Incentives for local manufacture of batteries- Indian policy Vs European poicy

 Production subsidy- India

The government of India has earmarked Rs 18,100 crore as approved financial outlay for implementing the PLI scheme in the Advance Chemistry Cell (ACC) Battery vertical. NITI Aayog and Department of Heavy Industries has been made the implementing agency for the same. Subject to Clause 11.5, 11.6, 11.7 and 11.8, , the Beneficiary Firm shall be entitled to avail the Subsidy in accordance with this Agreement for a period of 10 (ten) years from the Appointed Date.Notwithstanding anything contained herein, the cumulative Subsidy payable by the Government to the Beneficiary Firm during the Term of this Agreement, shall not exceed INR 1,420 crore (Rupees one thousand and four hundred and twenty crores) per GWh.

R&D subsidy-Europe

Plan to develop local capability was more elaborate and layered in Europe.  The European Battery Alliance (EBA) was launched in 2017 by the European Commission, EU countries, industry, and the scientific community. 

This was followed by 1st round of 3.2 billion funding in 2019.The European Commission has approved under EU State aid rules an Important Project of Common European interest (“IPCEI”) jointly notified by Belgium, Finland, France, Germany, Italy, Poland and Sweden to support research and innovation in the common European priority area of batteries.

2nd round of 2.9 billion public support was announce in 2021. The project, called “European Battery Innovation” was jointly prepared and notified by Austria, Belgium, Croatia, Finland, France, Germany, Greece, Italy, Poland, Slovakia, Spain and Sweden. The twelve Member States will provide up to €2.9 billion in funding in the coming years. The public funding is expected to unlock an additional €9 billion in private investments, i.e. more than three times the public support. The project will cover the entire battery value chain from extraction of raw materials, design and manufacturing of battery cells and packs, and finally the recycling and disposal in a circular economy, with a strong focus on sustainability.