Why in news
- Centre proposed a Rs 13,000-crore incentive scheme focused specifically on upstream battery cell component manufacturing.
- The measure aims to bridge the manufacturing cost gap and reduce import reliance on Chinese battery components.
What is the proposed component incentive?
- Rs 13,000-crore scheme targeting raw materials and components for Advanced Chemistry Cell (ACC) batteries.
- Focuses on upstream elements like cathodes, anodes, separators, and electrolytes rather than just final pack assembly.
Why it matters
- Current battery pack assembly in India heavily relies on imported cells and precursor components, primarily from China.
- Establishes domestic supply chain resilience for Electric Vehicles (EVs) and grid-scale energy storage systems.
Key terms
Advanced Chemistry Cell (ACC)
New generation battery storage technologies that store electric energy as chemical energy and convert it back when required.
Upstream Components
Raw materials and primary processed inputs like active cathode and anode materials used to make battery cells.
Prelims facts
- Cathodes, anodes, separators, and electrolytes constitute key cell components targeted under domestic manufacturing incentive proposals.
Mains discussion
- Addressing supply chain vulnerabilities in critical mineral processing and green transition manufacturing.
Source: Hindu Business Line News
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UPSC has asked this before
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