High tech battery innovations may get a PLI push
Premium- New PLI scheme may focus on battery R&D as an important component, offer higher sops
NEW DELHI : India plans to launch a production-linked incentive (PLI) scheme for so-called ‘niche’ batteries to drive research and development of such high technology products, crucial for its ambitious energy transition and carbon neutrality goals, said two government officials aware of the matter.
With local weather conditions impacting battery chemistry as seen in recent instances of electric vehicles catching fire amid a hot summer, the new PLI scheme may focus on battery research and development as an important component. The scheme is likely to give higher incentives to manufacturers compared to the ongoing PLI scheme for advanced chemistry cell (ACC) battery storage, the officials mentioned above said requesting anonymity.
Under the PLI scheme for ACC battery storage, the cash subsidy has been capped at 20% of effective ACC price, net of goods and services tax or the effective sales turnover. Last month, the heavy industries ministry selected Reliance New Energy Solar Ltd, Ola Electric Mobility Pvt. Ltd, Hyundai Global Motors Co. Ltd, and Rajesh Exports Ltd for the ₹18,100 crore PLI scheme for ACC battery storage.
“The government is likely to come up with a separate PLI scheme for ‘niche’ batteries wherein niche means the batteries are still in the advanced stage of research and development and have not been commercialized yet," said one of the officials mentioned above. Government think tank NITI Aayog is in consultations to prepare for the scheme, the official said.
Energy transition and carbon neutrality has come to the fore of policy making with Prime Minister Narendra Modi committing to India achieving net zero carbon emissions by 2070, at the COP-26 summit in Glasgow last November.
Lithium iron phosphate, nickel manganese cobalt, and lithium titanium oxide batteries, which come under the category of lithium-ion batteries, are among the most commercially viable batteries at present. Under the proposed scheme, researchers and companies would look beyond lithium-ion batteries as the government wants to promote the development of newer chemistries for battery manufacturing in the country, the second official said.
Questions emailed to the spokespeople at NITI Aayog and the heavy industries ministry on Tuesday morning remained unanswered till press time.
The quest for new technologies and battery chemistry comes at a time when there is an acute shortage of lithium with India at odds with China, which is a major import source for the mineral. Also, prices of the mineral have soared, impacting downstream industries. India is also making efforts to source lithium from other major producers such as Australia and Argentina.
The efforts have gained momentum amid the government’s ambitious targets to combat climate change and also because of the strong focus on boosting the domestic production of electric vehicles.
“The government seems determined to make India a manufacturing and export hub of batteries. Efforts are on globally for newer chemistry for battery manufacturing as the demand for batteries rise. If the initiative becomes successful, it would provide an Indian company the patent to the chemistry that bodes very well for India’s aim to be cater to the global supply chain," said Amit Kumar, partner and leader power and utilities mining at PwC India.
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The government had come up with the PLI scheme ‘National Programme on Advanced Chemistry Cell Battery Storage’ in June last year to achieve manufacturing capacity of 50 giga watt hour of ACC.
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