Ggovernment of India’s policy maker, NITI Aayog, has proposed the establishment of giga factories in India for the manufacture of lithium-ion batteries, which are required for running electric Vehicles, in the next couple of years.
Natably, ‘GigaFactory‘ is a name given to lithium-ion battery and electric vehicle sub-assembly factory of Elon Musk-promoted Tesla, Inc.
Part of NITI Aayog’s earlier proposal, the recommendation has proposed that giga factories be established for making lithium-ion batteries in India and at least three-four factories to come up in the next two-three years.
Earlier proposal by NITI Aayog, which is being facing industry backlash, has suggested that post March 31, 2023 only electric (lithium-ion or other advanced battery chemistry only) two and three -wheelers would be sold in the country after and all new sales of two-wheelers below 150cc would be electric post March 31, 2025.
Rajiv Kumar, Vice Chairman of NITI Aayog, tweeted “We have proposed in this mission that giga factories be established for making lithium-ion batteries in India. We want at least three-four factories to come up in the next two-three years.”
We have proposed in this mission that giga factories be established for making lithium-ion batteries in India. We want at least three-four factories to come up in the next two-three years.#FAME-II #electricvehicles #futuremobility #EVs https://t.co/NR8tpUDn8m
— Rajiv Kumar 🇮🇳 (@RajivKumar1) July 3, 2019
“When the policy (moving to electric two and three-wheelers) comes into effect, you will have domestically produced lithium-ion batteries or other advanced technology batteries,” said Rajiv Kumar in a statement to The Hindu.
According to Kumar, Electric Vehicle batteries was a sunrise industry and India needed to start building capabilities to become a globally competitive player in this area. “The lack of domestic capability will result in massive imports as is the case in electronics,” he said.
Mr Rajiv Kumar also said that working towards finding lithium-ion and with the advancement of technology, it was likely that it may be replaced with other advanced batteries.
To recall, in September last year, in a warning to India Chairman of Japan’s Suzuki Motor had said that Indian dream of all-electric vehicles on road by 2032 can seriously hamper if India do not start manufacturing batteries used by electric vehicles (EVs) locally in the country.
Fe weeks later after that the Prime Minister Office (PMO) had asked department of heavy industry to redraft its proposal to offer incentives of as much as $759 million (₹5,500 crore), which will mostly be use to encourage local manufacturing of lithium-ion (Li-ion) batteries used in EVs.
To push the adoption of electric mobility in the country, Indian government has taken numerous steps of late. Last month, it was reported that government of India is planning to mandate cab aggregators such Uber and Ola to convert 40% of their fleet of cars to electric by April 2026.
In March, The Union cabinet chaired by the Prime Minister Narendra Modi has approved the proposal for implementation of Phase-2 of Electric Vehicle Scheme ‘Faster Adoption and Manufacturing of Electric Vehicles in India’ (FAME) that include approval of a $1.4 Billion package, which will offer car buyers in the country upfront incentives on purchase of electric vehicles. The package announced will also be used for setting up charging infrastructure and focussing on electrification of public transport.