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					</table><p>The U.S. Department of Energy (<a href="https://www.energy.gov/" target="_blank" rel="noopener">DOE</a>) has announced funding of $3.5 billion to boost domestic production of advanced batteries and battery materials. The initiative aims to create and upgrade facilities critical for supporting the future of clean energy industries, including renewable energy and electric vehicles (EVs).</p>
<p>Administered by the DOE’s Office of Manufacturing and Energy Supply Chains (<a href="https://www.energy.gov/mesc/office-manufacturing-and-energy-supply-chains" target="_blank" rel="noopener">MESC</a>), the investment reflects the U.S.’s commitment to achieving a net-zero emissions economy by 2050, with EVs constituting half of all new light-duty vehicle sales by 2030.</p>
<p>The funding will create new, retrofitted, and expanded domestic facilities for battery-grade processed critical minerals, battery precursor materials, battery components, and cell and pack manufacturing.</p>
<p>Batteries are pivotal in the transition to a clean energy economy, reducing energy costs and greenhouse gas emissions for American families and businesses. They are essential for grid storage, ensuring resilience in homes and businesses, and driving the electrification of the transportation sector.</p>
<p>With the lithium battery market projected to increase by five- to ten-fold by the end of the decade, investing in a resilient supply chain for high-capacity batteries, including non-lithium batteries, is crucial.</p>
<p>This funding opportunity marks the second phase of the $6 billion allocated by the Bipartisan Infrastructure Law.</p>
<p>The first phase catalyzed over $5.8 billion in public/private investment through fifteen projects. The current phase aims to strengthen domestic battery manufacturing and supply chains, focusing on:</p>
<ul>
<li>Ensuring a competitive domestic battery materials processing industry.</li>
<li>Expanding the nation&#8217;s capabilities in advanced battery manufacturing.</li>
<li>Enhancing national security by reducing reliance on critical minerals, battery materials, and technologies from foreign entities.</li>
<li>Advancing domestic processing capacity for minerals crucial to battery materials and advanced batteries.</li>
</ul>
<p>The DOE is prioritizing next-generation technologies and battery chemistries, expanding focus areas beyond lithium-based technologies.</p>
<p>This includes precursor production, manufacturing for non-light duty markets, and projects increasing the separation of battery-grade critical materials. The program will continue adapting to market and technology evolution, updating topic areas every six months.</p>
<p>Concept papers are due January 9, 2024, with full applications due March 19, 2024.</p>
<p>Last year, the U.S. Energy Information Administration said power developers and project owners would <a href="https://www.mercomindia.com/us-battery-utility-scale-storage-capacity-to-gw-by-2025" target="_blank" rel="noopener">add</a> utility-scale battery storage capacity of up to 30 GW in the U.S. over the next three years.</p>
<p>Earlier, Mercom <a href="https://www.mercomindia.com/industry-hails-battery-energy-storage-projects" target="_blank" rel="noopener">reported</a> how in India the Viability Gap Funding program for Battery Energy Storage Systems has been welcomed by industry stakeholders for its potential impact on system cost, demand, and manufacturing in the country.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/gautamee-hazarika/" class="vcard author" rel="author"><span class="fn">Gautamee Hazarika</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Gautamee,</strong> Staff reporter at Mercom India<br />
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<a href="gautamee@mercomindia.com" target="_blank" rel="noopener">gautamee@mercomindia.com</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">Gautamee</a> is a reporter at Mercom India. Prior to Mercom, Gautamee was working as a multimedia news journalist at ThePrint in New Delhi. She has received her Bachelors in English Honors and Masters in English Literature from St.Stephen&#8217;s College, University of Delhi.<a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">More articles from Gautamee</a></div>
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US Announces $3.5 Billion to Strengthen Domestic Battery Manufacturing


