manufacturing capacity to support at least 50 GWh of annual cell production by 2032.
Components covered
The incentives will cover lithium iron phosphate and nickel manganese cobalt cathode materials, natural and synthetic graphite anode materials, electrolytes, separators and battery-grade copper foil.
Cost disadvantage
Indian manufacturing costs are 18% to 61% higher than landed Chinese benchmark prices for battery components.
Copper foil supply issue
Chinese companies account for 80% of global copper foil capacity, with South Korean manufacturers holding 20% share.
The takeaway
India may offer up to 50% capital subsidies to battery component manufacturers to reduce import dependence and build domestic supply chains by 2032.
