ACC Market Demand to Increase up to 220 GWh by 2030
According to the newly published CII report on 'Raw Materials for Battery & Component Manufacturing’, the demand for advanced chemistry cell (ACC) batteries in India is predicted to increase at a CAGR of 50 percent from 20 GWh in 2022 to roughly 220 GWh by 2030.
Based on the report, India will likely localize a sizable piece of the entire value chain, from material processing to pack assembly and integration, in order to support the booming domestic battery manufacturing industry and a strong local supply chain.
The research is the third in a series on the ‘Roadmap for Future Mobility 2030’ and was created in conjunction with 6Wresearch.
"EV is determined primarily by the battery running the powertrain of the vehicle. Advancements in the battery technology space are pivotal for the development of better-performing EVs," said Vipin Sondhi, Chairman, CII National Committee on Future Mobility and former CEO & MD, Ashok Leyland and JCB.
Energy storage is anticipated to play a significant part in the overall energy ecosystem given India's commitment to renewable energy and its goal of becoming net-zero by 2070.
The CII research suggested the development of local mines because the nation's reserves, output, and refining capacity for a number of primary minerals, including cobalt, nickel, and copper, are extremely low.
Additionally, the CII research recommended decreasing the customs tariff on essential minerals used in battery production and encouraging the construction of mineral processing facilities to extract necessary minerals.
The CII report also stated that India needs a battery chemical processing industry on par with several other stages of battery manufacturing and various measures in the form of incentives, exemptions from various taxes, etc. This can be accomplished through government incentives, additional funding for R&D, partnerships with nations that have advanced technology for technological collaboration, and easing of regulations related to the chemical industry, including license requirements.
To increase domestic battery cell production, India's government last month announced the re-bidding of production-linked incentives for 20 GWh Advanced Chemistry Cell manufacturing.
The latest generation of sophisticated storage technologies, known as advanced chemistry cells (ACCs), may store electrical energy as either electrochemical or chemical energy and then convert it back to electrical energy as and when needed.
These have numerous important applications, including in consumer electronics, solar rooftops, preserving grid stability, and electric vehicles. Energy storage is anticipated to play a significant part in the overall energy ecosystem given India's commitment to renewable energy and its goal of becoming net-zero by 2070.