This background paper is part of the edited volume India’s Role in Diversifying Global Clean Energy Supply Chains.
Background Paper No. 21
BY Gregory Wischer
SUMMARY
India could help advance the global electric vehicle transition by producing certain goods in segments of the global battery supply chain. Currently, India lacks a sizable production share in any segment of the global battery supply chain, which is largely dominated by China. India does have existing production and significant growth potential in specific segments of the battery supply chain, especially as some countries seek to diversify their supply chains away from China due to geopolitical concerns. For instance, India already produces several of the ancillary raw and precursor materials needed for battery manufacturing, but it uses them for other goods. Yet, India faces other challenges such as limited resources of lithium, nickel, and cobalt. To incorporate India into the global battery supply chain, India and the international community should collaborate on trade, investment and financing, and research.
1. INTRODUCTION
The global automotive industry is experiencing a major transformation. Vehicles fully powered by electric batteries comprise an increasing share of new vehicle purchases. Compared to internal combustion engine vehicles, battery electric vehicles run fully on electricity, not gasoline or diesel. Therefore, battery electric vehicles do not directly emit carbon dioxide, and if the batteries’ electricity source has low or no carbon dioxide emissions, increased electric vehicle adoption can lower carbon dioxide emissions in the transportation sector, helping countries meet climate-related goals. For example, in India, the carbon dioxide emissions of electric vehicles are 8 percent to 24 percent lower than internal combustion engine vehicles over their lifetimes. Transitioning to electric vehicles can also strengthen countries’ energy security by reducing import dependence on oil, and it can increase countries’ economic prosperity by creating new market opportunities. Thus, many countries, including India, are incentivizing electric vehicle adoption.
However, the global manufacturing supply chain for the core part of electric vehicles — their batteries — is dominated by the People’s Republic of China. Given concerns of overdependence on China, many countries are seeking to shift their battery supply chains to other countries, including India. Across all segments of the battery supply chain, India’s production is presently negligible, but Indian companies have existing mineral production, processing expertise, battery cell investments, battery pack assembly capacity, and recycling experience. Specifically, India has the greatest production potential in certain raw materials, precursor materials, lithium-iron-phosphate (LFP) battery cells, battery packs for two-wheeled (scooters, motorbikes) and three-wheeled vehicles (rickshaws), and black mass (shredded end-of-life batteries). Consequently, India could help advance the global electric vehicle transition by producing certain goods in segments of the global battery supply chain.
This analysis seeks to contextualize India’s present and potential role in the global supply chain for electric vehicle batteries. Considering India’s production potential in the battery supply chain, the paper concludes by recommending that India and the international community collaborate on trade, investment and financing, and research in the battery supply chain. Such efforts would further incorporate India into the global supply chain for electric vehicle batteries and thus support the global transition to electric vehicles.
2. THE GLOBAL BATTERY SUPPLY CHAIN AND CHINA’S DOMINATION
The critical part of a battery electric vehicle is the battery pack, which contains individual battery cells made with various materials. The cell contains the following six key components: cathode material, anode material, electrolyte, separator, positive current collector, and negative current collector (Figure 1). The cathode is the most costly part of the battery, representing between 50 percent and 60 percent of battery cell costs, and 90 percent of the cathode material costs are raw materials, which depend on the battery chemistry. The most common cathode chemistries today are nickel-cobalt-manganese (NCM) cathodes and LFP cathodes. The other core part of the battery is the anode, which is mainly graphite. Ultimately, these cell components function together to convert chemical energy into electricity that powers the vehicle.
Source: Author adaptation from McKinsey analysis.
The manufacturing supply chain for electric vehicle batteries proceeds from raw materials and precursor materials to cell components and battery cells and packs, eventually reaching the end of their useful lives when some batteries are recycled and reincorporated into the battery supply chain. The supply chain for producing electric vehicle batteries can be illustrated by the following steps (Figure 2):
Extraction: recovering minerals (like lithium, nickel, cobalt, manganese, and graphite) from a resource, such as hard rock ore.
Processing: refining minerals into precursor materials (for example, transforming natural graphite into spherical graphite).
Cell component production: producing the electrolyte, separator, current collectors, cathode material, and anode material (such as converting spherical graphite into anode material).
Battery cell production: combining the cell components into battery cells.
