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Reliance, Ola Electric and Mahindra bid for incentives under India’s battery scheme

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NEW DELHI – India’s Reliance Industries, Softbank Group-backed Ola Electric and automaker Mahindra & Mahindra have submitted bids under the country’s $2.4 billion battery program, the report said on Saturday. government.

India finalized an incentive program https://bit.ly/3fmg3p5 last year to encourage companies to invest in local battery manufacturing as it seeks to establish a national supply chain for clean transportation and building storage for renewable energy.

Hyundai Global Motors, engineering conglomerate Larsen & Toubro and battery makers Amara Raja and Exide have also submitted bids, the heavy industries ministry said.

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“The program contemplates an investment that will boost domestic manufacturing…and foreign direct investment into the country,” the ministry said.

India wants to establish a total of 50 gigawatt-hours (GWh) of battery storage capacity over five years, which it says will attract direct investment of about $6 billion.

To benefit from the incentives, companies must put in place at least 5 Gwh of storage capacity and meet certain local content conditions, which would require a minimum investment of more than $850 million.

Ten companies submitted bids totaling around 130 Gwh, the ministry said.

India was also encouraging global companies https://reut.rs/3ntv4K3 such as Tesla Inc, Samsung, LG Energy, Northvolt and Panasonic to invest.

Clean car technology is a key part of India’s strategy to reduce pollution in major cities and reduce dependence on oil. But electric vehicles (EVs) currently account for a fraction of total sales in the country, mainly due to their high price as the batteries are imported.

The South Asian country wants electric cars to make up 30% of passenger car sales by 2030 and electric motorcycles and scooters to make up 40% of those sales, driving demand for batteries that currently account for around 35 % to 40% of total vehicles. Cost. (Reporting by Aditi Shah; Editing by Kirsten Donovan and Ros Russell)