PLI Should Focus On EV Cells Manufacturing, Not Batteries: GTRI

PLI Should Focus On EV Cells Manufacturing, Not Batteries: GTRI

SUMMARY

The Global Trade Research Initiative (GTRI) has said that the production linked incentive (PLI) scheme should focus on making electric vehicle (EV) cells or lithium-ion cells and not batteries

GTRI said the government should allow the domestic EV sector to grow naturally without relying on incentives as it would avoid India becoming an 'EV colony' for China as India faces unique challenges not faced by other countries in adopting EVs at large scale

Further, the think tank suggested the government to invest in battery recycling infrastructure and support clean energy sources to power EV charging stations

The Global Trade Research Initiative (GTRI) has said that the production linked incentive (PLI) scheme should focus on making electric vehicle (EV) cells or lithium-ion cells and not batteries as most of the manufacturing and value addition takes place up to the cell-making stage.

As per an ET report, GTRI said the government should allow the domestic EV sector to grow naturally without relying on incentives as it would avoid India becoming an ‘EV colony’ for China as India faces unique challenges not faced by other countries in adopting EVs at large scale.

These challenges include 80% reliance on coal for electricity, frequent power cuts, and dependence on imported batteries and critical minerals for EV production.

“Since India does not have the expertise in cells making from core inputs, most firms import ready cells and make batteries by putting these cells in a box which is a superficial assembly work. PLI should not support such unsustainable operations,” Ajay Srivastava, GTRI founder told ET. 

He added that the existing scheme for advance chemistry cell battery production has yielded no commercially viable results.

The global EV market is undergoing a significant shift, with the US, EU, and Canada imposing high tariffs and restrictions on imports of EVs and parts from China. These regions account for about half of China’s global EV exports, the report said.

Further, the think tank suggested the government to invest in battery recycling infrastructure and support clean energy sources to power EV charging stations.

It also advised strengthening environmental regulations for EV manufacturing and disposal to reduce the carbon footprint and other negative impacts associated with EV production.

Additionally, speeding up the shift to a cleaner energy mix by adopting more renewable energy sources, such as solar and wind, will reduce the carbon intensity of the electricity used to charge EVs.

It also recommended prioritising long-term sustainability by assessing the full lifecycle environmental impact of EVs, from production to disposal, to minimise carbon emissions and environmental harm.

This comes a month after electric two-wheeler startup Ola Electric’s S1 X escooter model (both 3 kWh and 4 kWh) received domestic value addition (DVA) certification needed to be eligible for the Production Linked Incentive (PLI) scheme for automobile and auto components.

Ola became the first Indian electric two-wheeler (e2W) company to become eligible for the government’s PLI scheme.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

PLI Should Focus On EV Cells Manufacturing, Not Batteries: GTRI-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

PLI Should Focus On EV Cells Manufacturing, Not Batteries: GTRI-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

PLI Should Focus On EV Cells Manufacturing, Not Batteries: GTRI-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

PLI Should Focus On EV Cells Manufacturing, Not Batteries: GTRI-Inc42 Media
PLI Should Focus On EV Cells Manufacturing, Not Batteries: GTRI-Inc42 Media
You’re in Good company