Battery pack production: assembling the battery cells into battery packs for electric vehicles.
Electric vehicle integration: integrating the battery packs with the electric vehicles.
End-of-life battery: deciding whether to dispose of the end-of-life battery or recycle it.
Recycling: re-using or shredding end-of-life batteries into material (black mass) that can be reprocessed into precursor materials.
As noted, batteries contain significant amounts of raw materials, which are extracted globally (Figure 3). Yet, the companies extracting these raw materials are often from China. For instance, Chinese companies owned between 40 percent and 50 percent of cobalt production in the Democratic Republic of the Congo in 2020. Major non-Chinese mining companies such as BHP and Rio Tinto have generally focused on producing raw materials with larger volumes, like iron ore and aluminum, but they are increasing their mining activities in battery-related raw materials, like nickel and lithium.
In addition to controlling significant raw materials extraction overseas, Chinese companies dominate the downstream segments of the battery supply chain. China comprises a majority of global production for most precursor materials (see Figure 4), and it produces a majority of the world’s cell components, including separators, electrolyte salt, cathode material, and anode material (Figure 5). China is also the leading producer of batteries, with major battery companies like Contemporary Amperex Technology Co., Limited (CATL), Build Your Dreams (BYD), and Guoxuan High-Tech (Figure 5). China is the world’s leading battery recycler too, but the global battery recycling segment is nascent with many governments yet to adopt extensive regulations.
3. INDIA’S POTENTIAL ROLE IN GLOBAL BATTERY SUPPLY CHAINS
Across the battery supply chain, India lacks notable production capacity, but it has existing production and significant growth potential in certain goods. For raw materials, India does not produce lithium, nickel, and cobalt, yet it produces other raw materials necessary in the battery supply chain like copper, graphite, and manganese. For precursor materials, India lacks processing capacity for several precursor materials such as lithium carbonate, but it has expertise producing other precursor materials such as aluminum, refined copper, and phosphoric acid. India also currently lacks production capacity in most cell components, yet Indian companies are building production capacity in cell components like anode material.
Similarly, India does not have sizable production capacity for battery cells (i.e., less than 1 percent of global capacity), but Indian companies are building battery cell production facilities, with LFP chemistries estimated to represent 70 percent of India’s future battery production. Furthermore, India already assembles battery packs for different types of electric vehicles, and with high downstream demand for two-wheeled and three-wheeled electric vehicles and government subsidies for purchasing such vehicles, India has considerable production potential for battery packs in two-wheeled and three-wheeled electric vehicles because downstream domestic demand incentivizes upstream domestic production. Lastly, like most countries, India lacks significant dedicated recycling capacity for electric vehicle batteries, but it does have a robust electronic waste recycling segment.
In short, while India’s present role across the global battery supply chain is negligible, India could become a notable producer of certain goods in the global battery supply chain. These goods include the following:
Raw materials: bauxite, copper ore, natural graphite, synthetic graphite, iron ore, phosphate rock, fluorspar, and manganese ore
Precursor materials: aluminum, refined copper, iron sulfate, phosphoric acid, hydrofluoric acid, and manganese sulfate
Battery cells: LFP cells
Battery packs: packs for two-wheeled and three-wheeled vehicles
Recycled materials: black mass
Raw materials. India has high production potential in bauxite, copper ore, natural graphite, synthetic graphite, iron ore, fluorspar, phosphate rock, and manganese ore, all of which are raw materials necessary to produce different precursor materials. India already produces these raw materials, and it is a major global producer of bauxite, iron ore, and manganese ore (Table 1). Existing raw materials production is a major indicator of potential raw materials production as it means the country has the expertise and capital for producing certain raw materials. India also has reserves or economically recoverable mineral resources, of these raw materials, so it could continue to produce these raw materials.
India has some resources of lithium, nickel, and cobalt too. While these raw materials are some of the highest-cost raw materials in electric vehicle batteries, they are not currently found in economically recoverable quantities in India and are thus not mined. These raw materials may not be economically recoverable for a variety of reasons, including the targeted element’s price, mining capital expenditures, operating costs, metallurgical recovery rates, and deposit grade. However, mineral exploration has been lacking in India, and further exploration may qualify India’s existing resources for these minerals into reserves, or it could discover additional mineral resources. Nonetheless, India is unlikely to find major reserves of lithium, nickel, and cobalt, meaning India has a low production potential in these raw materials.
