India’s Reliance Industries, Softbank Group-backed Ola Electric, and automaker Mahindra & Mahindra have submitted bids under the country’s $2.4 billion battery scheme, the government said on Saturday.
India had finalized an incentive program last year to encourage companies to invest in the local manufacturing of batteries as it looks to establish a domestic supply chain for clean transport and build storage for renewable energy.
Hyundai Global Motors, engineering conglomerate, Larsen & Toubro, and battery makers Amara Raja and Exide have also turned in their bids as per the Ministry of Heavy Industries.
The ministry said the following, “The program envisages an investment which will boost domestic manufacturing… and foreign direct investment in the country.”
India is looking to establish a total of 50Gwh of battery storage capacity over five years, which it expects to attract direct investment to the tune of $6 billion. In order to qualify for incentives, companies have to set up at least 5Gwh of storage capacity and meet certain local content conditions, all of which require a minimum investment of $850 million.
So far ten companies have submitted bids amounting to 130Gwh, the ministry said.
India is also encouraging global companies such as Tesla, Samsung, LG Energy, Northvolt, and Panasonic to invest. Clean auto energy has become a key part of India’s strategy for cutting pollution in major cities and reducing oil dependence.
But Electric Vehicles currently make up a fraction of total sales in the country mainly due to their high price as batteries are imported.
The South Asian country is looking to bump the sales of electric cars up to 30% by 2030 and for electric motorcycles and scooters to make up 40% of such sales, driving demand for batteries that contribute nearly 35-40% of the total vehicle cost.
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