Electric vehicle campaign could be $300 billion opportunity for battery makers: NITI Aayog
Around 25 to 40 percent of the EV battery market and around 2/5th of the global battery demand could be captured through the ‘Make in India’ initiative.
NITI Aayog on Wednesday said that India’s Electric Vehicle (EV) Mission 2030 was an opportunity for battery manufacturers under the government’s ‘Make in India’ campaign, according to a reportby Mint.
The think tank said that mass conversion to electric vehicles in the country could create a domestic market for EV batteries worth USD 300 billion by the year 2030.
According to the report, around 25 to 40 percent of the EV battery market and around 2/5th of the global battery demand could be captured through the ‘Make in India’ initiative, which is aimed at encouraging manufacturing in India and attracting foreign investment to the country.
NITI Aayog also batted for a ‘feebate’ policy to support the automobile sector’s transition to the mass production of electric vehicles, under which inefficient vehicles could incur a surcharge, while efficient vehicles could receive a rebate.
The think tank said that the competition created by India’s EV demand could bring down global battery prices by 16 percent by 2030.
As the battery currently accounts for almost one-third of an electric vehicle’s cost, reducing the cost of the battery by scaling production and standardizing components could also bring down the price of an EV.