MHI planning new scheme for indigenous production of battery components

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Subscribe to enjoy similar stories. New Delhi: The ministry of heavy industries (MHI) is preparing a concept note to garner support for a scheme to promote domestic manufacturing of battery components, MHI joint secretary Vijay Mittal said. “The ministry is currently developing a concept note aimed at bringing policymakers together to agree on specific schemes that will support the manufacturing of components.

This support will involve financial systems, policy regulations, and ease of doing business," he told the India Battery Manufacturing and Supply Chain Summit 2025 on Wednesday, The scheme will propose the stringent localization criterion as previous incentive schemes such as the production-linked incentives for automobiles and auto components (PLI-Auto), he added. If the domestic value addition (DVA) is not above 50%, then the product will not be an indigenous product, Mittal said. “Any manufacturer producing goods in this country—be it ACC batteries or any other product—that possesses over 50% DVA is recognized as a Class 1 supplier and a genuine contributor to our requirements," he said.

DVA is a localization yardstick used to measure the share of domestic components in the finished product. Mint reported on 2 December that the government had started stakeholder consultations for an incentive-based scheme to promote the indigenous manufacturing of battery parts. Key battery components include anodes, cathodes, electrolytes, as well as copper and aluminium foils.