India Is About To Start Bidding For Lithium-ion Battery Project

- Nov 22, 2019-

India is about to start a bidding for a lithium-ion battery project to build a 50 GW lithium-ion battery capacity in India, which is a further increase than the 40 GW previously proposed.

According to a senior official of the Indian government think tank NITIAayog, in an interview with the local media, the government will consider introducing financial incentives such as subsidies and tax cuts within a week, including the reduction of import and export taxes for successful bidders for up to 8 years, the lowest replacement. Measures such as halving taxes.

To ensure the timely establishment of the desired lithium-ion battery manufacturing base, it is expected that the government tender and project completion schedule will be very strict.

According to official reports, "NITIAayog must complete the bid within six months of the approval of the cabinet. The winning bidder must establish production facilities by 2022, and then they will receive incentives for 8 years, that is, until 2030."

The government has sought advice from states on cooperation between land supply and battery manufacturers. Overall, the government may identify 5-20 locations, and companies interested in bidding will be invited to set up battery factories in the finalists.

The Indian Energy Storage Alliance expects the Indian energy storage market to increase to more than 300 GWh by 2025. Almost all lithium-ion batteries in India currently rely on imports. Therefore, India hopes to reduce its dependence on imports by building a lithium-ion battery manufacturing base.

In addition, the Indian government's goal is to ensure that electric vehicles account for 30% of car ownership by 2030.