To intensify the promotion of green energy, the Indian government will subsidize the local productions of lithium batteries at an annual scale of 50 GW, which will cost around 7 billion rupees.
The plan aims to supply the needs of electric cars, mobile phones, and other consumer electronics products in the country.
An open international bidding will be held in December for the 10-year subsidy program, which will be accompanied by such incentives as accelerated depreciation and zero tariffs for the imported key items.
It is estimated that India will need approximately 600 GW/hour of batteries by 2030. As a whole, 1000 GW/hour will be good for the power consumption of 100,000 Indian households or for powering 30,000 electric cars a year.
In addition to maintaining localized production, another key condition for the bidders is sufficient production scale. After winning the contracts, the production must begin by 2022 and reach the pledged scale by 2025. The government is considering to set the minimum production scale at around 5 GWH, which will allow the subsidy program to accommodate 10 manufacturers.
It is estimated that a battery factory with a 5GWH annual capacity will involve an investment of around US$500 million.