Indian EV cell makers seek to bridge price gap with China

Lithium-ion cell makers intensifying talks with govt to cut costs, build a local supplier base

- Ayaan Kartik & Manas Pimpalkhare

Indian cell makers are in talks with the government to help them bridge the price gap with Chinese counterparts.

India’s makers of lithium-ion cells, which are used in electric vehicles (EVs) and battery storage systems, are seeking to narrow the price gap with Chinese rivals through local supplier development and taking advantage of key tax exemptions for companies in China expiring, potentially pushing up imported cell prices by about 9% over the next few months.

Industry executives said cell and component makers have, in recent weeks, stepped up discussions with the Union government seeking incentives for raw materials used in lithium-ion cell manufacturing to improve domestic cost competitiveness and build a local supplier base.

Development of local suppliers, government incentives for cell components and China’s increasing export taxes can all help narrow the anticipated 20-30% price gap with Chinese lithium batteries, experts and industry executives suggest.