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					</table><p>As India strives towards decarbonizing the transport sector, the country has installed 8,738 operational public electric vehicle charging stations, as of June 30, 2023, according to the Bureau of Energy Efficiency (<a href="https://beeindia.gov.in/en" target="_blank" rel="noopener">BEE</a>) and the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> data.</p>
<p>The information was shared by the Minister of <a href="https://heavyindustries.gov.in/" target="_blank" rel="noopener">State for Heavy Industries</a>, Krishan Pal Gurjar, in a written response to a question in the Rajya Sabha.</p>
<p>The increasing demand for electric vehicles (EVs) has led to the faster deployment of necessary charging infrastructure.</p>
<p>The minister further stated that as of July 14, 2023, India has 2.7 million EVs registered in various states of India, as per the data available on the government portal Vahan.</p>
<p>The top five states in India with the highest number of registered EVs are Uttar Pradesh (556,629), Maharashtra (296,885), Karnataka (239,948), Delhi (229,305), and Rajasthan (175,595). The share of EVs among the total number of vehicles registered in these states is about 1.27%, 0.86%, 0.80%, 2.71%, and 0.93%, respectively, reflecting their commitment to promoting sustainable and eco-friendly mobility solutions.</p>
<p>The government, through various programs, has accelerated the adoption of EVs in India.</p>
<p>The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India program was launched in 2015 to promote the adoption and manufacturing of hybrid and EVs in India on a pan-India basis.</p>
<p>In Phase II of the FAME India program, buyers of electric vehicles are offered incentives in the form of upfront price reductions.</p>
<p>The incentive depends on the battery capacity, with ₹10,000 (~$122.17)/kWh for electric three and four-wheeler vehicles, capped at 20% of the vehicle cost.</p>
<p>For electric-two-wheeler vehicles, the incentive is fixed at ₹10,000 (~$122.17)/kWh with a cap of 15% of the vehicle cost, effective June 1, 2023.</p>
<p>Phase II of the program is currently being implemented for five years starting from April 1, 2019, with total budgetary support of ₹100 billion (~$1.2 billion).</p>
<p>Earlier this year, a parliamentary committee <a href="https://www.mercomindia.com/parliamentary-panel-fame-program-by-two-years" target="_blank" rel="noopener">recommended</a> extending the FAME-II program by two years beyond its current March 31, 2024, deadline to allow more time to evaluate its effectiveness and make necessary adjustments to promote EVs.</p>
<p>Other than the FAME program incentives, various states have also rolled out incentives for EVs in the state through their Electric Vehicle Policies.</p>
<p>EV sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-q2-2023" target="_blank" rel="noopener">reached</a> 371,340 units in the second quarter (Q2) of 2023, a year-over-year (YoY) increase of 66% compared to 223,293 units sold in the same period last year. Sales increased by 6% compared to 349,676 units sold in the previous quarter. As of June 2023, the number of registered EVs in India has exceeded 2.4 million.</p>
<p>In a written reply to the Lok Sabha, R.K. Singh, Union Minister of Power and New and Renewable Energy, <a href="https://www.mercomindia.com/india-aims-at-9-fold-in-public-ev-charging-2030" target="_blank" rel="noopener">noted</a> that the government aims to install a total of 46,397 public charging stations for EVs in nine major cities by the end of the decade.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/gautamee-hazarika/" class="vcard author" rel="author"><span class="fn">Gautamee Hazarika</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Gautamee,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/gautamee-hazarika/" target="_blank" rel="noopener">More articles from Gautamee.</a><br />
<br />
<a href="gautamee@mercomindia.com" target="_blank" rel="noopener">gautamee@mercomindia.com</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">Gautamee</a> is a reporter at Mercom India. Prior to Mercom, Gautamee was working as a multimedia news journalist at ThePrint in New Delhi. She has received her Bachelors in English Honors and Masters in English Literature from St.Stephen&#8217;s College, University of Delhi.<a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">More articles from Gautamee</a></div>
