Lok Sabha Question No. 2304 (UNSTARRED), answered on 2024-12-10
Subject: Lithium Batteries in Electric Mobility
Ministry: HEAVY INDUSTRIES
Asked by: Shri Dushyant Singh

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 2304

ANSWERED ON 10.12.2024

## LITHIUM BATTERIES IN ELECTRIC MOBILITY

## 2304. SHRI DUSHYANT SINGH :

Will the Minister of HEAVY INDUSTRIES भारी उद्योग मंत्री be pleased to state:

(a)  whether  the  Government  has  taken  steps  to  increase  Lithium  availability  for  promoting Electric Vehicles (EVs) in the country, if so, the details thereof and if not, the reasons therefor;

(b)  the  key  objectives  of  the  Production  Linked  Incentive  (PLI)  Scheme  for  Advanced Chemistry Cells (ACC) in the country and how does it aim to reduce the country's dependency on imported ACCs for electric vehicles;

(c) the details of the specific provisions and financial outlay of the scheme and the production targets and the timeline for achieving these targets;

(d) the details and the role of the FAME India Scheme (Phase-II) in promoting electric vehicle adoption and the manner in which it provide incentives for electric vehicle buyers; and

(e) whether the PLI Scheme for the Automotive Sector complement the goals of the electric vehicle market and the impact expected on the domestic EV production ecosystem?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a): As per the information provided by the Ministry of Mines, they have set up Khanij Bidesh  India  Limited  (KABIL),  a  joint  venture  company  with  equity  contributions  from National  Aluminium  Company  (NALCO),  Hindustan  Copper  Limited  (HCL),  and  Mineral Exploration  and  Consultancy  Limited  (MECL).    Its  overarching  mission  is  to  identify  and acquire  overseas  mineral  assets  that  hold  critical  and  strategic  significance,  specifically targeting minerals like Lithium, Cobalt, and others.  KABIL has signed an Exploration and Development Agreement with CAMYEN, a state-owned enterprise of Catamarca province of Argentina, for Exploration and mining of Five Lithium Block in Argentina.  KABIL is also constantly  having  interactions  with  Critical  Mineral  Office  in  Australia  with  the  primary objective of acquiring critical and strategic mineral assets.

(b) & (c): The Government of India approved the Production Linked Incentive scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage (PLI ACC scheme) on 12 th May, 2021, for setting up manufacturing facilities for Advanced Chemistry Cell (ACC), Battery Storage in India.  The Scheme aims to reduce the dependency on imported ACC in India  by  enhancing  India's  manufacturing  capabilities  and  envisages  incentivizing  large domestic and international players in establishing a competitive ACC battery set-up in India.

The budgetary outlay of the scheme is ₹18,100 Crore for a cumulative capacity of 50 GWh for a period of 5 years after gestation period of 2 years.  The scheme has provision for incentive based on the quoted subsidy per KWh by the beneficiary firms and the percentage of value addition achieved on actual sales for manufacturers.  Beneficiary firms must ensure to achieve a value addition of at least 25% within 2 years (at the Mother Unit Level) from the appointed  date  i.e.  Milestone-1  and  raise  it  to  60%  value  addition  within  5  years  from  the appointed  date  i.e.  Milestone-2.    The  performance  and  incentive  disbursement  of  allocated funds shall commence after achieving the Milestone-I by the beneficiary firms.  The details of the scheme may be seen at: https://heavyindustries.gov.in/pli-scheme-national-programmeadvanced-chemistry-cell-acc-battery-storage

(d): Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II (FAME II) was implemented for a period of 5 years w.e.f. 01 st April, 2019 with a total budgetary support of ₹11,500 Crore.  Under FAME India scheme Phase-II, Phased  Manufacturing  Programme  (PMP)  was  introduced  with  the  objective  of  domestic manufacturing of electrical vehicles, its assemblies/ subassemblies and parts/sub-parts thereby increasing  the  domestic  value  addition.  The  details  of  the  scheme  may  be  seen  at: https://heavyindustries.gov.in/fame-ii

(e): The Government approved Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in  India on 15 th September,  2021  for  Automobile  and  Auto Component Industry in India for enhancing India's manufacturing capabilities for Advanced Automotive Technology (AAT) products including electric vehicles with a budgetary outlay of ₹25,938  Crore.    The  scheme  has  provision  for  financial  incentives  to  boost  domestic manufacturing of AAT products with minimum 50% Domestic Value Addition (DVA) and attract investments in the automotive manufacturing value chain.  The details of the scheme may  be  seen  at:  https://heavyindustries.gov.in/pli-scheme-automobile-and-auto-componentindustry

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