Shulou(Shulou.com)11/24 Report--

According to a report released Wednesday by market consultancy Arthur D. Little, India will need to invest more than $10 billion in battery manufacturing by 2030 to accelerate the shift to electric vehicles.

Arthur D. Little estimates that India's total lithium-ion battery capacity will increase from the current 3 billion watt-hours to 20 billion watt-hours by 2030. Improving battery production capacity is essential to meet the demand for lithium-ion batteries in the Indian electric vehicle market. Due to a lack of battery capacity locally, India has to import 70% of its lithium-ion battery demand from overseas markets, the report said.

The report said that because of India's heavy reliance on imported batteries and limited local production, the Indian market's acceptance of electric vehicles was "not promising" and "lagged far behind" western markets. High reliance on imports makes India's electric car industry vulnerable to global supply chain disruptions. And battery costs account for 40% of the total cost of electric vehicles, making electric cars more expensive in the Indian market.

India plans to achieve zero carbon emissions by 2070, and clean transport will help it achieve that goal. India's Reliance, Ola Electric Mobility and Rajesh Exports all plan to make batteries in India and claim subsidies from an advanced chemical battery project set up at a cost of 181 billion rupees ($2.2 billion).

Another reason for India's heavy reliance on battery imports is limited access to raw materials such as lithium, nickel, cobalt and manganese, which account for more than 80 per cent of battery costs, the report said. The report said the Indian government should provide tax subsidies, vigorously build battery development parks and promote market investment in raw material refining and battery manufacturing.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.