The Union Minister for Science & Technology recently revealed key insights about the import of lithium-ion (Li-ion) batteries in India during the 2020-21 budget session. The details shared shed light on significant aspects such as the volume and cost of imports, the origin of imports, India’s own manufacturing capabilities and various government initiatives to boost homegrown production.
Imports by Volume
In recent years, India has seen a spectacular increase in its imports of Li-ion batteries. In 2016, around 175 million units were imported which increased to 313 million in 2017. There was more than a two-fold hike in 2018 with imports standing at 712 million. However, the figure marginally dropped to 450 million in 2019.
Cost of Imports
The cost of importing Li-ion batteries has also surged over the years. The country’s import bill for these essential products has tripled between 2016 and 2018. From ₹2,600 crores in 2016, it escalated to ₹6,500 crores in 2019.
Origin of Imports
India sources its Li-ion batteries primarily from China, Japan, and South Korea. The country stands among the largest importers of these batteries globally. China commands a major share of the Li-ion battery market with around three-fourths of the global battery cell manufacturing capacity under its control.
Manufacturing by India
Although the Indian Space Research Organisation (ISRO) does manufacture Li-ion batteries, the volume is limited and reserved for space applications.
Need to Increase Manufacturing by India
To counter the heavy dependency on imports and in a bid to become one of the world’s largest electric vehicle manufacturing hubs by 2040, the government has pledged investments worth $1.4 billion. It is anticipated that electric vehicles will drive a substantial share of Li-ion battery demand in India till 2025.
Steps Taken by India
In order to bolster domestic manufacturing, various steps have been taken. In 2018, The Central Electro Chemical Research Institute (CECRI) of CSIR and RAASI Solar Power Pvt Ltd entered into a Memorandum of Agreement for setting up India’s first Li-ion battery project. Additionally, the Indian government has green-lit a National Mission on Transformative Mobility and Battery Storage to promote sustainable mobility solutions.
About Li-ion Batteries
Li-ion batteries are a type of rechargeable batteries that use an intercalated lithium compound as the electrode material. The battery comprises an electrolyte that allows for ionic movement and two electrodes that make up a lithium-ion battery cell. These batteries see wide applications across military, battery electric vehicle and aerospace domains.
National Mission on Transformative Mobility and Battery Storage
This mission aims to encourage clean, connected, shared and sustainable mobility initiatives. It envisions launching a Phased Manufacturing Program (PMP) to localize production across the entire EV value chain for five years until 2024. Headed by the CEO of NITI Aayog, the mission will operate with an Inter-Ministerial Steering Committee. It will collaborate with key stakeholders across various Ministries/Departments and states to integrate different initiatives aimed at transforming mobility in India.
Last Modified: February 7, 2024