India's Battery Manufacturing Dilemma: Lithium Dependence on China
Maruti Suzuki India's Chairman highlighted the challenges of lithium dependency on China, which deters battery cell manufacturing investments in India. High capital costs and supply risks are significant concerns. Despite this, Maruti's subsidiary TDSG has made strides in localizing lithium-ion battery cell production.
Concerns over India's reliance on China for lithium supplies are hindering investments in domestic battery cell manufacturing, according to Maruti Suzuki India Chairman RC Bhargava. Speaking during the launch of Maruti Suzuki's first electric vehicle, the e-VITARA, Bhargava addressed the challenges facing the industry due to this dependency.
The production of lithium-ion battery cells within India is still nascent, with most operations focusing on packaging cells into batteries rather than actual cell production. High startup costs and limited access to raw materials further exacerbate the issue, leaving investors cautious about committing to such capital-intensive projects.
Still, Bhargava remains optimistic about future developments, noting that TDS Lithium-Ion Battery Gujarat Pvt Ltd has made headway by localizing electrode-level lithium-ion battery production, underscoring the potential for India to grow its domestic battery manufacturing capabilities.
(With inputs from agencies.)
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