IESA to Launch India Battery Supply Chain Council
With the view to developing a holistic ecosystem for the supply chain of batteries, India Energy Storage Alliance (IESA) has been organizing India Battery Manufacturing & Supply Chain summit where India Battery Supply Chain Council (IBSCC) would be launched.
December 09, 2021. By Manu Tayal
The IESA said in a statement that “IBSCC will serve as a common platform for all relevant stakeholders to work on the complete development of the battery supply chain needed to support upcoming giga factories in India.”
Commenting on the development, Dr Rahul Walawalkar, President, India Energy Storage Alliance said, “apart from setting up 4-5 giga factories under the ACC PLI, we need to develop a complete supply chain for availing raw & specialty materials needed for these giga factories so that we are not replacing one co-dependency with other. What we hope to do through India Battery Supply Chain Council is to identify issues, faced by member companies or industry collectively [related to raw materials, material supply or R&D], establish a consortium, so we have a better chance of not just meeting requirements of the Indian giga factories but can also become a supplier for global giga factories being set up in Europe and Americas in the coming decade.”
As per the IESA estimate, India’s battery demand will be over 650 GWh with the manufacturing capacity of 500 GWh by 2035. Up to 20,00,000 jobs creation will be across the EV and Energy Storage ecosystem. To support this ambitious manufacturing plan, this is the critical time to strengthen the energy storage supply chain. The supply chain adds economic and strategic cost due to the importance of the raw materials that are limited available and refined in a few places globally. With opportunity for mining, refining, processing, recycling, urban mining, equipment, and component supply, it creates an opportunity for new entrants, conglomerates to diversify and global companies to set up India plants.
States such as Gujarat, Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Maharashtra, Haryana have announced their EV and energy storage manufacturing policies. Research & Development Sites are in states like Andhra Pradesh, Maharashtra, Kerala, Tamil Nadu, Telangana. Nickel, Cobalt, Aluminum, Manganese, Copper and Graphite are the raw materials available in India.
In a latest development on the National Programme on Advanced Chemistry Cell (ACC) Battery Storage notified earlier, the Ministry of Heavy Industries (MHI) has issued a Request for Proposal (RFP) to invite bidders for setting up greenfield manufacturing facilities under the production-linked incentive (PLI) scheme to promote ACC manufacturing in the country. The PLI scheme envisages setting up a cumulative manufacturing capacity of 50 GWh for ACCs and an additional cumulative capacity of 5 GWh for niche ACC technologies. The programme offers fiscal benefits in the form of cash incentives to selected bidders, who commit to setting up an ACC manufacturing facility of a minimum 5 GWh capacity. Also, these projects must witness a minimum value-addition of 25 percent within 2 years and 60 percent within 5 years from the appointed date, either at the mother unit level in case of an integrated unit or at the project level through indigenous manufacturers, in a hub and spoke structure.
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