India's Push for Domestic Lithium-Ion Battery Production

In a significant move to bolster domestic production of lithium-ion batteries, crucial for electric vehicles (EVs) and mobile phones, Finance Minister Nirmala Sitharaman announced a proposal to extend duty exemptions on capital goods used in their manufacturing. This initiative aims to enhance India's self-reliance in this critical sector.

"To the list of exempted capital goods, I propose to add 35 additional items for EV battery manufacturing and 28 for mobile phone battery manufacturing," Sitharaman stated during the Union Budget announcement.

Industry Experts React Positively

The announcement has been met with positive reactions from industry experts, who believe this move will significantly reduce costs and accelerate India's transition to electric vehicles. Saket Mehra, a partner at Grant Thornton Bharat, highlighted the potential for lower input costs, which could propel the country's growing EV sector.

Nirmal K Minda, chairman and managing director of Uno Minda, emphasized the importance of localizing EV battery production and components. This, he believes, will not only enhance manufacturing capacities but also reduce reliance on imports, making electric vehicles more affordable for consumers and strengthening India's EV ecosystem.

Pritesh Mahajan, co-founder and CEO of Revamp Moto, also praised the government's decision to fully exempt Basic Customs Duty on cobalt powder, lithium-ion battery waste, scrap, and other critical minerals. This policy is expected to encourage companies to scale up operations, drive technological innovation, and create high-value jobs in the sector.

India's Step Towards Sustainable Growth

With these policy measures, India is taking a significant step towards becoming a global hub for lithium-ion battery manufacturing. This move is expected to reduce dependence on imports and foster sustainable growth in the EV and electronics industries, marking a pivotal moment in India's journey towards self-reliance and technological advancement.