ACC battery market set for rapid 50% CAGR growth by 2030: CII Report

vanced chemistry cell battery market in India is projected to experience a substantial growth trajectory, with an anticipated Compound Annual Growth Rate (CAGR) of 50 per cent from 2022's 20 GWh to approximately 220 GWh by 2030, according to a report released by Confederation of Indian Industry (CII) on Sunday.

This growth is expected to be driven by a flourishing local battery manufacturing industry and a resilient local supply chain. Consequently, India aims to localise a significant segment of entire value chain, spanning from material processing to pack assembly and integration, as highlighted in 'Raw Materials for Battery & Component Manufacturing' report.

In collaboration with 6Wresearch, this report, which is part of series 'Romap for Future Mobility 2030', underscores pivotal role of battery techlogy vancements in shaping future of electric vehicles (EVs).

Vipin Sondhi, Chairman of CII National Committee on Future Mobility and former CEO & MD of Ashok Leyland and JCB, emphasised importance of battery techlogy for EV development. 

"EV is determined primarily by battery running powertrain of vehicle. vancements in battery techlogy are pivotal for development of better-performing EVs," said Vipin.

Incentivising development of domestic mines

report recommends incentivising development of domestic mines, especially for minerals like cobalt, nickel, lithium, and copper, which have limited reserves, production, and refining capacity within India. It also proposes reducing customs duty on critical minerals used in battery manufacturing and encouraging establishment of mineral processing plants for mineral extraction.

CII report calls for a robust battery chemical processing industry on par with or sts of battery manufacturing. This could be achieved through governmental incentives, increased research and development funding, techlogical collaborations with vanced countries, and streamlining regulations related to chemical industry, including licences and environmental approvals.

tably, government recently anunced re-bidding of production-linked incentives for 20 GWh vanced Chemistry Cell (ACC) manufacturing, a program with a budget of Rs 18,100 crore aimed at boosting local battery cell production in India. 

ACCs, kwn for ir vanced energy stor capabilities, find applications in electric vehicles, grid stability, solar energy systems, and consumer electronics.

With India's commitment to renewable energy and goal of achieving net-zero emissions by 2070, energy stor is poised to play a pivotal role in overall energy landscape. government's approved 'National Programme on ACC Battery Stor' seeks to achieve a manufacturing capacity of 50 GigaWatt Hour (GWh) of ACC, focusing on domestic value dition and globally competitive battery manufacturing costs.

(With PTI inputs)