South Korean media: India challenges China's dominant position in batteries!
On August 4, the South Korean media "Global Economy" published an article stating that India is pushing a large-scale manufacturing stimulus plan to prepare for the surge in battery demand caused by the rapid growth of the electric vehicle and energy storage equipment market.
The "Hindustan Times" reported that India's battery energy storage demand is expected to increase more than 13 times, from 34GW in 2023 to 450GW by 2030. The Indian government is striving to build a self-sufficient battery ecosystem. The Indian government has abolished the basic customs duty on 28 production materials used to manufacture mobile phone batteries through the 2025 federal budget. This is a follow-up measure to the removal of the basic customs duty on 25 key minerals in the previous July budget. According to reports, the new budget aims to strengthen the procurement of raw materials at competitive prices, increase domestic battery production, and reduce reliance on imports by granting additional exemptions for 12 major minerals such as cobalt powder, lithium-ion battery waste, lead, and zinc.
Currently, China holds a dominant position in the global lithium-ion battery manufacturing market, accounting for 77% of global battery capacity and 80% of refined raw material capacity. To address this issue, India is working to strengthen its domestic industry, accelerate manufacturing development, and has launched initiatives such as "Make in India" to achieve self-sufficiency in manufacturing, "National Critical Minerals Mission (NCMM)" to ensure critical mineral supply, and "Production Linked Incentive (PLI) scheme" to increase recycling and advanced technologies.
To secure the raw material supply chain, India is collaborating with Australia and Chile, which have the largest lithium reserves. India and Australia have invested 43.2 million US dollars into a joint venture established by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Indian partners to strengthen cooperation in research and technological development of critical minerals. India and Chile have a long-standing trade relationship, having signed a framework agreement and preferential trade agreement in 2005 to promote bilateral trade including minerals and energy.
However, the media pointed out that although India is making efforts to revitalize its domestic manufacturing industry, ensuring the raw material supply chain remains urgent. India also needs to invest in refining and processing to reduce its reliance on imports, and it stated that it will take about five to six years to quickly increase domestic production, strengthen recycling capabilities, and increase R&D investment.
The "Hindustan Times" pointed out that the main obstacle to the growth of lithium-ion batteries in India is low R&D investment. The total R&D expenditure across all industries in India accounts for only 0.64% of GDP, far below that of China (2.4%) and the United States (3.4%). Low overall R&D expenditure limits investment in battery R&D, thus hindering innovation.
The "Hindustan Times" predicts that India is at a critical moment to achieve self-sufficiency in lithium battery manufacturing, which is crucial for clean energy, digital growth, and industrial expansion. Policies such as the Production Linked Incentive, reduced tariffs, and the National Critical Minerals Mission provide policy momentum, but building a resilient battery ecosystem requires expanding production, secure supply chains, and strong R&D.
Original article: https://www.toutiao.com/article/1839497571589188/
Statement: This article represents the views of the author.