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As India moves towards greener future, the electric vehicle (EV) market is prepared to rise in 2024. Central to this revolution are battery manufacturers, the backbone of EV technology. These companies are focused on developing and supplying batteries for various applications from electric vehicles to renewable energy systems.
Rise of Electric Vehicles in India
With advancements in battery technology and increase in charging stations, electric vehicles are rapidly gaining pull as a practical choice for drivers worldwide. In India, the government’s initiatives promoting electric mobility and growing environmental concerns have fueled the popularity of EVs.
Importance of Batteries in Electric Vehicles
The battery is the heart of any electric vehicle, making the selection of the right battery manufacturer decisive for the industry’s success. Currently, lithium-ion batteries dominate the EV market, powering these eco-friendly vehicles across the country.
Investing in Electric Vehicle Stocks
Investors are increasingly eyeing electric vehicle stocks as a bright opportunity amidst the automotive industry’s significant transformation. With global momentum shifting towards sustainable mobility, EV stocks are becoming increasingly necessary for the future of transportation. Government incentives and regulations further strengthen this growth trajectory.
India’s Role in Electric Vehicle Market
India ranks third in global automobile sales and is ready to capitalize on the electric vehicle revolution. With ambitious goals for EV sales and significant investments earmarked for cleaner energy initiatives the country is making the shift towards electric mobility.
Government Initiatives and Schemes for Electric Vehicles
The Indian government has taken several initiatives to accelerate the transition towards cleaner energy and promote electric mobility. In the Union Budget of 2023-24, approximately ₹35,000 crore was allocated for key investments to facilitate this shift and achieve net-zero targets by 2070. With initiatives like Production Linked Incentive Scheme (PLI) and Faster Adoption of Manufacturing of Electric Vehicles Scheme – II (FAME – II) have been rolled out to provide boost to the electric vehicle industry. These schemes offer incentives and subsidies to manufacturers and consumers, thereby incentivizing adoption of electric vehicles and prompting the development of related infrastructure.
Additionally, the recent introduction of the Electric Mobility Promotion Scheme 2024 (EMPS 2024) underscores the government’s commitment to accelerating the adoption of electric vehicles. This scheme offers financial support for the purchase of electric two-wheelers and three-wheelers, aiming to drive widespread adoption and promote the growth of the electric vehicle manufacturing ecosystem in India. Overall, these initiatives demonstrate the government’s proactive stance toward adopting a green transportation ecosystem and reducing carbon emissions.
In this blog post, we’ll take a deep dive into the leading electric vehicle battery manufacturers in India. We’ll explore how these companies are shaping the burgeoning EV ecosystem and driving India’s shift towards sustainable mobility.
- Himadri Speciality Chemicald
Known for its expertise in chemical manufacturing particularly in producing materials essential for lithium ion batteries. These materials play a vital role in the development of high performance and durable EV batteries. In December 2023, the company unveiled plans to invest ₹4,800 crore in the manufacturing of components for lithium ion batteries. According to the announcement this investment, which will span 5-6 years highlights the company’s commitment to tapping into the growing demand for EV technology.
- Graphite India Ltd
Graphite India is a key supplier of graphite electrodes, crucial for EV batteries. Recently, they invested Rs. 50 crore in Godi India Private Ltd, securing a 31% stake. Godi India specializes in eco friendly battery tech for EVs and energy storage, like Lithium ion and Sodium ion batteries. They aim for net zero carbon by 2040. This aligns with Graphite India’s goal of diversifying into advanced battery tech signaling a big move in the growing EV and energy storage sectors.
- Exide Industries Ltd
This company, known for making batteries for regular cars, is now also making batteries for electric vehicles. They’re investing ₹60 billion to build a 12 GWh Li-Ion cell plant in stages. This helps them meet the rising demand for EV batteries.
- Hindalco Industries
A major player in the aluminium and copper industry in India is expanding into the electric vehicle market. On December 12, 2023, they announced an Rs. 8 billion investment to build a battery aluminium foil manufacturing plant in Odisha. This facility, expected to begin operations by July 2025, will produce 25,000 tonnes and be powered by solar energy. It aligns with the projected national demand of 40,000 tonnes for battery grade aluminium foil by 2030.
With a focus on exports and serving both domestic and international markets, Hindalco is also exploring partnerships with global lithium ion cell manufacturers. They’ve signed an MoU with Phinergy and IOC Phinergy to develop aluminium air batteries.
- Amara Raja Batteries Ltd
Amara Raja Batteries Ltd, a top name in India’s battery market is now into electric vehicles. They’re focusing on lithium batteries, EV chargers and energy storage solutions through their new energy division. In FY 2023, they launched Amara Raja Advanced Cell Technologies (ARACT) to create batteries suited for Indian climates. ARACT also supplies battery packs and chargers mainly for two and three wheelers.
Amara Raja is building a large lithium ion cell and battery pack plant in Telangana, with a capacity of 16 GWH. They’re investing Rs. 95 billion over ten years for this project. While the new energy division’s revenue is currently low, it’s expected to triple to Rs. 7.5 billion in FY24 as they start supplying to the electric two-wheeler market.
- Tata Chemicals Ltd
Tata Chemicals is playing a big role in the Tata Group’s push into electric vehicles showing India’s focus on sustainable transportation. This fits into the broader vision of Ratan Tata’s leadership, which has expanded into new industries like electric mobility. Tata Chemicals recently signed an MoU with the Gujarat government to set up a 20 gigawatt lithium-ion cell manufacturing unit, highlighting its importance in the EV sector.
With plans to invest Rs. 29 billion to increase capacity, Tata Chemicals aims to play a big role in India’s EV ambitions, making electric mobility more affordable and sustainable while reducing the country’s carbon footprint.
Conclusion
The rapid growth of the electric vehicle market in India shows a potential shift towards a greener and more sustainable future. As the demand for electric vehicles continues to surge, the role of battery manufacturers becomes increasingly focal. Companies like Himadri Speciality Chemical, Graphite India Ltd, Exide Industries Ltd, Hindalco Industries, Amara Raja Batteries Ltd, and Tata Chemicals Ltd are leading the charge by investing in advanced battery technologies and infrastructure.
These investments not only drive innovation but also contribute to India’s ambitious goals for electric vehicle adoption and environmental sustainability. With government initiatives like the Electric Mobility Promotion Scheme 2024 supporting this transition, the stage is set for India to emerge as a global leader in electric mobility. As we navigate this transformative journey, the collaboration between government, industry, and consumers will be essential in realizing a cleaner and more sustainable transportation ecosystem for generations to come.
