New Delhi, Aug 12
In a bid to reduce dependence on Asian countries for lithium-ion batteries and other basic requirements, a total of 40 GWh Advanced Chemistry Cell (ACC) capacity has been awarded to four beneficiary firms, and the projects are under implementation, the Parliament was informed on Tuesday.
India is mostly dependent on other Asian countries for the production and promotion of Electric Vehicles (EVs), exposing the industry to supply chain risks and price fluctuations.
Most of the global battery value chain imports originate from China, as the country has significant presence across the value chain, Minister of State for Steel and Heavy Industries, Bhupathiraju Srinivasa Varma, told the Lok Sabha in a written reply.
Under the Production-Linked Incentive (PLI) scheme namely 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage', administered by the Ministry of Heavy Industries (MHI), one beneficiary firm has confirmed installation of 1 GWh ACC capacity, under pilot run at present, said the minister.
As per the information received from the Ministry of Mines, the Union Cabinet approved the launch of the National Critical Mineral Mission (NCMM) on January 29, 2025, for a period of seven years from 2024-25 to 2030-31, with a proposed expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings (PSUs) and other stakeholders.
The NCMM aims to secure a long-term sustainable supply of critical minerals and strengthen India’s critical mineral value chains encompassing all stages from mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products, said the minister.
“In the interest of developing bilateral cooperation with countries having rich mineral resources, Ministry of Mines has entered into bilateral agreements with the governments of a number of countries such as Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, Cote D’Ivoire and international organisations such as International Energy Agency (IEA),†he added.
The Ministry of Mines has also set up Khanij Bidesh India Limited (KABIL), a Joint Venture company with the objective to identify and acquire overseas mineral assets that hold critical and strategic significance, specifically targeting minerals like Lithium, Cobalt, etc.
KABIL has signed an Exploration and Development Agreement with CAMYEN, a State-owned enterprise of Catamarca province of Argentina for Exploration and Mining of 5 Lithium Blocks in Argentina and has acquired 15,703 hectares in Catamarca Province, Argentina, for lithium exploration and mining.
KABIL is also exploring joint investments in large value projects in Australia in collaboration with other Indian PSUs. Ministry of Mines is also engaging on various multilateral and bilateral platforms such as Minerals Security Partnership (MSP), the Indo-Pacific Economic Framework (IPEF), and initiative on Critical and Emerging Technologies (iCET) for strengthening the critical minerals value chain.
— IANS
Reader Comments
Good initiative but 40GWh is still very small compared to global demand. China produces 1000+ GWh annually. We need to scale up faster if we want to compete in the EV market.
The Argentina lithium deal is smart! 🔋 We should secure more such agreements before other countries grab all resources. But hope the environmental impact is properly assessed - we don't want to repeat mistakes made in mining elsewhere.
As an EV owner, I welcome this news! Battery costs make up 40% of EV price. If local production brings prices down, more Indians will switch to electric vehicles. Just hope the quality matches international standards.
₹16,300 crore is huge money! Hope there's proper oversight on spending. We've seen too many projects where funds get misused. Transparency in these deals is crucial for public trust.
Why only 4 firms? More competition would have been better for innovation and pricing. Also, what about battery recycling plans? We can't just keep mining new materials forever.
The international collaborations mentioned (Australia, Argentina etc.) show good strategic thinking. In today's geopolitics, diversifying supply chains is as important as building domestic capacity. Smart move by India
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