Precursor materials: India has high production potential in aluminum, refined copper, iron sulfate, phosphoric acid, hydrofluoric acid, and manganese sulfate. Like the raw materials, India has existing production of these precursor materials. While most of India’s production of precursor materials is not destined for the battery supply chain, existing production is again a major indicator of production potential as companies already have access to the capital, expertise, and raw materials to produce precursor materials. Importantly, India’s precursor production for the battery supply chain may increase as India’s demand grows for electric vehicle batteries and incentivizes domestic production of precursor materials.
For precursor materials that India does not currently produce, India has moderate production potential in spherical graphite, which is processed natural and synthetic graphite that eventually goes into anode material. India not only produces the raw materials necessary for producing spherical graphite, but it has also produced spherical graphite in trials. Regarding other precursor materials like lithium carbonate, India has low production potential because it lacks existing capacity and the corresponding raw materials. However, India’s central government may be seeking to import the raw materials to produce precursor materials such as lithium carbonate. In 2019, it created the state-owned company Khanij Bidesh India Ltd (KABIL) to secure overseas mineral supplies, specifically minerals needed in batteries. India could, just as China does, import these raw materials or intermediate products from overseas and process them domestically into precursor materials.
Cell components: India has moderate production potential in positive current collectors, negative current collectors, anode material, LFP cathode material, and electrolyte salt. India produces aluminum and refined copper, which is necessary to manufacture positive current collectors and negative current collectors, respectively. It also has some of the necessary precursor materials for other cell components, such as iron sulfate and phosphoric acid for LFP cathode material. Specifically, Himadri Specialty Chemicals intends to build a production facility for LFP cathode material in Odisha, and the government of India’s International Advanced Research Centre for Powder Metallurgy and New Materials is collaborating with the Hyderabad-based company Altmin to produce LFP cathode material too. For anode material, the Indian company Epsilon Advanced Material is building a production facility in Karnataka, and The Advanced Carbons Company, a subsidiary of HEG Limited, seeks to invest in a production facility for anode material. Gujarat Fluorochemicals and Neogen Chemicals intend to build electrolyte salt plants.
The cell component for which India has low production potential is NCM cathode material given India’s lack of domestically produced lithium carbonate, nickel sulfate, and cobalt sulfate. India does mine manganese ore and produce manganese sulfate, which is necessary in NCM cathode material, and India could indeed import the lithium carbonate, nickel sulfate, and cobalt sulfate necessary to produce NCM cathode material. KABIL is permitted to reach offtake (purchase) agreements with overseas mining companies. These offtake agreements could encompass KABIL purchasing precursor materials like lithium carbonate and transforming them into cathode material domestically. Notably, India has a cost advantage in anode and cathode material production as India’s infrastructure costs are up to 70 percent lower versus other top countries in chemical manufacturing.
Battery cells: India has high production potential in LFP battery cells, as evidenced by 70 percent of India’s future battery production estimated to be LFP chemistries. The Indian company Log9 Materials already produces LFP battery cells for two-wheeled and three-wheeled electric vehicles. India also has moderate production potential in NCM battery cells. Exide Industries, in collaboration with the Chinese company SVOLT Energy, is building a factory for both LFP and NCM battery cells in Bengaluru, which will supply two-wheeled and three-wheeled vehicles. Ola Electric, which has the highest market share in India’s electric two-wheeled vehicle segment, is building an NCM gigafactory with an initial capacity of 5 gigawatt hours (GWh) and a full-scale capacity of 100 GWh in Tamil Nadu.
India’s high production potential in LFP battery cells and moderate production potential in NCM battery cells are bolstered by government subsidies. India’s government offers battery manufacturing subsidies called the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC), which reduces companies’ capital costs for battery cell factories and seeks to increase India’s domestic battery cell manufacturing capacity by 50 GWh in five years. The PLI scheme’s initial recipients for 30 GWh of battery capacity are Reliance New Energy Battery Storage (LFP battery cells), ACC Energy Storage (LFP battery cells), and Ola Cell Technologies (NCM battery cells), with initial production at these gigafactories slated for 2024. State governments like Tamil Nadu are also offering subsidies to incentivize battery cell production.
