Top firms submit bids under India’s $2.4 bn EV battery scheme

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Reliance Industries (RIL), Hyundai Motor and Mahindra & Mahindra, are among companies that have submitted bids under India’s $2.4 billion battery scheme, Reuters reported.

India last year finalised an incentive program to encourage companies to invest in the manufacturing of EV batteries as it looks to establish a domestic supply chain for clean transport and build storage for renewable energy.

Friday is the last day to submit technical bids.

Softbank Group-backed Ola Electric, engineering conglomerate Larsen & Toubro and battery makers Amara Raja and Exide have also submitted bids.

India wants to establish a total of 50 gigawatt hours (Gwh) of battery storage capacity over five years, which it expects will attract direct investment of about $6 billion.

To qualify for the incentives, companies must set up at least 5 Gwh of storage capacity and meet certain local content conditions, all of which would require a minimum investment of more than $850 million.

Around 10 companies have submitted bids totalling close to 100 Gwh.

India was encouraging global companies such as Tesla, Samsung, LG Energy, Northvolt and Panasonic to invest.

Clean auto technology is a key part of India’s strategy for cutting pollution in major cities and reducing oil dependence. But electric vehicles (EVs) currently make up a fraction of total sales in the country mainly due to their high price as batteries are imported.

The South Asian country wants electric cars to make up 30 percent of private car sales by 2030 and for electric motorcycles and scooters to make up 40 percent of such sales, driving demand for batteries which currently contribute about 35 percent to 40 percent of the total vehicle cost.

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