India plans to invest up to Rs 13,000 crore in a new initiative to boost domestic production of critical battery components, aiming to reduce dependency on Chinese imports and accelerate self-reliance in the sector.
India is preparing a fresh battery manufacturing push worth up to Rs. 13,000 crore, in a move designed to reduce reliance on Chinese imports and strengthen the domestic supply chain, according to The Economic Times. The proposal is expected to go before the Finance Ministry’s Expenditure Finance Committee after inter-ministerial consultations, and would add to New Delhi’s broader effort to build a more self-reliant battery industry.
The scheme is expected to support production of five critical inputs: anode and cathode active materials, electrolytes, separator film and copper foil. Those are core parts of battery cells, and Indian manufacturers still depend heavily on Chinese suppliers for much of this material. Reuters has previously reported that the government sees this dependency as both a cost problem and a strategic risk, particularly as battery supply chains become more important for electric vehicles, grid storage and consumer electronics.
The new plan would build on India’s existing advanced chemistry cell programme, launched with an outlay of Rs. 18,100 crore to encourage large-scale domestic battery production. But progress has been slower than hoped. By March, only 40GWh of capacity had been allocated under the 50GWh scheme, and the Ministry of Heavy Industries has cited technology limits, a shortage of skilled workers and difficulties sourcing specialised imported equipment as key obstacles, according to reports by LiveMint.
Any move to strengthen local component manufacturing would likely help companies already positioning themselves in lithium-ion cells and energy storage. Trade Brains identified Exide Industries and Amara Raja Energy & Mobility as potential beneficiaries, given their investments in new-energy businesses. Exide has been developing lithium-ion cell capacity through Exide Energy Solutions, while Amara Raja is building out a battery manufacturing ecosystem in Telangana. Their shares rose on the news, with Trade Brains saying Exide climbed 4.6% and Amara Raja 2.6% in the day’s trade.
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