India Proposes $1.37 Billion Battery Component Incentive Program Amidst Growing Demand
India is set to launch a new incentive program for battery cell component manufacturers valued at $1.37 billion. This initiative aims to enhance domestic battery production capacity and reduce reliance on imports, with a projected increase in battery requirements from 28 GWh in 2025 to over 200 GWh by 2030.
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India plans to introduce an incentive program for advanced battery cell component manufacturers worth USD 1.37 billion. The program aims to support local production of anode and cathode materials, electrolytes, separator film, and copper foil, addressing the country's reliance on imports, particularly from China.
Previously, the Advanced Chemistry Cell Production Linked Incentive scheme targeted 50 GWh of domestic capacity, but only a fraction was operational by late last year. In contrast, other regions such as Germany have introduced rules enabling additional home battery capacity to participate in energy markets, while Saudi Arabia has set a low procurement price record for BESS.
The long-duration energy storage scheme in the UK has raised concerns about its impact on short-duration BESS projects. The evolving landscape indicates varying risks and opportunities across different markets.
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