Battery packs: India has high production potential in assembling battery packs for two-wheeled and three-wheeled electric vehicles given high downstream demand for these vehicles and government subsidies for purchasing these vehicles, which incentivizes domestic battery production for two-wheeled and three-wheeled electric vehicles. Indian companies already manufacture these battery packs, but mainly with cells imported from China. Companies converting battery cells to battery packs in India include Exide Industries, Amara Raja, Aether, and Ola Electric. For example, Nexcharge, a joint venture between Exide Industries and the Swiss company Leclanché SA, has a battery pack facility in Gujarat. Smaller manufacturers in India also produce battery packs. The capital costs for battery assembly are low, with the minimum investment only being $1.3 million in some cases. The expertise required to manufacture battery packs is also relatively low compared to other segments of the battery supply chain. Despite these low barriers to entry, India’s share of global battery pack assembly is low.
However, India’s high production potential in battery packs for two-wheeled and three-wheeled vehicles is supported by the Indian central government’s Electric Mobility Promotion Scheme 2024, which offers purchase subsidies for two-wheeled and three-wheeled electric vehicles with traction battery packs assembled in India. State governments like Karnataka are also offering incentives for battery pack manufacturing, such as exemptions from stamp duties and offers of interest-free loans. Increasing Indian demand for two-wheeled and three-wheeled vehicles will further support increased domestic production of battery packs for two-wheeled and three-wheeled electric vehicles. Two-wheeled and three-wheeled electric vehicles have higher existing and projected market penetration than four-wheeled electric vehicles in India, with two-wheeled and three-wheeled vehicles representing between 90 percent and 95 percent of total electric vehicle sales in India in 2023.
Battery recycling: India currently has companies with moderate production potential in battery recycling. These companies have existing recycling capacity for electronic scrap and waste but also electric vehicle batteries. Indian companies like Attero have announced battery recycling projects, and India has established regulations, namely the Battery Waste Management Rules of 2022, to govern the recycling of these batteries. Indian industry, however, lacks the processing capacity to refine black mass into precursor materials at commercial volumes. As Indian society adopts more electric vehicles, more batteries will reach the end of their useful lives, creating more supply of recycled materials. Notably, India’s volume of end-of-life batteries may grow more quickly than other countries given the shorter lifetimes of batteries for two-wheeled and three-wheeled vehicles.
4. CHALLENGES CONFRONTING INDIA’S BATTERY SUPPLY CHAINS
Despite its production potential in several segments of the battery supply chain, India faces three main challenges in increasing its production in these supply chain segments. First, India lacks reserves of nickel, cobalt, and lithium, which are high-cost raw materials in electric vehicle batteries. All battery chemistries require lithium, and NCM batteries require nickel and cobalt. Given the high cost of these raw materials, companies producing NCM batteries sometimes seek to vertically integrate into upstream mineral production to better control costs, such as by acquiring ownership stakes in raw materials projects. However, India’s lack of domestic reserves for these raw materials restricts vertical integration. Extensive exploration, which could take years, may be required before India’s resources can be qualified as reserves; even then, more years and capital will be required to convert the reserves into mined ore.
A major bottleneck in the battery supply chain is sourcing sufficient raw materials. So far, India’s lack of production in some minerals has not adversely impacted its battery supply chain given limited battery production and sufficient access to overseas raw materials. Yet, India’s access to sufficient raw materials may become a challenge as Indian battery production increases, other companies, especially Chinese companies, secure overseas mineral production, and geopolitical tensions intensify. If India is unable to secure sufficient raw materials domestically or overseas, the lack of these raw materials — especially lithium — may undermine production in downstream segments of the battery supply chain, such as cathode manufacturing.
Second, production facilities across the battery supply chain from mines to gigafactories are capital-intensive, requiring hundreds of millions to billions of dollars in upfront capital investment. To illustrate the cost of raw material production facilities, China’s Zhejiang Huayou Cobalt bought a hard rock lithium mine in Zimbabwe for $422 million and built an accompanying $300 million concentrating facility that can process 4.5 million metric tons of lithium ore into lithium concentrate annually. Similarly, for precursor materials, Chilean company Sociedad Química y Minera (SQM) invested $140 million to build a lithium processing plant in China that can produce 30,000 metric tons of lithium hydroxide annually. Production facilities for cathode material and anode material are also costly. The Chinese electric vehicle company BYD announced its plan to build a $290 million cathode facility in Chile that can produce 50,000 metric tons of LFP cathode annually, and the Indian company Epsilon Advanced Materials intends to build a $650 million anode facility in the United States that can produce over 45,000 metric tons of anode material annually. Battery cell plants are generally the most expensive: Panasonic’s battery cell plant in Kansas will cost an estimated $4 billion and produce an estimated 30 GWh of battery cells annually. Battery pack assembly lines vary in cost depending on their capacity, ranging, for example, from $1.3 million to $160 million.
