The global industry is ramping up their battery manufacturing operations as the push for vehicle electrification continues. India is slated to join the select number of countries with lithium-ion battery manufacturing capacity. This is, no doubt, positive for both the Indian economy and the ambitious electric vehicle (EV) targets set by the government. India’s lack of mineral reserves, however, requires it to establish partnerships with more resource abundant countries and compete to attract more foreign investment to spur the battery manufacturing industry. Bloomberg projects global battery manufacturing capacity to grow from the current 103 gigawatt hours per year and reach 278 gigawatt hours by 2021 while battery pack prices fall from $273 per kilowatt hour in 2016 to $73 per kilowatt hour by 2030. Yet, the same time as battery-manufacturing ramps up, there are concerns about the supply of rare-earth metals essential to lithium-ion battery chemistry. India does not have large reserves of either of these mineral resources that are so heavily utilised in EVs, but that should not stop it from pursuing local battery manufacturing. IITM professor Ashok Jhunjhunwala is leading India’s electric vehicle program through government think-tank NITI-Aayog and is in favour of the country securing lithium reserves abroad to enable local production.

(Inc42)