India's Electric Vehicle Economy
Battery Cells: The Heart of an EV
Why battery cells make up a large share of an EV's cost, why India imports most of them, and how the ACC PLI scheme aims to build cell factories.
The battery is the most expensive part of an EV, often around 30 to 40 percent of its cost.
Cells and packs
- Cells are the basic units that store energy.
- Packs combine cells with electronics and cooling.
- India assembles many packs but imports most cells, mainly from China.
Why cells are hard to make
- Large capital investment.
- Complex chemistry and quality control.
- Raw materials like lithium, nickel, cobalt and graphite, mostly processed in China.
ACC PLI
In 2021, India approved an 18,100 crore rupee PLI scheme for Advanced Chemistry Cell (ACC) batteries, targeting 50 GWh of capacity.
- Winners included Ola Electric, Reliance and Rajesh Exports.
- Progress was slower than planned, and some firms faced penalties for delays.
Other investments
Tata’s Agratas is building a large cell factory in Gujarat, and other firms have announced plants.
Chemistries
- NMC: higher energy density.
- LFP: cheaper and safer, now widely used.
- Sodium-ion: emerging, using cheaper materials.
An Indian scooter maker designs its own battery pack, but the cells inside come from China. Local cell factories could capture more value in India.
India mainly assembles packs; most cells are imported.
- Batteries are often 30 to 40 percent of EV cost.
- India imports most cells, mainly from China.
- The 2021 ACC PLI targets 50 GWh of cell capacity.
- Progress has been slower than planned.
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