Big opportunity for battery makers as e-vehicle campaign catches up

 India’s Electric Vehicle (EV) Mission 2030 is an opportunity for battery manufacturers under the government’s 'Make in India' drive. The mass conversion to electric vehicles in the country could create a domestic market for EV batteries worth US$300 billion by the year 2030. Around 25 to 40 per cent of the EV battery market and around 2/5th of the global battery demand could be captured through the Make in India initiative, which is aimed at encouraging manufacturing in India and attracting foreign investments.
 
NITI Aayog is mulling a feebate policy to support the automakers in the mass production of electric vehicles. Under the proposed policy, inefficient vehicles could incur a surcharge, while efficient vehicles could receive a rebate, thus increasing the maximum use of EV.
 
This competition created by India’s EV demand could bring down global battery prices by 16 per cent by 2030. As the battery currently accounts for almost one-third of an electric vehicle’s cost, reducing the cost of the battery by scaling production and standardizing components could also bring down the price of an EV.