Automotive Battery Manufacturers in India
Amara Raja Batteries is one of the largest automotive battery manufacturers in India. Located in Tirupati, Andhra Pradesh, this company has invested over Rs200 million in setting up a lithium-ion cell technology hub. In addition, it has signed a technology transfer agreement with the Indian Space Research Organisation, which will help it develop lithium-ion cells in India. The company plans to invest the remaining $1 billion in expanding its manufacturing base in the country.
Ather Energy’s new facility in Hyderabad will focus on lithium-ion battery manufacturing, with a capacity of 120,000 battery packs per year. The company, which sells sedans, hatchbacks, and sport utility vehicles in India, has filed 13 patents on its lithium-ion battery packs. The company will procure its battery packs through a newly formed joint venture with Toshiba and Denso. The firm also manufactures lighting equipment and other components to power electric vehicles.
In a recent article in the Economic Times, the Indian government announced incentives to develop local EV battery manufacturers. The Government of India allocated Rs 180 billion to advance cell chemistry and ten sectors. Since these initiatives are intended to help Indian companies become more competitive and increase exports, it makes sense to invest in local battery manufacturing. The benefits of local manufacturing are plentiful. For example, jobs and investment are generated locally. These benefits are well worth the effort.
While many foreign companies have entered the lithium-ion production business, India has not been the leader in this technology. The Indian Space Research Organization, a government agency, has recently transferred lithium-ion technology to 10 firms. While the country has not been at the forefront of innovation in the field of battery development, the government is looking to encourage the development of the local industry to become self-reliant. So, there are many benefits to localizing EV batteries in India.
While India is an emerging market for electric vehicles, it faces significant challenges. The industry is largely reliant on foreign technology and materials. However, some local suppliers of lithium-ion batteries are in demand in the global marketplace. There is no shortage of domestic sources of these materials. Currently, there is an abundance of bauxite in eastern India. In addition, India has a good supply history in lithium-ion.
Besides the major companies, the Indian government is also working closely with EV battery manufacturers. Its government-sponsored EV research and development is essential for developing an ecosystem to support local EV battery manufacturing. In addition to developing batteries, the government must also help EV manufacturers make their products. In this regard, Indian lithium-ion producers should work with domestically-based automakers and SMEs. The companies must partner with a number of EV OEMs to ensure that they have a global presence.
In addition to BHEL, there are several other lithium-ion battery manufacturers in India. In particular, Exide is a large player, with a significant stake in Leclanche Energy. In July, the company invested in a local lithium-ion battery manufacturer, and it has increased its stake in the company. Amarraja’s ambitions include manufacturing batteries for the domestic market. This company is a strong competitor in the EV industry.
Moreover, the Indian government must consider the lithium-ion battery industry, which is highly dependent on imported lithium. Despite this, India has a large amount of lithium-ion reserves, and this is expected to support the local industry with R&D and tax breaks. This is one of the key factors for the country to become the EV batteries manufacturing hub. And as a result, India can become Atmanirbhar when it comes to its EV battery requirements.
Currently, India’s electricity needs can be met through imported lithium-ion batteries. These batteries are not made in India, and need to be imported. As a result, India will have to import them. The government should encourage local manufacturers by providing a tax break and a tax incentive. Further, it should also encourage recycling, which will ensure the availability of a steady supply of EV batteries. These components are currently imported from other countries.