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8,738 Public EV Charging Stations Operating in India as of June: Minister


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					</table><p><a href="https://www.neuronenergy.in/" target="_blank" rel="noopener">Neuron Energy</a>, a Mumbai-based lithium-ion battery manufacturer, has raised ₹200 million (~$2.4 million) in its pre-series A round.</p>
<p>The investment was led by <a href="https://www.equanimityinvestments.com/" target="_blank" rel="noopener">Equanimity Investments</a> and the Rajiv Dadlani Group. It also saw participation from Chona Family Office (<a href="https://www.havmor.com/" target="_blank" rel="noopener">Havmor Group</a>) and Kayenne Ventures.</p>
<p>The funds will be used to secure ICAT certifications, invest in mold development, and strengthen the workforce by expanding the research and development team and hiring CXOs and senior management.</p>
<p>The funding will fuel Neuron&#8217;s expansion of Li-ion smart batteries for EV two-wheelers and three-wheelers while aiding the brand&#8217;s venture into drone batteries.</p>
<p>The company offers lithium-ion and lead-acid batteries specifically designed for e-bikes, e-rickshaws, and golf carts.</p>
<p>Commenting on the funds raised, Pratik Kamdar, CEO &amp; Co-Founder of Neuron Energy, said the funds raised will enhance the company’s manufacturing capabilities and bolster the workforce.</p>
<p>Rajesh Sehgal, Managing Partner of Equanimity Investments, commented, “The EV landscape in India is evolving and is expected to gain pace in the coming years, as India moves towards a well-planned holistic trajectory by making significant progress towards an electric future. This also makes battery manufacturing a huge opportunity, as it is at the heart of the energy ecosystem transition.”</p>
<p>Rajiv Dadlani said, &#8220;As long-term growth investors, we recognize the enormous opportunity of the EV industry. Neuron Energy demonstrates the remarkable potential to become the market leader with their exceptional efficiency in delivering top-quality products.”</p>
<p>Dadlani added that the company and its founders are highly committed to delivering rigorously tested and safe-to-use li-Ion smart batteries, a key factor that has sparked significant investor interest.</p>
<p>In addition to the funding, Neuron Energy seeks to establish a strategic partnership with a leading EV two-wheeler manufacturer to establish a dedicated facility.</p>
<p>In December 2022, Neuron Energy <a href="https://www.mercomindia.com/neuron-energy-to-invest-%e2%82%b9500-million-in-battery-production" target="_blank" rel="noopener">announced</a> it would invest ₹500 million ($6.04 million) to increase production capacity. The investment will be split into ₹350 million ($4.2 million) of working capital and ₹150 million ($1.8 million) of equity from the promoters and strategic partners.</p>
<p>Electric vehicle sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-q2-2023" target="_blank" rel="noopener">grew</a> by 66% year-over-year to 371,340 units in the second quarter of 2023, compared to 223,293 units sold in the corresponding quarter last year.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/gautamee-hazarika/" class="vcard author" rel="author"><span class="fn">Gautamee Hazarika</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Gautamee,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/gautamee-hazarika/" target="_blank" rel="noopener">More articles from Gautamee.</a><br />
<br />
<a href="gautamee@mercomindia.com" target="_blank" rel="noopener">gautamee@mercomindia.com</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">Gautamee</a> is a reporter at Mercom India. Prior to Mercom, Gautamee was working as a multimedia news journalist at ThePrint in New Delhi. She has received her Bachelors in English Honors and Masters in English Literature from St.Stephen&#8217;s College, University of Delhi.<a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">More articles from Gautamee</a></div>
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Neuron Energy Raises ₹200 Million to Expand EV Battery Manufacturing


