India’s Localization of Battery Cells Is Gaining Momentum

In addition to energy security concerns, the Indian government has introduced various policies to promote alternative fuels and electric vehicles (EVs) because crude oil imports are a factor contributing to the country’s fiscal deficit. To encourage EV adoption, India offers purchase subsidies and production-linked incentives aimed at promoting the localization of electric components. Crucially, the battery cells, a core component of EVs, are almost entirely imported from China. This dependence means that the spread of EVs widens the trade deficit, making the localization of battery cells an urgent priority.