ENA Sectors 2025-01-16 14:07:29 <p><span style="font-size:14px"><strong>New Delhi, Jan 16 (KNN)</strong> The Ministry of Heavy Industries (MHI) is crafting a comprehensive scheme to boost domestic value addition (DVA) in electric vehicle battery manufacturing, encompassing financial lending support and business facilitation measures.</span></p> <p><span style="font-size:14px">The initiative aims to strengthen India's position in the growing electric vehicle sector.</span></p> <p><span style="font-size:14px">Speaking at the India Battery Manufacturing and Supply Chain Summit 2025 in Delhi, MHI Joint Secretary Vijay Mittal revealed that the ministry is preparing a concept note to unite policymakers around specific schemes supporting battery component manufacturing.</span></p> <p><span style="font-size:14px">The initiative will address financial systems, policy regulations, and ease of doing business considerations.</span></p> <p><span style="font-size:14px">The focus on domestic manufacturing aligns with existing production linked incentives (PLI) for the automotive sector, which requires a minimum 50 percent DVA for companies to qualify for subsidies.</span></p> <p><span style="font-size:14px">Mittal emphasised that manufacturers achieving over 50 percent DVA in products like advanced chemistry cell (ACC) batteries are classified as Class 1 suppliers, reflecting their meaningful contribution to domestic manufacturing goals.</span></p> <p><span style="font-size:14px">Addressing resource sustainability, Mittal highlighted the critical role of recycling in India's battery manufacturing ecosystem.</span></p> <p><span style="font-size:14px">He suggested that effective lithium recycling and reuse in batteries could significantly advance India's self-reliance in cell manufacturing, particularly given limited domestic lithium resources.</span></p> <p><span style="font-size:14px">The government's commitment to battery manufacturing is evidenced by its 2021 National Programme on Advanced Chemistry Cell Battery Storage, which targets a manufacturing capacity of 50 GigaWatt Hour (GWh) of ACC and 5 GWh of Niche ACC, supported by a Rs 18,100 crore budget.</span></p> <p><span style="font-size:14px">Additionally, the government has implemented a viability gap funding scheme for battery energy storage systems, aiming to develop 4 GWh capacity by 2030-31 with Rs 3,760 crore in budgetary support.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 40667 https://knnindia.co.in/news/newsdetails/sectors/govt-developing-new-support-framework-for-ev-battery-manufacturing 2025-01-16 14:07:29 knnindia.co.in