Seven companies compete for giga-scale battery projects; RIL, JSW Neo, Adani Group among bidders
Upstox
2 min read • Updated: April 23, 2024, 6:43 PM
Summary
The Indian government received bids from seven companies that are willing to set up giga-scale battery manufacturing plants in the country. This is a significant development for India’s aim to be the global leader in electric vehicle (EV) production.
India’s aspirations to be a global hub for electric vehicles (EVs) received a major boost on Tuesday with the Ministry of Heavy Industries announcing seven bids received for the re-bidding of tenders to set up giga-scale battery manufacturing plants across the country.
The bidding process has attracted leading Indian industrial houses, including Reliance Industries (RIL), JSW Neo Energy, and Adani Group.
Additionally, foreign companies like South Korea's LG Chem and US-based energy storage solutions provider AMTEK, along with consortiums led by Indian firms like Mahindra & Mahindra and Noida-based ACME E-Mobility, have also submitted bids.
According to a report by India Energy Storage Alliance (IESA), this strong response to the government's tender underlines the immense potential of the Indian battery storage market, which is anticipated to touch $40 billion by 2030. The increasing demand for EVs necessitates a robust domestic battery manufacturing sector that reduces dependence on imports and ensures a cost-effective and reliable supply chain.
The bids for manufacturing facilities with a cumulative capacity of 70 gigawatt hours (GWh) came in response to a global tender issued by the Ministry of Heavy Industries on January 24 this year. "The scheme received an overwhelming response from industry as bids received is 7 times the manufacturing capacity of 10 GWh to be awarded," the ministry stated.
The government, under the Phased Manufacturing Programme (PMP), has been actively incentivising battery production to establish India as a competitive player in the global EV landscape. The PMP mandates a gradual increase in domestic value addition for battery cells used in EVs. The tender for giga-scale facilities, offering production capacities of at least 5 gigawatt-hour (GWh) annually, is a crucial step in achieving this goal.
It will be interesting to see how these companies take up this project and help in the expansion of EVs across the country.
In May 2021, the Union Cabinet had approved the PLI scheme for the National Programme on Advanced Cell Chemistry Battery Storage with an outlay of ₹18,100 crore. The scheme aims to achieve domestic manufacturing capacity of 50 GWh of battery storage.
The first round of bidding was concluded in March 2022 and three companies were allocated a total capacity of 30 GWh. The agreement with selected companies was signed in July 2022.