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					</table><p><a href="https://www.ril.com/OurBusinesses/New-Energy.aspx" target="_blank" rel="noopener">Reliance New Energy</a>, <a href="https://olaelectric.com/" target="_blank" rel="noopener">Ola Electric Mobility</a>, and <a href="http://www.rajeshindia.com/" target="_blank" rel="noopener">Rajesh Exports</a> have signed the program agreement under the Production Linked Incentive (PLI) Program for Advanced Chemistry Cell (ACC) Battery Storage.</p>
<p>Mercom had earlier <a href="https://mercomindia.com/reliance-ola-hyundai-rajesh-exports-win-bid-50-gwh-acc/" target="_blank" rel="noopener">reported</a> that Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors, and Rajesh Exports had been approved by the Ministry of Heavy Industries for receiving incentives under the PLI program for ACC for battery storage.</p>
<p>The total capacity declared for the four shortlisted bidders was 50 GWh, out of which Ola and Hyundai were to receive incentives for setting up ACC capacities of 20 GWh each, while Reliance New Solar and Rajesh Exports have been awarded incentives for 5 GW capacity each.</p>
<p>According to a source Mercom spoke to, Hyundai Global Motors’ application is still being processed, and its details will be disclosed soon.</p>
<p>Ten bids were received from companies with a manufacturing capacity of 128 GWh under the PLI program for battery storage. The bidders will receive incentives under the ₹181 billion (~$2.30 billion) program. The manufacturing facility would have to be set up within two years. The incentives will be disbursed after that over five years.</p>
<p>In November 2020, the government <a href="https://mercomindia.com/dhi-issues-details-pli-program/" target="_blank" rel="noopener">approved</a> the PLI program for achieving a manufacturing capacity of 50 GWh of ACC battery storage. The government aims to achieve greater domestic value addition while keeping the levelized cost of battery manufacturing in India globally competitive.</p>
<p>Advanced chemistry cells can store energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.</p>
<p>As per the NITI Aayog report, with the PLI scheme providing the much-needed boost to the sector, India&#8217;s annual battery market could <a href="https://mercomindia.com/india-annual-battery-market-could-surpass/" target="_blank" rel="noopener">surpass</a> $15 billion by 2030.</p>
<p>&#8220;Today, big companies are investing in battery manufacturing in India. We should support them and make India a truly global manufacturing hub,&#8221; said Mahendra Nath Pandey, Union Minister for Heavy Industries.</p>
<p>In addition to the capacities allocated by the Ministry of Heavy Industries under the PLI Program, private players are expected to create a battery manufacturing capacity of about 95 GWh.</p>
<p>The program is designed to be technology agnostic; its only focus is on the desired output of the batteries. So, the beneficiary firm will be free to choose suitably advanced technology and the corresponding plant and machinery, raw material, and other intermediate goods for setting up a cell manufacturing facility to cater to any application.</p>
<p>The ACC PLI program is expected to increase the share of renewables at the national grid level.</p>
<p>A dedicated panel at the <a href="https://mercomindia.com/event/solar-summit-2022/" target="_blank" rel="noopener">Mercom India Solar Summit 2022</a> in New Delhi <a href="https://mercomindia.com/energy-storage-drive-growth-of-renewables/" target="_blank" rel="noopener">discussed</a> how energy storage would drive future renewables growth.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/vijayalakshmi-sridhar/" class="vcard author" rel="author"><span class="fn">Vijayalakshmi Sridhar</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/New-Project-6.jpg" width="77" height="102" /> <a href="https://mercomindia.com/author/vijayalakshmi-sridhar/" target="_blank" rel="noopener">Vijayalakshmi</a> is a staff reporter at MercomIndia.com. She has two decades of experience as an independent journalist and features writer, and her work is featured across various publications and genres such as business, food, and clean energy. <a href="https://mercomindia.com/author/vijayalakshmi-sridhar/" target="_blank" rel="noopener">More articles from Vijayalakshmi</a>.</p>
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Reliance, Ola and Rajesh Exports Sign Agreement for Battery Storage Under PLI Program