Adding to the capital challenges, upstream production facilities, like mines and processing facilities, can take several years to become revenue-producing assets. The global average timeline from deposit discovery to commercial mine production is 16 years. Mineral production then takes months or even years to ramp up to nameplate capacity. For instance, Western companies seeking to use an advanced processing method for nickel and cobalt took at least five years on average to ramp up to capacity. Many companies lack the capital to wait such a long time for their assets to generate revenue. Therefore, many companies prefer to buy battery cells and packs from overseas suppliers, instead of producing batteries themselves.
Third, every supply chain step in the EV battery chain, from extraction to battery pack production, requires specialized expertise. Foreign companies and governments, namely China, have been investing in and developing production capabilities in the battery supply chain for decades. For instance, the Chinese company BYD, currently the world’s largest electric vehicle producer and second largest producer of electric vehicle batteries, was founded in 1995, and the Chinese government began prioritizing research and development in electric vehicle technology in its Five-Year Plan in 2001. In 2009, the Chinese government then started significantly subsidizing the industry, providing an estimated $29 billion in subsidies from 2009 to 2022. Therefore, developing expertise along the battery supply chain takes substantial capital and time.
India’s companies and government will face challenges in quickly developing indigenous production in the battery supply chain. For example, Tata Motors sources its electric vehicle batteries from Tata AutoComp Systems, which is a Tata joint venture with the Chinese company Guoxuan High-Tech. Major American automakers similarly rely on non-American companies for batteries and battery manufacturing technology. Also, demand is soaring for skilled labor in India’s electric vehicle industry, but India lacks sufficient labor with the necessary technical expertise. Skilled labor shortages can cause commissioning and ramp-up delays, and it is affecting battery manufacturers globally, even incumbent battery companies.
5. OPPORTUNITIES FOR INTERNATIONAL COLLABORATION
To reduce dependence on China in the global battery supply chain, opportunities for international collaboration exist between India, other countries, and international financial institutions. First, India could export raw materials, precursor materials, LFP battery cells, battery packs for two-wheeled and three-wheeled vehicles, and black mass to other countries. For example, overseas producers of NCM cathode material may lack sufficient manganese sulfate in their home countries or seek to diversify their suppliers; in such a case, India could export manganese sulfate to these overseas producers. Similarly, India, which already exports lead-acid batteries to many countries, could export LFP battery cells and battery packs for two-wheeled and three-wheeled vehicles to countries in South Asia and Southeast Asia. It could continue to export black mass for recycling to South Korea too.
Second, India could import end-of-life batteries from other countries and process them into black mass domestically for domestic use or export them to other markets. Many governments are mandating recycling for end-of-life batteries, but these countries lack adequate recycling capacity. India could import these end-of-life batteries, converting them into black mass that can be processed domestically or, as already occurs, exported overseas. India currently lacks commercial production in converting black mass into precursor materials, like lithium carbonate, but with such production, Indian recycling companies could supply recycled battery materials to companies seeking or mandated to use recycled materials (not virgin materials) in their electric vehicle batteries. Importantly, India should establish standards on importing end-of-life batteries, especially regarding their safe storage, and it should also impose tariffs on imported end-of-life batteries to incentivize the recycling of end-of-life batteries already present in India.
Third, countries seeking investment in their minerals sector could seek investment from India’s central government. As previously noted, India is seeking to invest in overseas mineral resources through KABIL, and it is heavily targeting cobalt and lithium. Currently, it is exploring lithium resources in Argentina, ultimately seeking to develop them into mines, and it is also reportedly in discussions to acquire lithium assets in Bolivia. India could also leverage its membership in the Minerals Security Partnership to vet overseas mineral projects for investment or partner with other member governments in investing in overseas mineral projects. The best candidate countries for Indian investment are those countries with mineral resources but lacking domestic investment or seeking non-Chinese investment, such as Australia and countries in Africa.
