To bridge an 18% to 61% price premium compared to Chinese imports, the government is considering options ranging from pure capital subsidies to blended packages with operational incentives. Qualified components would span vital inputs like cathode and anode active materials, separators, and copper foil across electronics, electric vehicles, and stationary storage. Aluminium foil is likely to be omitted from the scheme because local supply capacity is already deemed sufficient. Industry estimates show that meeting projected cell demand by 2030 will require massive scale, including over 400,000 tonnes of cathode active materials.
Key points
Materials and components represent approximately 76% of total cell manufacturing costs, m…: Materials and components represent approximately 76% of total cell manufacturing costs, making local supply critical.
Planned financial support will span electric vehicles, stationary energy storage, and ele…: Planned financial support will span electric vehicles, stationary energy storage, and electronics rather than serving a single industry.
Program eligibility and incentive disbursements may be conditioned on realized sales, cap…: Program eligibility and incentive disbursements may be conditioned on realized sales, capacity milestones, and domestic value addition.
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The ministry is weighing three models of support, including a subsidy covering 25% of eligible capital expenditure, coupled with component-specific operating incentives of 5% to 18% of eligible sales, officials told ET.
Also read: Cabinet approves ₹2,814-crore scheme to promote critical mineral processing
A second option involves sales-linked incentives of 11% to 37% for five to seven years, without any capital assistance. The third proposes a capital subsidy covering 50% of project costs, disbursed alongside investments.
Ministry weighing subsidy covering 25% of eligible capex and component-specific operating incentives of 5-18% of eligible sales
The proposed incentives will cover lithium iron phosphate and nickel manganese cobalt cathode materials, natural and synthetic graphite anode materials, electrolytes, separators and battery-grade copper foil. Aluminium foil could be excluded, as the official estimate considers the existing domestic ecosystem sufficient.
"The support is expected across end uses, including electric vehicles, stationary energy storage and electronics, rather than restricting eligibility to particular applications," the official said, adding eligibility and disbursements could be linked to investment, capacity, domestic value addition, commissioning…
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