Battery part makers may get up to 50% subsidy

New Delhi: The Indian Ministry of Heavy Industries is considering offering up to 50% subsidies and sales-linked incentives to boost domestic production of battery materials and components. This move aims to reduce reliance on foreign imports and build a robust local supply chain. Three possible support models are being assessed by officials, including a 25% subsidy on eligible capital expenditure, coupled with operating incentives of 5% to 18% on eligible sales.

Another option could provide sales-linked incentives of 11% to 37% for five to seven years, without capital assistance. The third model proposes a 50% capital subsidy, disbursed alongside investments. The government expects the scheme's final details to be finalized soon, with the immediate goal of establishing sufficient domestic manufacturing capacity to support at least 50 GWh of annual cell production by 2032.

Eligible battery materials and components include lithium iron phosphate and nickel manganese cobalt cathode materials, graphite anode materials, electrolytes, separators, and battery-grade copper foil. Aluminium foil may be excluded from support, as the existing domestic ecosystem is deemed sufficient. The assistance is anticipated to span various end uses, including electric vehicles, stationary energy storage, and electronics, rather than limiting eligibility to specific applications.