Fourth, international financial institutions and other governments’ development financial institutions could financially support battery supply chain projects in India. Many of these financial institutions are targeting projects that support the electric vehicle transition, and they could offer such projects loans and other financial products, including loan guarantees, political risk insurance, supporting infrastructure investments, and technical assistance like grants for feasibility studies and environmental impact studies. If a project receives support from international financial institutions, other financial actors, such as the private sector, will likely be more willing to financially support the project as they view the project as partially de-risked. One specific foreign government entity that may be interested in investing in Indian projects for raw materials and precursor materials is the Japan Organization for Metals and Energy Security (JOGMEC), which has invested in several mineral-related projects overseas. Further down the supply chain, the Japan Bank for International Cooperation (JBIC) and the Japan External Trade Organization (JETRO) could be financing and investment partners for Indian projects, such as cathode material production. Crucially, JBIC is already financing an electric vehicle project in Uttar Pradesh.
Fifth, India and other countries could increase their university-to-university and government-to-government research collaboration. With university collaboration, for example, the Indian Institutes of Technology (IITs) could collaborate with Japan’s University of Tokyo and the United States’ Massachusetts Institute of Technology given their existing battery research. Regarding government collaboration, India’s Ministry of Mines and Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) could expand their existing research collaboration on critical minerals, and India’s government could collaborate with other governments’ research entities, like the U.S. government’s national laboratories. The resulting innovation from this research collaboration could be made available to commercial entities in India and the collaborating countries.
6. CONCLUSION
As the world transitions to electric vehicles, India could advance this transition by playing a producer role in certain segments of the global battery supply chain. Currently, India lacks a sizable production share in any segment of the global battery supply chain, which is dominated by China. India, however, has existing production and significant growth potential in specific segments of the battery supply chain, especially as some countries seek to diversify their supply chains away from China due to geopolitical concerns. For instance, India already produces several of the ancillary raw and precursor materials needed for battery manufacturing but uses them for other goods. Examples of these raw materials include bauxite, copper ore, and iron ore, while examples of these precursor materials include aluminum, refined copper, and iron sulfate.
Due to India’s lack of lithium, nickel, and cobalt reserves, India is unlikely to produce these raw materials, their corresponding precursor materials, and NCM cathode material. However, India could discover more mineral resources, qualify existing mineral resources into reserves, import these materials, use investment and offtake agreements to secure such materials overseas, or increase the recovery of these materials through recycling. In addition to increasing international trade of battery materials and developing domestic technical expertise, capital will be crucial for developing production capacity in India due to the capital intensity of battery supply chain projects. Together, international trade, investment, research collaboration, and finance from development finance institutions could help incorporate India and its companies into the global supply chain for electric vehicle batteries.
ANNEX A
Many sources contributed to the creation of Figure 6 on the battery supply chain and analysis of India’s production capacity and potential.
For latest figures on India’s production of aluminum, bauxite, copper ore, fluorspar, graphite, iron ore, manganese, manganese sulfate, natural graphite refined copper, phosphate rock, and India’s potential production of cobalt, nickel, see Ministry of Mines, “Annual Report 2022–23,” Government of India, March 10, 2023, https://mines.gov.in/admin/storage/app/uploads/6433da09a9f741681119753.pdf.
For figures on India’s production of natural and synthetic graphite, see Fastmarkets, accessed March 6, 2024, https://www.fastmarkets.com/industrial-minerals/graphite; Indian Bureau of Mines, Indian Minerals Yearbook 2021 (Nagpur: Indian Bureau of Mines, December 2022),
https://ibm.gov.in/writereaddata/files/01312023164915Graphite_2021.pdf; Swansy Afonso, “First India EV Battery Plant Takes Shape to Cut China Dependence,” Bloomberg, April 8, 2021, https://www.bloomberg.com/news/articles/2021-04-08/first-india-ev-battery-plant-takes-shape-to-cut-china-dependence; “Sourcing Local, Supplying Global,” Epsilon Advanced Materials, accessed February 29, 2024, https://www.epsilonam.com/.
