Foreign technologies needed for India’s battery cell investment boom

In March, India announced the Production-Linked Incentive Scheme (ACC PLI) for advanced chemical cells and awarded four companies an award to encourage local cell manufacturing within a capacity of 5-20 GWh. Reliance and Ora Electric are actively investing in battery cells, but it remains questionable how the other two companies plan to invest in cells.

To build a local battery cell ecosystem for energy storage and EV demand, the Government of India under ACC PLI, Rajesh Exports, Hyundai Global Motors, Ola Electric, and Reliance New Energy Solar 5GW, 20GW, 20GW, respectively. And awarded 5GW.

Reliance has been actively investing in battery cells long before the PLI scheme. The conglomerate has announced Rs. 750 billion (US $ 9.39 billion) to build four giga-scale factories for solar, hydrogen, fuel cells and energy storage. Ambri, a manufacturer of liquid metal batteries.

In other words, the Reliance is equivalent to acquiring mature or future battery technology suitable for the Indian market and energy storage business, even though it is allocated only 5GW of subsidable capacity under ACC PLI. We are using a lot of financial resources.

Meanwhile, Ora Electric opened an R & D center in the UK in February. It also invested in Israel-based StoreDot and planned to use fast charging technology in India in March. In addition, Ora Electric announced a self-developed lithium-ion battery cell, announced a US $ 500 million R & D center in Bangalore in July, and plans to start operations by August.

Meanwhile, despite the investment plan of Rs. 500 billion in EV announced in May, Rajesh Exports does not elaborate on how Fortune Global 500 companies will work on their cell investment plans. Rajesh Exports is not engaged in the manufacturing of automobiles and auto parts, has not established a battery cell R & D center, and has not invested in or acquired a battery technology company. According to Bloomberg data, the latest acquisition by Rajesh Exports was in 2015 and the target was engaged in precious metal refining.

Mid-July, Economic Times Hyundai Motor Co., Ltd., also based in South Korea, is a subsidiary, group company or affiliate of Hyundai Motor Co., Ltd. or Hyundai Motor Co., Ltd., which is also based in South Korea and is eligible for a capacity of 20 GW under ACC PLI. He reported that he denied that. According to the report, the Government of India is reconsidering a proposal to establish a battery manufacturing facility from Hyundai Global Motors. If Hyundai Global Motors is disqualified, the next companies on the waiting list may win the slot and only Indian companies may be participating in ACCPLI.

Driven by the rapid growth in demand for EVs and energy storage, battery cell technology has become essential in many countries and the Government of India is seeking to attract investment through incentive schemes. Some companies started investing in cells long before the PLI scheme, while others seem to see the attractiveness of subsidies outweigh the battery business opportunities themselves. Foreign technologies needed for India’s battery cell investment boom

Back to top button