Lithium Batteries in Electric Mobility
The Ministry of Mines has established Khanij Bidesh India Limited (KABIL), a joint venture company focused on securing battery minerals, with equity contributions from National Aluminium Company (NALCO), Hindustan Copper Limited (HCL), and Mineral Exploration and Consultancy Limited (MECL).
KABIL’s primary mission is:
- Identify and acquire overseas mineral assets of critical and strategic importance
- Focus on minerals like Lithium, Cobalt, and others
KABIL has signed an Exploration and Development Agreement with CAMYEN. It is a state-owned enterprise of the Catamarca province in Argentina. This agreement is for the exploration and mining of five lithium blocks in Argentina. Additionally, KABIL is actively engaging with the Critical Mineral Office in Australia to secure critical and strategic mineral assets.
On 12th May 2021, the Government of India approved the Production Linked Incentive (PLI) scheme for the National Programme on Advanced Chemistry Cell (ACC) Battery Storage (PLI ACC scheme). This initiative aims to establish manufacturing facilities for Advanced Chemistry Cell (ACC) Battery Storage in India, reducing dependence on imported ACC by boosting domestic manufacturing capabilities. The scheme seeks to incentivize large domestic and international players to create a competitive ACC battery production ecosystem in India.
Budget
The budgetary outlay for the scheme is INR18,100 crore. Chiefly, it will target a cumulative capacity of 50 GWh over five years following a two-year gestation period. The scheme offers incentives based on the subsidy per kWh. The beneficiary firms quote this subsidy and the percentage of value addition achieved in actual sales by manufacturers. It is important to realize that the beneficiary firms must achieve at least 25% value addition at the Mother Unit Level. This should be within two years from the appointed date (Milestone-1) and increase it to 60% within five years (Milestone-2). Performance evaluations and incentive disbursements will begin once Milestone-1 is achieved. Further details are available at: https://heavyindustries.gov.in/pli-scheme-national-programme-advanced-chemistry-cell-acc-battery-storage.
The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II (FAME II) was implemented on 1st April 2019 for five years, with a total budgetary allocation of ₹11,500 crore. Under FAME II, the Phased Manufacturing Programme (PMP) was introduced to promote domestic manufacturing of electric vehicles, their assemblies, subassemblies, and parts, thereby increasing domestic value addition. Details of the scheme are available at: https://heavyindustries.gov.in/fame-ii.
On 15th September 2021, the government approved the Production Linked Incentive (PLI) Scheme for the automobile and auto component industry in India. This scheme has a budgetary outlay of INR25,938 crore. It aims to enhance India’s manufacturing capabilities for Advanced Automotive Technology (AAT) products, including electric vehicles. Also, it provides financial incentives for domestic manufacturing of AAT products. Consequently, this requires a minimum of 50% Domestic Value Addition (DVA). Additionally, it seeks to attract investments in the automotive manufacturing value chain. Further details are available at: https://heavyindustries.gov.in/pli-scheme-automobile-and-auto-component-industry.
References & Related articles:
- Press Information Bureau India – Lithium Batteries in Electric Mobility
- International Institute for Sustainable Development – Lithium Sourcing Roadmap for India
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