News Brief
Government Considers New Production-Linked Incentive Scheme To Boost Battery Production: Union Minister R K Singh
Union Minister of Power, New and Renewable Energy R K Singh. (Picture via X)
The Indian government is poised to introduce a new production-linked incentive scheme aimed at reducing costs and advancing the adoption of electric vehicles (EVs) in the nation, as per a report by The Economic Times.
Union Minister R K Singh made this announcement during the EV Ready India Dashboard event organised by the OMI Foundation.
He stressed the importance of increasing battery and storage production, asserting that achieving higher production volumes is the key to driving down storage costs.
Singh also acknowledged that the limited global battery manufacturing capacity has been a significant contributor to the high prices of batteries.
Furthermore, he highlighted the persistent challenges of high costs and limited driving range that have hindered the widespread adoption of EVs.
In May 2021, the central government approved a production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery manufacturing, with an estimated budget of Rs 18,100 crore.
The primary goal of this initiative was to attract both foreign and domestic investments amounting to Rs 45,000 crore, with the aim of achieving a battery storage manufacturing capacity of 50 GW.
ACCs represent a new generation of advanced energy storage technologies capable of storing electric energy in various forms and converting it as needed.
Singh emphasised the paramount importance of transitioning to electric mobility in India. He underscored that the shift towards EVs will lead to reduced emissions and enhance the nation's energy independence.
The minister also pointed out that a significant portion of global lithium resources and processing is dominated by a single country. Nevertheless, India is fortunate to have lithium reserves in Jammu.
Singh further stressed the need for exploring alternative battery chemistry, such as sodium ions, to ensure a secure supply chain.
Singh drew attention to the remarkable surge in power demand, with a 16 per cent growth during the first half of October. This growth serves as a testament to the country's robust economic expansion.
India's installed power generation capacity is projected to reach 800 GW by 2030, with a commitment to ensuring that 65 per cent of the capacity is derived from non-fossil fuel sources.
Singh also reiterated India's pledge to reduce emission intensity by 45 per cent by 2030.
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