Dumping Low-quality Batteries To India, India Is Developing Its Own Battery Manufacturing Industry

- Aug 28, 2019-

According to foreign media reports, although the Chinese government has adjusted its subsidies and hopes to push battery manufacturers to move up the value chain, some old battery manufacturers have few buyers in China. As a result, two Indian informed officials said that Chinese battery manufacturers are dumping low-quality batteries for electric vehicles in India.

The first person familiar with the matter said, “China has been subsidizing electric vehicles since 2010. Before that, there were electric scooters with a short cruising range in China, with a speed of 25 kilometers per hour, but now China has stopped on these low-tech electric vehicles. Subsidies. Currently, the Chinese government only subsidizes long-life routes and electric vehicles equipped with high-density batteries. The annual government subsidy standards are still increasing."

One of the people involved in the Indian electric vehicle project said, “The battery technology is changing with each passing day, which has caused Chinese second-tier battery manufacturers to start dumping batteries in India because these battery manufacturers can't find a market in China.” Another person would not disclose The insider of the name confirmed the matter. At the same time, India has accelerated the production and use of hybrid and electric vehicles, and in March this year announced a FAME 2 program costing Rs 1 trillion to expand the number of commercial vehicles, while China’s old battery production Business is just taking advantage of this opportunity.

The National Institute of Research (NITI Aayog) said in a report, "Since batteries dominate the cost of electric vehicles, India should use battery chemistry to optimize cost and performance in the country's environment and temperature. India should encourage To produce batteries, you must master the cost and energy density (size and quality, etc.), life cycle, safety and temperature resistance of the battery to produce the best battery in the world."

India is currently finalizing its plan to build a Tesla-style super factory to develop a domestic battery manufacturing ecosystem. The program includes a range of incentives, such as a preferential financing program, a friendly tax system, and appropriate basic tariff protection.

NITI Aayog's report added, "In view of the development stage of electric vehicles in India, India needs a new import tariff system and will promote 'Made in India' as the goal. The principle of establishing import tariffs will be: Made in India The electric vehicle value chain gives special preferential treatment. The import value of the goods with the lowest added value (such as finished products) is the highest, the import tariff of high value-added goods (such as parts and components) is lower, and the import tariff of the highest value-added goods will be the lowest even. zero."

In order to reduce dependence on overseas crude oil, save foreign exchange, and control pollution in major cities, India plans to invest Rs 500 crore to build lithium-ion batteries and build India into a global manufacturing center for electric vehicles and their components. In order to protect India's energy needs, the Indian Finance Committee (EFC) has approved plans to build a 50GWh battery plant and will bid in February next year. It is reported that Tesla intends to set up a battery factory in India. Chinese companies BYD and Ningde also expressed interest in Indian battery projects.

According to the most conservative scenario envisaged by NITI Aayog, India will need six battery plants with a capacity of 10 GWH by 2025, and 12 by 2030.