The demand for ACC batteries is poised to surge from 20 GWh in 2022 to approximately 220 GWh by 2030, translating to a remarkable compound annual growth rate (CAGR) of about 50 percent, according to a report by the Confederation of Indian Industry (CII).
This robust growth projection is underpinned by a thriving domestic battery manufacturing industry and a robust local supply chain.
The report titled 'Raw materials for Battery & Component Manufacturing' also highlights India's ambition to localise a significant segment of the entire value chain, encompassing material processing, pack assembly, and integration. This localisation drive aims to reduce dependency on imports and strengthen the domestic battery manufacturing ecosystem.
Vipin Sondhi, Chairman of CII National Committee on Future Mobility, stressed the crucial role of battery technology advancement in shaping the future of electric vehicles (EVs). He emphasised that the growth of EVs significantly hinges on battery performance enhancements.
The report addresses the need for India to bolster its battery raw materials and manufacturing capabilities to compete globally, specifically countering China's dominance in this field. Recommendations from the report include incentivizing domestic mining, lowering custom duties on critical minerals used in battery manufacturing, and establishing a battery chemical processing industry at par with other battery manufacturing stages.
Additionally, the report suggests fostering domestic demand for EVs through tax breaks, subsidies, and creating a framework for standards and certification processes for batteries and components produced within India.
Vikram Handa, Chairperson of CII Core Group on Raw Materials for Battery, emphasised that the report delves into India's position in the global battery market, exploring the demand for various battery components and analyzing the raw materials involved.
As India strives to enhance its electric mobility landscape, this CII report provides valuable insights and recommendations for steering the growth of the ACC battery market and related industries.
(Edited by : Pradeep John)
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