India is taking strides toward self-reliance in cell manufacturing by focusing on increasing domestic production of battery components. Vijay Mittal, Joint Secretary at the Ministry of Heavy Industries (MHI), emphasized the importance of retaining and recycling lithium within the country to ensure its sustainable use in batteries.
To achieve this goal, the government is drafting a scheme to enhance “domestic value addition (DVA)” in battery production, particularly for electric vehicles (EVs). The initiative, spearheaded by MHI, aims to provide comprehensive support, including financial incentives, policy reforms, and ease of doing business.
Speaking at the India Battery Manufacturing and Supply Chain Summit 2025 in Delhi, Mittal highlighted the ministry’s ongoing work on a concept note. This document is designed to align policymakers and implement schemes that foster battery component manufacturing through financial systems, regulatory frameworks, and business-friendly measures.
Focus on Advanced Chemistry Cell (ACC) Batteries
ACC batteries, essential for EVs, consist of components like anodes, cathodes, electrolytes, and separators, as well as copper and aluminum foils. To qualify for subsidies under the government’s Production Linked Incentive (PLI) scheme for automobiles and components, manufacturers must ensure at least 50% domestic value addition.
“As emphasized, achieving a DVA of over 50% is critical for aligning with the ‘Make in India’ vision. Manufacturers meeting this benchmark are classified as Class 1 suppliers, contributing genuinely to India’s industrial growth,” Mittal said.
Role of Recycling in Self-Reliance
Mittal stressed the pivotal role of recycling in reducing dependency on imported lithium. By retaining and reusing lithium within India, the country can overcome resource limitations and achieve self-sufficiency in cell manufacturing.
Government Initiatives and Programs
In 2021, the Indian government launched the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, aiming to develop a manufacturing capacity of 50 GigaWatt Hours (GWh) for ACC and 5 GWh for niche ACC batteries. The program has a budget of ₹18,100 crore.
Additionally, the government announced a viability gap funding scheme for Battery Energy Storage Systems (BESS) to achieve 4 GWh capacity by 2030-31. This initiative, with a budgetary support of ₹3,760 crore, is currently under implementation.
By prioritizing domestic manufacturing, recycling, and value addition, India is paving the way for a robust and self-reliant EV ecosystem.
