India plans $1.4 billion incentive scheme for battery components

The Indian government is preparing to launch a new incentive scheme worth approximately ₹13,000 crore (roughly $1.37 billion) to boost the domestic manufacturing of advanced battery cell components. The proposal is expected to move to the Expenditure Finance Committee under the Finance Ministry following inter-ministerial consultations.

The incentives are designed to target five critical components: anode active materials, cathode active materials, electrolytes, separator films, and copper foils. By fostering local production of these materials, India aims to strengthen its battery supply chain, enhance energy security, and reduce heavy reliance on Chinese imports.

This initiative follows previous efforts, such as the Advanced Chemistry Cell Production Linked Incentive scheme, which targeted 50 GWh of domestic cell manufacturing capacity. The move comes as India's battery requirements are projected to grow from approximately 28 GWh in 2025 to over 200 GWh by 2030, driven largely by the electric vehicle and battery energy storage sectors.