Incentives needed to boost indigenous manufacturing of battery components: CEA

The centre should introduce targeted incentives to boost domestic manufacturing of critical
battery components
such as anodes, cathodes, and electrolyte salts to reduce import dependency and strengthen the energy storage ecosystem, according to recommendations made at a recent Central Electricity Authority (CEA) workshop.
Held in Delhi on May 8, 2025, the national workshop on 'Renewable Energy (RE) Integration through
Energy Storage Systems
(ESS)' brought together stakeholders from government, industry, and research institutions to identify bottlenecks and propose actionable solutions to promote battery manufacturing.
Participants noted that while India has made progress in cell manufacturing, the country remains heavily dependent on imports for key components like cathode and anode materials, separators, electrolytes, and battery management systems. The absence of local manufacturing for these parts increases project costs and raises supply chain risks.
'There is a need to promote local manufacturing of critical battery components and create a domestic ecosystem to ensure long-term sustainability of the battery energy storage sector,' the workshop report stated.
The workshop underlined that incentives for domestic manufacturing of battery components are critical to drive scale and bring down costs. These include demand aggregation mechanisms, viability gap funding (VGF), and targeted support through the Production Linked Incentive (PLI) scheme.
The discussion also highlighted the need to integrate the
battery value chain
with India's broader industrial ecosystem and raw material sourcing strategy. 'Currently, about 90 per cent of
critical minerals
required for cell production are imported. India must secure long-term supplies through global partnerships, mineral exploration, and recycling,' the report noted.
On technology front, stakeholders emphasised the need to support indigenous R&D and develop alternatives to lithium-ion chemistry. With significant interest in sodium-ion, zinc-ion, and flow battery technologies, experts called for increased government funding for pilot projects and testing infrastructure.
The workshop concluded with a call for a multi-pronged strategy involving incentives, regulatory clarity, and public-private partnerships to develop a robust and self-reliant battery manufacturing ecosystem.
The workshop was attended by officials from the Ministry of Power, Ministry of Mines, Bureau of Energy Efficiency (BEE), NITI Aayog, NTPC, SECI, industry leaders, and battery manufacturers. The initiative was part of India's efforts to scale up battery energy storage to support the 500 GW non-fossil fuel target by 2030.

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