For the production potential of anode material, see Epsilon Advanced Materials, “Epsilon Advanced Materials (EAM) Announces Investment of $650M Manufacturing Facility in North Carolina to Strengthen EV Battery Industry in the United States,” October 26, 2023, https://www.epsilonam.com/pdf/EAM-NC-Announcement-press-release_Final.pdf; Epsilon Advanced Materials, “Epsilon Advanced Materials (EAM) Announces Investment of $650M Manufacturing Facility in North Carolina to Strengthen EV Battery Industry in the United States,” October 26, 2023, https://www.epsilonam.com/pdf/EAM-NC-Announcement-press-release_Final.pdf; “Epsilon’s Anode Manufacturing Plans and Recommendations to Support Component Manufacturing in India,” EVreporter, October 11, 2023, https://evreporter.com/epsilons-anode-manufacturing-plans-and-recommendation-to-support-component-manufacturing-in-india/; Rishi Ranjan Kala, “TACC to Finalise Land for Anode Manufacturing Facility by December,” The Hindu BusinessLine, December 7, 2022, https://www.thehindubusinessline.com/companies/tacc-to-finalise-land-for-anode-manufacturing-facility-by-december/article66231019.ece.
For the production potential of lithium, see Ministry of Mines, “Lithium Discovery in Jammu and Kashmir,” July 31, 2023, https://pib.gov.in/PressReleasePage.aspx?PRID=1944302.
For the production potential of spherical graphite, see Jacqueline Holman, “Insight Conversation: Shishir Poddar, Tirupati Graphite,” S&P Global, March 4, 2022, https://www.spglobal.com/commodityinsights/en/market-insights/blogs/metals/030422-ic-tirupati-graphite-shishir-poddar; Tirupati Graphite, “Successful Trials of Battery-Grade Spherical Graphite,” press release, February 22, 2021, https://www.rns-pdf.londonstockexchange.com/rns/7618P_1-2021-2-19.pdf; Tirupati Graphite, “Sustainability Report 2021,” 2021, 5, https://tirupatigraphite.co.uk/images/Sustainability%20Report%2021.pdf.
For the production of iron sulfate, many Indian companies sell Indian-origin iron sulfate, usually under the name “ferrous sulphate.” See “Ferrous Sulphate (Dried),” Rishi Chemical Works, accessed March 6, 2024, https://www.rishichemicals.com/product-details/ferrous-sulphate-dried-; “Ferrous Sulphate,” Hemadri Chemicals, accessed March 6, 2024, https://www.hemadrichemicals.com/ferrous-sulphate.html.
For the production potential of positive and negative current collectors, India produces aluminum and refined copper, the precursor materials for positive and negative current collectors respectively, so India has production potential for both.
For the production potential of LFP cathode material, see “India’s First Commercial Lithium-Iron Phosphate Cathode Plant to Be Set up in Odisha,” Swarajya, December 14, 2023, https://swarajyamag.com/amp/story/business/indias-first-commercial-lithium-iron-phosphate-cathode-plant-to-be-set-up-in-odisha; “Pilot Plant to Make Lithium-Ion Cell Raw Material to Open in Hyderabad,” The Hindu, August 17, 2023, https://www.thehindu.com/news/cities/Hyderabad/pilot-plant-to-make-lithium-ion-cell-raw-material-to-open-in-hyderabad/article67206549.ece; and “India’s Push for Self-Reliance: ARCI Collaborates with Altmin to Produce Key Cathode Active Material,” The Hindu BusinessLine, August 17, 2023, https://www.thehindubusinessline.com/economy/india-forays-into-cathode-active-material-production-through-ppp/article67205957.ece.
For the production potential of electrolyte salt, see “GFCL EV Products to Invest Rs 6,000 Cr in Next 4-5 Yrs to Ramp Up Production,” Economic Times, February 7, 2024, https://economictimes.indiatimes.com/industry/renewables/gfcl-ev-products-to-invest-rs-6000-cr-in-next-4-5-yrs-to-ramp-up-production/articleshow/107487647.cms?from=mdr; “Neogen Ionics Completes Land Acquisition in Gujarat to Establish Battery Materials Facility at a Greenfield Site,” Economic Times, December 19, 2023, https://auto.economictimes.indiatimes.com/news/auto-components/neogen-ionics-completes-land-acquisition-in-gujarat-to-establish-battery-materials-facility-at-a-greenfield-site/106112509.
