Daily Management Review

Reliance And Ola Electric Have Secured Incentives In $2.4 Billion Battery Plan Of India


After winning a contest, India’s Reliance Industries and Softbank Group-backed Ola Electric will receive incentives under India's $2.4 billion scheme to encourage domestic battery cell manufacture, according to a report published by Reuters based on information from sources.
Hyundai Global Motors Company and Indian jeweller Rajesh Exports are among the winning bidders, according to the individuals, who spoke on the condition of anonymity.
Last year, the Indian government finalised a scheme to encourage companies to manufacture battery cells in India as part of its efforts to build a domestic supply chain for clean transportation and renewable energy storage in order to satisfy the country's decarbonization targets.
According to the sources, Ola Electric and Hyundai will receive incentives for 20 gigawatt hours (Gwh) of capacity, while Reliance and Rajesh Exports will receive incentives for 5 Gwh. They did not provide a monetary value.
There were no comments on the issue available from Reliance, Rajesh Exports and Hyundai Global.
Ola declined to comment on whether it had won the contract, but referred Reuters to a statement it made on Wednesday about its plans to manufacture batteries locally. Ola Electric announced yesterday that it has added Prabhakar Patil, the former CEO of LG Chem Power, to its board of directors and wants to build a storage capacity of 50 Gwh.
A few Asian businesses, such as CATL, LG Energy Solutions, and Panasonic, dominate battery cell manufacture, and they also export to Indian companies. Domestic production is a priority for the government, which expects to build a total of 50 Gwh of battery storage capacity over the next five years.
A total of ten firms submitted proposals for the production of 130 Gwh of storage capacity.
Mahindra & Mahindra, Amara Raja and Exide Industries, and Larsen & Toubro, an engineering conglomerate, are among them.
Some businesses have already begun to implement their plans.
For around $200 million, Reliance bought two battery companies: UK-based Faradion, which develops sodium-ion batteries, and Lithium Werks, which makes lithium iron phosphate batteries.
Exide has formed a long-term technical partnership with China's SVOLT Energy to build a lithium-ion battery cell manufacturing facility.