India’s lithium gigafactory ambition raised to 50 GW, tender likely soon

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From pv magazine India.

Domestic and overseas manufacturers could soon be invited to set up 50 GW of lithium-ion battery production capacity in India with the government set to consider proposals for financial incentives such as subsidies and duty cuts within a week. That would mean a raised ambition from the previously stated 40 GW aim of the government’s ‘lithium gigafactories’ initiative.

“Financial incentives could include reducing minimum alternate tax [duty] by half and import and export duty waivers or cuts for eight years for successful bidders,” stated a quote attributed to a senior official from government thinktank NITI Aayog in a report in the Economic Times newspaper.

To ensure timely establishment of the hoped-for manufacturing base, bidding and project completion timelines are expected to be stringent.

“NITI Aayog will have to conclude the bidding in six months from cabinet approval … the companies will have to set up the manufacturing facilities by 2022, after which they will get the incentives for eight years until 2030,” the official reportedly told the newspaper.

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The government has already sought proposals from states about land availability and potential waivers for battery manufacturers. In all, 5-20 locations are likely to be identified. Companies would be invited to bid for setting up battery plants at shortlisted locations.

Telangana has pitched for a 5 GW lithium ion plant by announcing the ready availability of 200 acres of land plus power and water for the fab at a concessional rate.

The India Energy Storage Alliance expects the market for energy storage to rise to more than 300 GWh by 2025. India currently imports almost all its li-ion batteries and cells. With its ambitious lithium gigafactories plan, the government hopes to cut the country’s dependence on imports as it aims to ensure 30% of road vehicles are electric by 2030.

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