New Delhi : India’s move towards a 100 per cent electric vehicle (EV) fleet by 2030 could create a USD 300 billion domestic market for EV batteries, according to a report by government think tank Niti Aayog and the The sub-continent would account for two-fifths of global EV battery demand by then and the shift to the clean energy fuel could necessitate an investment of USD 100 billion, to set up 20 giga factories to produce batteries, based on current costs.
A gigafactory is a production site that is representative of NASDAQ-traded Tesla Inc’s battery manufacturing facility located in Nevada, USA, which has a total manufacturing capacity of 35Gwh per annum and required an investment of USD 5 billion, reports PTI.
In line with India’s aspiration to have 100 per cent EV sales by 2030, India can rise among the top countries in the world in manufacturing batteries, the report said. Titled ‘India’s Energy Storage Mission: A Make in India opportunity for globally competitive battery manufacturing’, the report said the country’s ambitious target for EVs is a “game changer and its achievement could drive down costs and build production scale faster than anticipated in existing projections.” The USD 300 billion domestic market for electric vehicle (EV) batteries by 2030 would represent nearly two-fifths of global EV battery demand, according to the report.
Commenting on the findings, NITI Aayog CEO Amitabh Kant said, “India’s mobility transformation presents an enormous economic opportunity for India.” Innovative business models and supportive policy frameworks can help make India a global hub for manufacturing electric vehicles and their components, accelerating this transition while creating jobs, strengthening Indian industry, and cleaning the air, he added.
Rocky Mountain Institute Managing Director (India) James Newcomb said while the global energy transition is already underway and moving with breathtaking speed, many forecasts have not taken into account India’s ambitions in mobility.
“India has an opportunity not only to become one of the largest electric vehicle markets in the world, but also to support electric vehicle adoption globally,” he added.
The report estimated that based on historic learning rates, demand for EV batteries in India could drive down global battery prices by as much as 16 per cent to USD 60 per KWh by 2030 as compared to projections that do not include India’s EV goals.
