Rising EV Penetration May Drive Rs. 70,000 Crore Investment In Battery Cell Manufacturing By 2030: ICRA

Highlights
- ICRA estimated an investment of Rs. 70,000 crore by 2030.
Electric Vehicles are believed to be the future of the automotive industry and almost every major automaker has been exploring this space and making investments. The key component driving these EVs is the battery pack which is likely to attract some significant investments as well by the end of this decade. Along with growing EV penetration, the demand for battery cells will also see an upturn and ICRA is estimating an investment of over $ 9 Billion or Rs. 70,000 crore in battery cell manufacturing by 2030.

Shamsher Dewan, Senior Vice President & Group Head - Corporate Ratings, ICRA, said, "In EVs, advance chemistry batteries remain the most critical and the costliest component, accounting for almost 35-40% of the vehicle price. At present, battery cells are not manufactured in India, and thus most OEMs rely on imports, and manufacturing operations in India are limited to the assembly of battery packs. However, to achieve mass scale penetration of EVs and a competitive cost structure, India will need to create its own eco-system of developing battery cells locally. Multiple challenges exist on the road to establishment of a cell manufacturing ecosystem, primary ones being technology complexity, high capital intensity and raw material availability. The ability of battery manufacturers to enter into agreements/alliances with players across the value chain to mitigate these risks, coupled with the creation of a robust framework for recycling would remain key."

According to the report, achieving economies of scale in battery manufacturing will remain critical in lowering the cost of an EV and helping achieve pricing parity. The report further mentions that locating cell manufacturers close to the original equipment manufacturers (OEM) or automakers would allow for the creation of a research and innovation ecosystem, which would aid the development of batteries with improved energy efficiency and which are better suited to Indian climatic conditions. In fact, the Government of India (GoI) recently signed agreements with three companies for incentives under its Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. Even Suzuki is soon coming up with a battery plant in Gujarat which will be used to meet both local and global demand for lithium-ion batteries.
Great Deals on Used Cars
View All Used Cars









Upcoming Cars










Upcoming Bikes










Consider Exploring
Latest News
Related Articles

1 hour ago
The BMW iX1 will make its India debut in the next few weeks

1 hour ago
Tata Motors will provide 24x7 support and Electric Vehicle Support Centres for the Ace EV fleet, which also features a telematics system for real-time tracking and efficient fleet management.

3 hours ago
Hyundai has launched a mild update to the i20 N Line for the Indian market

5 hours ago
This event took place at Yamaha's Surajpur Plant, located in Uttar Pradesh

6 hours ago
The Honda SUV has a whole bouquet of accessories to decorate the exterior as well as the interiors

6 hours ago
This new model features a combination of a 2.9-litre V6 petrol engine and an advanced electric motor

7 hours ago
Ahead of its 2026 debut, Lexus will unveil its next-generation EV concept at the 2023 Japan Mobility Show

8 hours ago
This study provides a detailed overview of the automotive retail sector for India.

1 day ago
The Repsol edition models get the Ross White and Vibrant Orange colour scheme reminiscent of the Team Repsol Honda MotoGP bikes.

20 days ago
Featuring pared-down design and styling, the BMW Neue Klasse will comprise a range of all-electric models, including sedans and SUVs.

25 days ago
Indian chess grandmaster R. Praggnanandhaa registered a memorable win at the FIDE World Chess Cup 2023

1 month ago
Ather Energy CEO Tarun Mehta envisions a three-strong scooter lineup for the start-up; next model to focus on comfort and convenience.

1 month ago
TVS Motor Company has given us a sneak peek at the instrument console and other connectivity features of the electric scooter

1 month ago
High charge times and range anxiety remain barriers to mass adoption of electric vehicles, but the Bengaluru-based start-up promises to make EV charging quicker, affordable and profitable with a fundamentally simple approach.
