The Advanced Chemistry Cell Battery Reuse and Recycling Market in India 50
2.2.2. Cell component Apart from the PLI scheme, GoI is pushing for
manufacturing local manufacturing of LIBs and advanced
cells through increased import duty on lithium
Globally, Asia dominates in cell component
materials globally, while Japan and Korea
Several companies have started setting
case of anode material manufacturing, up manufacturing units in India under
Leclanche’s Nexcharge, Toshiba–Denso–
Lucas TVS–24M Technology.
45
Battery pack manufacturing
Cells form the functional component of
Cell manufacturing batteries; they are assembled into modules
Lithium cell manufacturing involves the and then into battery packs. However,
assembly of cell components. Currently, there in order to ensure safe operation of the
is only one manufacturing unt for lithium cells batteries, the modules need to be integrated
in India, and demand for battery cells is met properly with the battery management
manly through imports. Asian companies, system and the thermal management system.
To ensure mechanical stability, a metal or
plastic jacket also needs to be added. Some
sensors and controllers are also needed
dominate LIB cell manufacturing.
To reduce import dependency for LIBs, GoI’s
new PLI scheme, the National Programme Battery pack manufacturing represents
on ACC, aims to increase cell manufacturing the integration of all these elements of the
in India. Through this scheme, GoI intends battery. On average, the battery module
to optimally incentivise potential investors,
both domestic and overseas, to set up giga- battery weight and the remainder is made up
scale ACC manufacturing facilities with an of cells.
emphasis on maximum value addition and
quality output and achieving pre-committed Some EV manufacturers in India have
developed battery pack assembling facilities
period.46 The total outlay is INR18,100 crore in-house and use cell units imported from
China or elsewhere. This strategy helps them
was released in October 2021 for opening to protect their intellectual property rights and
strengthen their value proposition to their
customers and investors.
45
europe-battery-production/
46
51 The Advanced Chemistry Cell Battery Reuse and Recycling Market in India
Other Indian players in the market are Battery reuse can also involve creating price
entering the LIB manufacturing business discovery for EOL batteries, which will be
higher than the scrap value of the batteries.
and untapped market potential. For example, This will help in creating new business models,
many traditional LAB manufacturers have such as a buy-back model by OEMs, which
stepped into the LIB business catering to can help reduce the battery replacement
both business-to-business and business-to- cost for old vehicles.
consumer market segments.
Key players who have started out in this
sector include Nunam, Ziptrax Cleantech, etc.
2.2.3. Reuse of batteries
Second life is another key component of 2.2.4. Recycling of batteries
the battery value chain. EV batteries have
greater scope for reuse. EV batteries are in LIBs are composed of pure metals and
general designed for high performance in metal alloys along with certain chemical
terms of charge/discharge rates, lifecycles and plastic parts. These cells are almost
and thermal tolerance. They are generally completely recyclable with the use of
appropriate technologies. Recycling rates
batteries at EOL may still have some healthy
modules that can be reused directly for other recovery from the cells.
EV applications; or, the entire pack itself
can be used for other stationary storage The recycling of batteries can be conducted
applications. The used EV battery may be
suitable for certain applications like invertor technologies, such as mechanical recycling,
backup for homes or RE storage at grid pyrometallurgy and hydrometallurgy. The use
level, which requires lower charge/discharge of these technologies in addition to pre-
rates. This stationary usage presents great treatment of batteries allows for a higher
opportunities for the reuse of these batteries recovery rate of metals in the battery.
and recovery of some proportion of its overall
cost. The key players in this sector include
domestic players like Attero, Exigo, TATA
The repurposing of the batteries includes Chemicals, Lohum etc., along with some
testing, assessment, cell auditing and
refabrication of used batteries. Several
hundreds of cells that are present in an EV the Indian battery recycling space.
overall health of the battery in a non-invasive
manner, ensuring no damage to the cells. The
second life battery developers use methods
like tracking charge/discharge rates, thermal
imaging and parsing of data from the
battery management system to evaluate the
life of the battery.
The Advanced Chemistry Cell Battery Reuse and Recycling Market in India 52
Chapter 3
Battery storage
market and
potential in India
The Advanced Chemistry Cell Battery Reuse and Recycling Market in India 54
GOI’s goal to shift to a low-carbon Since 2016, the overall market for advanced
economy through adopting clean energy cells, particularly LIBs, has expanded at an
exponential rate, with most of the growth
for energy storage in India. Battery coming from the usage of LIBs in EVs. There
storage has become a reality because of has also been a rise in the demand for LIBs
the energy sector’s growing technology in consumer gadgets.
The trend is anticipated to continue, and
the introduction of ACCs, developing India will remain primarily reliant on imports
unless domestic cell production facilities
are created. Such a heavy reliance on
time-consuming, has become possible. A imports will result in a trade imbalance,
future disruptive battery manufacturing which will have second- and third-order
ecosystem may be created via economic consequences such as currency
coordinated governmental and private devaluation and employment losses.
sector activity.