<p>The government of Tamil Nadu has launched the state’s Electric Vehicle (EV) Policy 2019. The policy aims to mobilize ₹500 billion ($7 billion) investment in EV manufacturing in the state. The policy aims to create a complete EV ecosystem and charging infrastructure.</p>
<p>The policy has also provided various demand and supply-side incentives that are expected to encourage the adoption of electric vehicles. The state will allow the exemption of road tax on the purchase of electric two-wheelers, autorickshaws, light goods carriers, and passenger vehicles. The policy will also facilitate the waiver of registration charges for new vehicles.</p>
<p>The state is looking to attract EV and related industries to set up facilities in the region, and this will be through supply-side incentives such as reimbursement of Goods and Service Taxes (GST), a capital subsidy of 15%, tax exemption on electricity, and subsidies on land cost.</p>
<p>To boost the development of charging infrastructure, the state will invest the funds with the active participation from Tamil Nadu’s distribution company (TANGEDCO). The government is also planning on launching capital subsidies that will help private sector players invest in charging infrastructure for hotels, shopping malls, cinema halls, and apartments. According to the policy, charging stations would be developed at an interval of 25 kilometers on both sides of state and national highways. TANGEDCO is expected to set up its charging infrastructure through private players on a public-private partnership (PPP) model. The tariff for supply of electricity at public charging stations will not be higher than 15% above the average cost of supply.</p>
<p>A slew of other measures such as employment incentives, incentives for MSME sector, and special package for battery manufacturing have also been announced as part of the policy.</p>
<p>Currently, there are around 27.7 million vehicles registered in the state, and as of March 31, 2019, Tamil Nadu accounts for 6.4% of electric vehicles sold in India. Through the implementation of the policy, the state is looking to increase the share of EVs in the total vehicle population.</p>
<p>Tamil Nadu has joined other states and union territories announcing EV policies. The Delhi government <a href="https://mercomindia.com/delhi-draft-ev-policy-2018/" target="_blank" rel="noopener noreferrer">released</a> its draft EV policy hoping that 25% of all new vehicle registrations by 2023 will be Battery Electric Vehicles (BEVs). Uttarakhand <a href="https://mercomindia.com/uttarakhand-driving-investments-ev-manufacturing/" target="_blank" rel="noopener noreferrer">approved</a> a policy to promote the adoption of electric vehicles in the state, while also incentivizing EV manufacturing. With this development, Uttarakhand had become the second north Indian state to lay out a plan for manufacturing and adoption of EVs after <a href="https://mercomindia.com/uttar-pradesh-ev-manufacturing-policy/" target="_blank" rel="noopener noreferrer">Uttar Pradesh</a>. Kerala’s EV policy <a href="https://mercomindia.com/kerala-announces-ev-policy/" target="_blank" rel="noopener noreferrer">aims</a> at bringing one million EVs on the road by 2022 and creating a pilot fleet of 200,000 two-wheelers, 50,000 three-wheelers, 1,000 goods carriers, 3000 buses and 100 ferry boats by 2020. The Maharashtra EV policy <a href="https://mercomindia.com/maharashtra-cabinet-electric-vehicle-policy-evs/" target="_blank" rel="noopener noreferrer">targets</a> at creating an enabling environment for the manufacture of 500,000 EVs in the state within the next five years.</p>
<p><a href="https://mercomindia.com/gst-electric-vehicle-reduced-5/" target="_blank" rel="noopener noreferrer">Recently</a>, in a positive development towards increasing electric mobility in the country, the government cut the applicable rate of GST on EVs from 12% to 5%.</p>
<p><strong> </strong>The EV market in India is buoyant amid increasing policy support from the government. The adoption of EVs in the country is poised to grow in the coming years, although battery charging infrastructure remains a valid concern among potential consumers. In a comprehensive analysis, Mercom recently analyzed India’s two and three-wheeled EV segment and who is driving the growth in this sector. Read the entire report <a href="https://mercomindia.com/who-will-drive-indias-ev-segment/" target="_blank" rel="noopener noreferrer">here</a>.</p>
