One of India’s largest battery manufacturer, Amara Raja Batteries Ltd. Is planning to set up lithium ion battery plant in Andra Pradesh with a aim to hold largest market share of battery packs in India’s growing EV market and is predicted to grow upto $300 billion till 2030.
The target is to make a 100 Mega watt-hour of production plant , for this the company is taking help from Indian Institute of Technology,Chennai. The company is also working with OEM’s to supply Lithium-ion batteries to their electric vehicles and IIT Chennai will provide them with the necessary problem solving technology.
India’s domestic EV manufacturers include Mahindra Electric and Tata Motors. Ashok Leyland is also developing fast charging stations for its electric buses. Global automotive manufacturers like Suzuki and Hyundai are optimistic about launching their EV’s in India by 2020.
To bolster this ever increasing demand for electric vehicles , India needs domestic manufacturers of Lithium-ion .Indigenously developed Lithium-ion battery packs will be cheaper and hence the EV’s cost will also gradually decrease. Amara Raja wants to hold the largest market share of this increasing battery demand.
India’s EV segment is also going to see a rapid growth in electric two wheelers and three wheelers. Lithium-ion battery demands for e-rickshaws will be at peak in coming years. Amara Raja is hoping to be a leading supplier of batteries to e-rickshaws and taxis in 2019.
India currently has no reserve’s of Lithium to manufacture batteries .We still has to import Lithium from China and Taiwan. After the release of FAME 2 ,battery manufacturers are expecting a subsidy to be provided on electric buses and e-rickshaws which will ultimately result in high demands for Lithium-ion battery pack.
According to a study published by Bloomberg, 50 % of new car sales in the world will be electric by 2040. FAME 2 (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) will be announced soon and is expected to bring new hopes to the Indian EV segment.