3.1. Overview of battery storage deployment
in India
The current deployment of LIBs in India
In 2021, consumer electronics
is dominated by consumer electronics,
which comprises smartphones, laptops, energy storage was the biggest
notebooks, tablets, etc. and is further market for LIBs, with a cumulative
expected to grow with the digitalisation of
platforms and the integration of technology
in our daily lives.
Figure 24: Market share of LIBs in India, 2021
24%
Behind the Meter
Consumer
Electronics
16%
51%
Grid Applications
9%
Transport Applications
Source: Authors’ analysis.
55 The Advanced Chemistry Cell Battery Reuse and Recycling Market in India
The smartphone market in India has recorded 2021. The UPS and inverter backup market in
making it one of the most lucrative markets in
the world. however, the overall battery energy storage
The next big segment is the BTM LAB segment. The IT sector, especially data
applications, which includes inverter and centres, remain the biggest consumers of UPS.
UPS backup, telecoms and diesel gensets.
in production is also booming, and that is
were deployed in the telecom sector till contributing to the increase in the use of UPS.
3.2. Recent tender and battery energy storage
projects
GoI has been promoting battery storage prominent storage tenders that are under
adoption through tenders for grid- various stages of development are listed in
connected battery storage. Some of the Table 5.
Table 5: Battery energy storage projects in India (commissioned and pipeline)
Battery storage project Location Capacity
(MWh)
Jammu and Kashmir 50
Jammu and Kashmir 3.2
Jammu and Kashmir 42
Pan India 1000
Pan India 150
Pan India 3900
Chhattisgarh 150
Telangana 1
Andhra Pradesh 40
Andaman & Nicobar 120
Islands
Andaman & Nicobar 1
Islands
Puducherry 1.5
Tamil Nadu 3
The Advanced Chemistry Cell Battery Reuse and Recycling Market in India 56
Lakshadweep 2.15
Lakshadweep 60
Gujarat 15.15
Delhi-NCR 0.52
Delhi-NCR 0.51
Delhi-NCR 0.9
Delhi-NCR 0.41
Delhi-NCR 0.647
Delhi-NCR 10
Himachal Pradesh 1
Andhra Pradesh 1
Andaman & Nicobar 8
Islands
Andhra Pradesh Eastern Power Distribution Company Limited Andhra Pradesh 4
Andhra Pradesh 3200
Tamil Nadu 3
Rajasthan 1000
Total 9879.987
3.3. Policies and regulations supporting
battery storage deployment
Policy and regulatory frameworks are the battery manufacturing plants. These two
biggest drivers in terms of mobilising market assessments, critical at central and state
penetration for the adoption of battery levels, are presented below.
manufacturing technologies. It is important,
at the central level, to have a stable policy
framework with minimal amendments that 3.3.1. Key policies and
provides adequate support mechanisms interventions at central level
to investors as they plan and develop
their entry strategy for Indian markets. At the central level, GoI has launched
Additionally, assessments at the state level programmes like Make In India, the National
are of equal importance, considering the Smart Grid Mission and the National
plethora of enabling policies provided Programme on ACC Battery Storage to push
by state governments in the form of EV, the agenda of domestic manufacturing in
industrial and battery storage policies, and India. The aim is to help build an ecosystem
deciding on the best location for setting up of domestic battery manufacturing and R&D,
57 The Advanced Chemistry Cell Battery Reuse and Recycling Market in India
being realised in India. The National Policy 2025. The National Energy Storage Mission
on Electronics, released in February 2019, has also agreed on the need to create
stressed promoting domestic manufacturing policy and regulatory frameworks for battery
and exporting in the entire value chain of manufacturing growth, scaling supply
electronics system design and manufacturing chain strategies and scaling of battery cell
for economic development, with a target manufacturing.47
Figure 25: A glimpse of national-level policies over the years in India
National Smart Grid National Mission on National Programme
Mission (Draft) Launch Transformative Mobility on ACC Battery
by Ministry of Power and Battery Storage Storage
• Development of smart • Phased Manufacturing • Achieving
gird and mini grid manufacturing
projects with a total
support domestic cell
crore manufacturing
• Enable access to and • Creation of a PMP valid • The PLI scheme will
availability of quality be implemented by
power to all through localise entire value Department of Heavy
RE power and energy chain of EV production Industry with an outlay
energy storage
storage
GoI’s policy framework in the recent past development of a competitive domestic
aims to upgrade the manufacturing sector manufacturing ecosystem, focusing on
for it to work towards practical solutions to maximum value capture within India. Cabinet
add value and create new products, thereby approval for the mission was given on 7th
developing a niche market. The intention is March 2019, with the programme chaired by
to create forward and backward linkages in NITI Aayog. The mission will serve as a cross-
manufacturing to create a strong multiplier cutting/multi-disciplinary platform and take
feedback from concerned ministries. Its vision
export competitiveness, thereby supporting includes developing a Phased Manufacturing
battery storage deployment in the country.
