The Economic Survey 2024-25 has called for increased spending on R&D in advanced battery technologies such as Sodium–ion and Solid-state batteries to strengthen the electric vehicle ecosystem in the country.

Government initiatives like FAME, PLI for auto components and the scheme for promotion of manufacturing electric passenger cars in India (SPMEPCI) demonstrate India’s awareness to build domestic supply chains, the survey noted.

However, it suggested that going forward, policies for electric vehicles must focus on de-risking supply chains by promoting a more self-reliant ecosystem powered by increased R&D in advanced battery technologies. “Securing intellectual property in this domain can prove invaluable,” the survey said.

In the interim, the government should reward companies manufacturing EV cells (Lithium-ion) as most manufacturing and value addition happens up to the cell-making stage.

At present, India depends on China for 75% of its lithium-ion battery demand with a near negligible production capacity for key components like polysilicon, ingots and wafers, the Economic Survey 2024-25 highlighted.

(The story will be updated shortly.)

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