<p>&nbsp;</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/shaurya-bajaj/" class="vcard author" rel="author"><span class="fn">shaurya</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><span style="font-family: Calibri"><span style="color: #000000"><span>Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom. </span></span></span></p>
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Tamil Nadu’s New EV Policy Aims to Mobilize ₹500 Billion for Manufacturing in the State

<p>Indian lead-acid battery manufacturer, Exide Industries (<a href="https://www.exideindustries.com/" target="_blank" rel="noopener noreferrer">Exide</a>), has entered into three share subscription and shareholders agreements with renewable energy developer Cleantech Solar (<a href="https://cleantechsolar.com/" target="_blank" rel="noopener noreferrer">Cleantech</a>) to install captive solar projects at its factories.</p>
<p>In a filing to the Bombay Stock Exchange, Exide stated that it “agreed to subscribe equity shares comprising at least 26% but not exceeding 30% of the issued and paid up share capital of each of the three special purpose vehicle (SPV) companies”.</p>
<p>Following are the three SPVs:</p>
<ul>
<li>CSE Solar Sunpark Tamil Nadu Private Limited</li>
<li>Greenyana Solar Private Limited</li>
<li>CSE Solar Sunpark Maharashtra Private Limited</li>
</ul>
<p>These SPVs would develop the projects at Exide’s factories located in Maharashtra, Tamil Nadu, and Haryana. Exide has also announced that it will procure energy from these solar power projects for its Hosur factory in Tamil Nadu, Bawal factory in Haryana and three factories in Maharashtra.</p>
<p>In January 2019, Mercom <a href="https://mercomindia.com/exide-invest-30-percent-equity-shares-solar-spv/" target="_blank" rel="noopener noreferrer">reported</a> that Exide was going to acquire 30 percent equity stake in three SPVs which would develop projects costing approximately ₹200.5 million (~$ 2.86 million), with Exide as the captive user and the three SPVs as the power producers.</p>
<p>Exide <a href="https://mercomindia.com/exide-leclanche-joint-venture-li-ion-battery-india/" target="_blank" rel="noopener noreferrer">formed</a> a joint venture with Leclanche in June 2018 to manufacture lithium-ion batteries and provide energy storage systems for India’s electric vehicle market and grid-based applications.</p>
<p>Singapore-based Cleantech Solar which focuses on financing, constructing, owning and operating solar rooftops projects is expected to be the developer of the captive plants. <a href="https://mercomindia.com/prism-johnson-30-percent-stake-cleantech-spv/" target="_blank" rel="noopener noreferrer">In a similar deal in November 2018</a>, <a href="http://prismjohnson.in/" target="_blank" rel="noopener noreferrer">Prism Johnson Limited</a> (formerly Prism Cement) entered into a deal with Cleantech to acquire up to 30% equity stake in a special purpose vehicle which would be incorporated for setting up captive solar power projects of 22 MW capacity. The 30 percent equity stake was said to have an approximate value of ₹100 million (~$ 1.39 million).</p>
<p>Last year, Cleantech <a href="https://mercomindia.com/shell-acquire-49-percent-stake-cleantech/" target="_blank" rel="noopener noreferrer">announced</a> that Shell Eastern Petroleum Ltd (<a href="https://www.shell.com/energy-and-innovation/new-energies.html" target="_blank" rel="noopener noreferrer">Shell</a>) would acquire a 49 percent interest in the company.</p>
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<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/shaurya-bajaj/" class="vcard author" rel="author"><span class="fn">shaurya</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><span style="font-family: Calibri"><span style="color: #000000"><span>Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom. </span></span></span></p>
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Cleantech Solar to Install Captive Solar Projects for Battery Maker Exide Industries

<p>India could account for more than one-third of the global market for electric vehicle (EV) batteries by 2030 if it becomes a 100% EV nation, found a <a href="http://niti.gov.in/writereaddata/files/document_publication/India-Energy-Storage-Mission.pdf" target="_blank" rel="noopener">study</a> conducted by the <a href="http://niti.gov.in/" target="_blank" rel="noopener">Niti Aayog</a> and <a href="https://www.rmi.org/" target="_blank" rel="noopener">Rocky Mountain Institute</a>. The study also revealed that India’s market for EV batteries alone could be worth as much as $300 billion (~₹19.38 trillion) from 2017 to 2030.</p>