integrated cell and battery manufacturing
[Link]. National Mission on plants, focusing on global benchmarking to
Transformative Mobility and Battery ensure export competitiveness, transparent
Storage procurement and domestic demand creation
The National Mission on Transformative
Mobility and Battery Storage is a central a PMP for localising production for the EV
government programme aiming to supply chain till FY 2024.
boost mobility solutions and encourage
47
The Advanced Chemistry Cell Battery Reuse and Recycling Market in India 58
Figure 26: Key roles, roadmap and anticipated impact envisaged under the National
Mission on Transformative Mobility and Battery Storage
Role Roadmap Impact
• Localising EV • Building giga-scale • Improving air quality
production across integrated cell in cities, cutting oil
the entire value chain factories by 2021-22, import dependence
through a PMP followed by large- and increasing the
scale module and use of renewable
• Integrating various pack assembly plants energy and storage
initiatives to transform by 2019-20
mobility and storage • Enabling India to
in India through • Achieving holistic
coordinating with growth and expansion scale to develop an
of the Indian battery
departments/states manufacturing manufacturing
industry through the ecosystem
PMP
[Link]. National Programme on ACC
Battery Storage through the National Programme on ACC
In May 2021, GoI approved implementation Battery Storage to reduce dependence
of its PLI scheme, providing an outlay of on imports and support the Atmanirbhar
Bharat initiative.
achieve manufacturing capacity of 50
Figure 27: Key features of the ACC PLI scheme
Transparent competitive bidding under the quality- and cost-based
selection mechanism of ACC manufacturing and commissioning
within two years
Manufacturer must commit to set up an ACC manufacturing facility
of minimum 5 GWh capacity with a maximum capacity of 20 GWh
Ensure a minimum of 25% domestic value addition at project level
within two years and 60% domestic value addition within
from the appointed date
density and cycles and increased local value addition
59 The Advanced Chemistry Cell Battery Reuse and Recycling Market in India
This scheme provides incentives in the form
of a subsidy to manufacturers, linked with only for cell manufacturing and not for
output, to help lower the selling price of conventional battery pack assembly, as
cells and enable them to become globally such activities already occur in the country.
competitive. Moreover, according to a Table 6 presents the year-wise breakdown
of the total subsidy.
Table 6: Financial year-wise budgetary provisions (subsidy) (INR crore)
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Total
Set-up of
manufacturing 2,700 3,800 4,500 4,300 2,800 1,8100
facilities
The proposed programme provides two competitive ranking after the tendering
levels of support: pan-support for all cell process. Figure 28 presents the bid
manufacturers and additional support parameters.
to selected manufacturers based on a
Figure 28: Bid parameters for the National Programme on ACC Battery Storage
Bid parameters Net-worth criteria Bid security
The bid shall comprise The bidder must A bidder is required
have a net worth to deposit a bid
of INR225 crore security calculated
bid, which shall
maximum cap of INR225 crore per
INR1,500 crore
of weightage
The scheme received an encouraging bidders, Quality & Cost Based Selection
response from local as well as global
investors with bids of 2.6 times the bidders were ranked according to their
manufacturing capacity being received.
The ACC capacities have been allocated
evaluation of the 10 bids, 9 companies were in order of their rank, till a cumulative
found to be responsive while meeting the
list of companies were selected and
waitlisted under the program:
The Advanced Chemistry Cell Battery Reuse and Recycling Market in India 60
Table 7: List of ACC PLI Selected Bidders
Applicant Capacity quoted Status Capacity awarded
(GWh) (GWh)
Rajesh Exports Limited Awarded
Hyundai Global Motors Company
Awarded
Limited
Ola Electric Mobility Private
Awarded
Limited
Awarded
Reliance New Energy Solar Limited
Mahindra & Mahindra Limited -
Exide Industries Limited -
Larsen & Toubro Limited -
Amara Raja Batteries Limited -
India Power Corporation Limited -
State governments will also be major instrumental in putting India on the world
contributors to the success of the map in terms of advanced chemistry
programme, as they are encouraged to storage manufacturing. Establishing battery
provide additional incentives to shortlisted storage facilities is anticipated to bring in
for setting up manufacturing facilities. In well as environmental advantages in terms
turn, this will contribute to state economies of reducing GHG emissions, reliance on
and job growth. The scheme is therefore conventional fuel sources and oil imports.
• Reduction of GHG and CO2 emissions that would have resulted from
the deployment of conventional fuel options
Environmental
• Assistance in meeting environmental/sustainability targets of GoI
• Advanced cell storage adoption at grids will enable RE integration
• Increasing number of employment opportunities
• Increasing opportunity for skills development, incubation centres and
Social entrepreneurship programmes
leading to more R&D opportunities
• Improved state GDP and export competitiveness
• Increase in foreign direct investment, with an investment opportunity
Economic
of INR8,000 crore
• Increase in tax revenue collection