This study aims to highlight the key supply chain barriers in localizing electric vehicle (EV) battery cell manufacturing in India. It summarizes consultations with 12 companies working on battery cell and equipment manufacturing, as well as experts and policy-makers, to determine the crucial challenges and opportunities in localizing battery manufacturing. The report also assesses trade and geopolitical risks and provides targeted policy recommendations to government agencies.
Authors
- Pages
- 55
- Published in
- Canada
- Rights
- IISD, 2024
Table of Contents
- Table 1. Major companies planning cell manufacturing in India 17
- Table 2. Battery cell components and cost breakdown 22
- Table 3. Localization potential of cell components in India 34
- Table 4. Key equipment used in cell manufacturing and its function 36
- Table 5. Localization potential of equipment and machinery used in cell manufacturing in India 41
- Table A1. HS codes and descriptions for key battery manufacturing equipment 51
- Table B1. The localization potential for cell manufacturing machinery and equipment 53
- 1.0 Introduction 11
- 2.0 Current Global Battery Production 14
- 3.0 Current Battery Production in India 16
- 3.1 LiB Production 16
- 3.2 Battery Chemistries 19
- 4.0 Battery Components 21
- 4.1 Definitions 21
- 4.2 Global Production 23
- 4.3 Supply Chain Challenges 24
- 4.4 Geopolitical Challenges 30
- 4.5 Trade and Supply Chain of Battery Components 32
- 4.6 Localization Potential of Cell Components in India 33
- 5.0 Machinery and Equipment 35
- 5.1 Definitions 35
- 5.2 Global Production 37
- 5.3 Supply Chain Challenges 38
- 5.4 Trade Flows of Machinery and Equipment 39
- 5.5 Localization Potential 40
- 6.0 Policy Recommendations 42
- 6.1 Key Recommendations to Bolster India’s Cell Manufacturing Landscape 42
- References 46
- Appendix A. HS Codes and Descriptions for Key Battery Manufacturing Equipment 51
- Appendix B. Localization Potential of Cell Manufacturing Machinery and Equipment 53
- Figure 1. EV sales and penetration rate (globally and in key geographies) 11
- Figure 2. Two- and four-wheeler EV sales in India 12
- Figure 3. Geographical distribution of the EV battery value chain (2023) 14
- Figure 4. The forecasted future battery chemistry mix in India vs. global counterparts 19
- Figure 5. Components used in LiB manufacturing 21
- Figure 6. Cost breakdown of components for LFP and NMC batteries 23
- Figure 7. Lab-to-vehicle qualification timelines 26
- Figure 8. Announced LiB manufacturing capacity and expected demand in 2025 31
- Figure 9. India’s LiB cell imports 32
- Figure 10. Top five sources of battery component imports to India, 2022 33
- Figure 11. Cell manufacturing equipment across the EV value chain 35
- Figure 12. Key equipment suppliers by region 38
- Figure 13. Imports of key LiB machinery and equipment in India (trade value, USD million) 40
- Figure 14. Global share of scientific publications and patent applications by country/region 42
