ACC batteries’ demand to grow at a CAGR of 50%, says CII report

  • Industry News
  • Aug 30,23
Raw Materials for Battery & Component Manufacturing, a report by CII in collaboration with 6Wresearch reveals that India is experiencing a robust demand of ACC batteries. By 2030, the anticipated demand for advanced chemistry cells to reach 220GWh.
ACC batteries’ demand to grow at a CAGR of 50%, says CII report

The CII report titled 'Raw Materials for Battery & Component Manufacturing,' indicates a growing compound annual growth rate (CAGR) of 50 per cent in the demand for advanced chemistry cell (ACC) batteries in the Indian market. This demand is anticipated to increase from 20 GWh in 2022 to approximately 220 GWh by the year 2030.

The report is prepared in collaboration with 6Wresearch, is the third in a series of 'Roadmap for Future Mobility 2030' reports. It stated that India is anticipated to achieve localisation across a substantial segment of the complete value chain. This localisation spans from material processing to pack assembly and integration, aiming to bolster the burgeoning domestic battery manufacturing sector and establish a strong local supply network.

“EV is determined primarily by the battery running the powertrain of the vehicle. Advancements in the battery technology space is pivotal for the development of better-performing EVs," quoted Vipin Sondhi, Chairman, CII National Committee on Future Mobility and former CEO & MD, Ashok Leyland and JCB to PTI. "It is imperative for India to not only strengthen the national battery raw materials and manufacturing set-up but also to become a globally trusted supplier of high-quality, innovative battery materials to counter the Chinese supremacy in the domain."

The CII report has proposed the advancement of domestic mining activities due to the insufficient reserves, production, and refining capacity of key minerals like cobalt, nickel, and copper within the country.

Furthermore, the report from CII advocates for the reduction of customs duties on essential minerals used in battery manufacturing. It also emphasises the importance of encouraging the establishment of mineral processing plants to extract necessary minerals.

The report additionally highlights the necessity for India to establish a battery chemical processing sector that is on par with other stages of battery manufacturing. To achieve this, the report suggests implementing various measures such as government incentives, tax exemptions, increased funding for research and development, collaborations with technologically advanced nations, and simplification of regulations related to chemical industry operations, including obtaining licenses and environmental clearances.

Just last month, the government made an announcement about reopening the bidding process for production-linked incentives for the manufacturing of 20 GWh Advanced Chemistry Cells. This initiative, worth Rs 18,100 crore, aims to enhance local production of battery cells in India.

Advanced Chemistry Cells (ACCs) represent the latest generation of cutting-edge energy storage technologies. They are capable of storing electric energy in both electrochemical and chemical forms, which can be converted back into electric energy whenever needed.

ACCs find significant applications in electric vehicles, grid stability maintenance, solar rooftop installations, consumer electronics, and more. Given India's commitment to renewable energy and its goal of achieving net-zero emissions by 2070, energy storage is poised to play a pivotal role in the broader energy landscape.

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