<p>The study also found that, batteries today account for about one-third of the total purchase price of an EV. To drive down battery costs, production must be scaled, and battery components need to be standardized to be a key element in the long-term success of India’s automotive sector.</p>
<p>In turn, India&#8217;s EV mission could drive down global battery prices by as much as 16 percent to $60 (~₹3876) per kWh. Given the projected scale of its domestic market, India could support global-scale manufacturing facilities and eventually become an export hub for battery production.</p>
<p>Analysis by NITI Aayog and the Rocky Mountain Institute indicates that domestic battery manufacturing to supply the transition to EVs is an important market opportunity for the Indian economy. It would bring economic and social benefits from reduced oil imports, improved public health, and increased integration of renewable energy supplies into the electric grid.</p>
<p>According to the analysis, it has been estimated that 25 to 40 percent of the total economic opportunity represented by battery manufacturing for India’s EV market can be captured in India even under the least favorable scenario, where India imports all lithium-ion cells and assembles these cells into battery packs.</p>
<p>India’s cumulative battery requirements between 2026 and 2030 could be at least 2,410 GWh. If India can manufacture both cells and packs while importing only cathodes (depending on technology used), India stands to capture nearly 80 percent of the total economic opportunity, an economic value of ₹9.3–13.7 trillion (~143.68-211.6 billion).</p>
<p>By developing battery manufacturing expertise and scaling its domestic production capacity, India can build long-lasting economic advantage in this key sector. If India develops a battery manufacturing marketplace under the Make in India program, 100 percent domestic manufacturing of batteries would require at least 3,500 GWh of batteries at a wholesale cost of $300 billion (~₹19.38 trillion) from 2017-2030 &#8211; less than half the cost of what would have been spent on importing oil.</p>
<p>To advance the Make in India program, shifting to electric vehicles and batteries allows India to become its own supplier of energy for transportation (electricity produced in India) and a leading manufacturer of the batteries used to store and transport that energy.</p>
<p>India’s electric mobility ambitions could drive global battery demand and manufacturing capacity higher and prices even lower than projected in previous analyses. NITI Aayog and RMI estimate that India would require a minimum of 20 gigafactory-scale battery manufacturing plants, collectively producing approximately 800 GWh of batteries per year by 2030 to support 100 percent EV sales across all types of personal vehicles.</p>
<p>Domestic manufacturing of batteries and EV components could help India’s OEM and technology companies to capitalize on the nation’s aggressive vehicle electrification goals, bolstering India’s competitiveness on the global stage.</p>
<p>The scale of its market opportunity is attracting <a href="https://mercomindia.com/competition-heating-india-ev-sector/" target="_blank" rel="noopener">strong interest</a> from leading companies in India and globally.</p>
<p>Image credit: RMI</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/saumy/" class="vcard author" rel="author"><span class="fn">Saumy Prateek</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Saumy Prateek</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/saumy/" target="_blank" rel="noopener">More articles from Saumy Prateek</a></p>
</div>
<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="79" height="102" /><a href="https://mercomindia.com/author/saumy/" rel="noopener"><strong>Saumy Prateek, </strong> </a>is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism &amp; Mass Communication from the Manipal Institute of Communication at Manipal University.<a href="https://mercomindia.com/author/saumy/">More articles from Saumy Prateek.</a></div>
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