Japanese Delegation to Support India's Battery Production

A Japanese delegation, consisting of senior government officials and industry representatives, is set to visit India in early July. Their goal is to assist in achieving a 30 gigawatt hour (GWh) advanced chemistry cell (ACC) battery production capacity by providing technological support.

Challenges in Battery Production

• The initiative is part of India's production-linked incentive (PLI) ACC scheme.
• Three companies, Reliance New Energy, Ola Cell Technologies, and Rajesh Exports, face hurdles in meeting the 30 GWh capacity target.
• Ola Cell Technologies has only installed 1.4 GWh out of the planned 20 GWh.
• Delays are attributed to technology gaps, lack of skilled manpower, and non-availability of upstream components.

Japanese Support and Collaboration

• Japan aims to provide technology and raw materials like graphite, lithium, and cobalt.
• India strives to become self-sufficient in battery manufacturing, especially for electric vehicles (EVs).
• There is a heavy reliance on imports, notably 75% of lithium-ion batteries from China and Hong Kong.
• Economic surveys predict lithium-ion battery demand to grow at a CAGR of 23% by 2027.

Existing and Potential Partnerships

• India and Japan have existing agreements related to lithium battery technology.
• Indian Oil Corporation and Panasonic Energy are forming a joint venture for lithium-ion cell manufacturing.
• Further B2B marketing and technology development are anticipated during the Japanese visit.

Recommendations for Reducing Import Dependence

Shyamasis Das suggests several measures to reduce import reliance:

• Investment in battery recycling and R&D for technology development.
• Exploration of alternative battery types like sodium-ion and metal-air.
• Development of a strong recycling industry to obtain cost-effective raw materials.

Efforts to Strengthen Rare Earth Supply Chains

An inter-ministerial meeting focused on securing a supply chain for rare earth and critical minerals occurred. The Ministry of Coal and Mines, Ministry of Atomic Energy, Ministry of Heavy Industries, and Ministry of Commerce participated.

• Emphasis on improving the value chain from mining to end-use.
• The National Critical Mineral Mission aims to make India self-reliant in minerals.