Parliamentary panel pitches for self-dependency in Lithium battery production, Auto News, ET Auto
In its report presented in the parliament on Monday, the parliamentary panel on industry headed by K Keshava Rao felt that there is a lack of an integrated electric vehicle (EV) eco-system.
“EV has three critical components – Batteries, Motor and power electronics. All these are high investment products. In addition, parts such as PCB, LCD/LEDs, Capacitors, Resistors, Diodes, Switches, Transistors, Connectors, Relays continue to be imported from china, Taiwan and South Korea. Ninety per cent of the world’s manufacturing of advanced Chemistry Cell (ACC) is done in China,” said the panel.
It added that USA, Europe and South Korea have made good progress in setting up manufacturing plants of ACC but India is importing its requirement of ACC.
“India doesn’t have manufacturing facility for Lithium ion battery cell. All battery cells used for battery pack used in electric vehicles are imported from China, South Korea, Japan etc. All manufacturers in India are importing cells and assembling battery packs,” the panel found.
In the years to come, secured sourcing of lithium could be unquestionably pivotal to make EVs a success in any country, the panel said.
“However, India does not have enough of lithium reserves for manufacturing lithium-ion batteries. Many experts also consider getting lithium fields in countries, such as, Bolivia or Chile. Securing lithium supply could help to manufacture batteries at a globally competitive price with the potential of reducing the price of EVs,” the committee said in its report.
The EV manufacturers informed the committee that Original Equipment Manufacturers (OEM) would require government support to secure long-term supply of lithium and other strategic minerals for India.
“The committee further recommends that the government should endeavour to achieve self-dependency in manufacturing Lithium-ion batteries to reduce dependency on other countries, especially China for unhindered availability of raw materials used in batteries. The committee also recommends that government should ensure strengthening supply chain network, easy availability and accessibility to raw material and components for batteries, to promote EV adoption,” the report said.