For the production of apatite and rock phosphate, fluorite, hydrofluoric acid, manganese sulfate, phosphoric acid, see Indian Bureau of Mines, Indian Minerals Yearbook 2021, (Part III – Mineral Reviews), including chapter entries published in December 2022 and January 2023, https://ibm.gov.in/writereaddata/files/01312023164709Apatitte_RockPhosphate_2021.pdf; https://ibm.gov.in/writereaddata/files/01312023164851Fluorite_2021.pdf; https://ibm.gov.in/writereaddata/files/168414783664620e7ce759fManganese_Ore_2021.pdf.
For the production of LFP battery cells, see Sameer Fayaz, “Log9 Materials Reveals First Made-in-India Battery Cell Line for EVs,” Hindustan Times, April 21, 2023, https://auto.hindustantimes.com/auto/electric-vehicles/log9-materials-reveals-first-made-in-india-battery-cell-for-electric-vehicles-41682068051681.html; Sahil Kukreja, “Log9 Materials Launches India’s First Lithium-Ion Cell Manufacturing Facility: Details,” Times of India, April 24, 2023, https://timesofindia.indiatimes.com/auto/policy-and-industry/log9-materials-launches-indias-first-lithium-ion-cell-manufacturing-facility-details/articleshow/99688828.cms.
For the production of NCM battery cells, see Jyoti Gulia et al., “Lithium-Ion Battery (LiB) Manufacturing Landscape in India: Market Trends and Outlook,” JMK Research & Analytics, Institute for Energy Economics and Financial Analysis, January 2022, 23, https://jmkresearch.com/wp-content/uploads/2022/02/Lithium-Ion-Battery-Manufacturing-Landscape-in-India_January-2022.pdf.
For project announcements concerning NCM battery cells, see Alisha Sachdev and Tanay Sukumar, “How Ola Electric Scored a 40% Market Share in December,” LiveMint, January 3, 2024, https://www.livemint.com/companies/news/how-ola-electric-scored-a-40-market-share-in-december-11704219620890.html; and “Ola Electric to Give India Its First Gigafactory Next Year: CEO Bhavish Aggarwal,” Economic Times, August 16, 2023, https://economictimes.indiatimes.com/industry/renewables/ola-electric-to-give-india-its-first-gigafactory-next-year-ceo-bhavish-aggarwal/articleshow/102774164.cms?from=mdr.
For the production of battery packs for two-wheeled and three-wheeled vehicles, see Jyoti Gulia et al., “Lithium-Ion Battery (LiB) Manufacturing Landscape in India: Market Trends and Outlook,” JMK Research & Analytics, Institute for Energy Economics and Financial Analysis, January 2022, 12, 22–23, https://ieefa.org/sites/default/files/resources/Lithium-Ion-Battery-Manufacturing-Landscape-in-India_January-2022.pdf.
For the production of battery packs for four-wheeled vehicles, see Jyoti Gulia et al., “Lithium-Ion Battery (LiB) Manufacturing Landscape in India: Market Trends and Outlook,” JMK Research & Analytics, Institute for Energy Economics and Financial Analysis, January 2022, 23, https://ieefa.org/sites/default/files/resources/Lithium-Ion-Battery-Manufacturing-Landscape-in-India_January-2022.pdf.
For the production of battery packs for buses, see Chris Randall, “Tata Motors to Manufacture 1,500 Electric Buses for Delhi,” electrive, January 2, 2023, https://www.electrive.com/2023/01/02/tata-motors-to-manufacture-1500-electric-buses-for-delhi.
For the production of black mass, see Lee Allen, “Recycled Metals to Help Feed India’s Lithium Battery Boom by 2026: MRAI Conference,” Fastmarkets, February 7, 2023, https://www.fastmarkets.com/insights/recycled-metals-to-feed-indias-lithium-battery-boom/; Allen, “India’s Huge EV Battery Gigafactory Plans,” Fastmarkets.
ACKNOWLEDGEMENTS
The author would like to thank Aditya Ramji and Shayak Sengupta for their review, comments, and suggestions on an earlier draft of this paper. The paper is part of ORF America’s Climate and Energy Program work supported by the ClimateWorks Foundation. This background paper reflects the personal research, analysis, and views of the author, and does not represent the position of either of these institutions, their affiliates, or partners.
Note: The footnotes can be found in the PDF file.