Economic Survey urges India to build a self-reliant EV supply chain

India to build a self-reliant EV supply chain

News: India’s EV supply chain remains heavily dependent on China due to a lack of local battery cell production.

The Economic Survey 2024-25 stresses the need for self-reliance, highlighting initiatives like the PLI scheme for advanced chemistry cells and Khanji Bidesh India Ltd. to mitigate risks.

Despite EV sales rising—100,000 electric cars and over a million two-wheelers sold last year—India imports nearly 100% of its Li-ion batteries. EVs require six times more minerals than conventional cars, with China dominating global processing of nickel, cobalt, and lithium. With lithium-ion battery demand projected to grow at 23% CAGR by 2030, India must prioritize domestic manufacturing to secure its EV future.