EVOLVING ELECTRIC MOBILITY

ECOSYSTEM IN INDIA

th
29 June, 2024
Contents
Foreword ........................................................................................................... Error! Bookmark not defined.

1. Current EV Landscape ................................................................................................................................... 3

Vehicle Purchase Support Policies: ................................................................................................. 6

EV Policy Status in India ...................................................................................................................... 7

1.2.1 FAME-II: Effects and Needs....................................................................................................... 8

1.2.2 Performance Linked Incentive (PLI) Scheme: ACC and AAT ...................................... 10

1.2.3 Mines and Minerals Act, 2023 .............................................................................................. 10

2. EV Supply Chain in India ........................................................................................................................... 11

EV batteries ........................................................................................................................................... 12

2.1.1 Demand for LiB Batteries & Raw Materials...................................................................... 12

2.1.2 Battery Supply Chain and Key Players ............................................................................... 14

2.1.3 Cell Cost Breakdown and Localization Potential ........................................................... 15

2.1.4 Cell Components Key Activities in India ........................................................................... 16

2.1.5 Battery Recycling ....................................................................................................................... 19

Prospect of EV supply chain in India ........................................................................................... 19

3. Charging Infrastructure Evolution .................................................. Error! Bookmark not defined.

Growth and Geographical Coverage .................................... Error! Bookmark not defined.

Evolving business models and charging ecosystem ...... Error! Bookmark not defined.

Types of Chargers & Interoperability ................................... Error! Bookmark not defined.

3.3.1 Protocols for Operability.................................................. Error! Bookmark not defined.

4. EV Financing............................................................................................ Error! Bookmark not defined.

Business Models in EV Financing ........................................... Error! Bookmark not defined.

Key challenges in EV financing in India ............................... Error! Bookmark not defined.

Government policies and potential solutions ................... Error! Bookmark not defined.

4.3.1 Risk Absorption (Green Bonds) ..................................... Error! Bookmark not defined.

4.3.2 Technology Interventions ................................................ Error! Bookmark not defined.

4.3.3 Second life price discovery ............................................. Error! Bookmark not defined.
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 EV-specific finance products ................................................... Error! Bookmark not defined.

5. Way Forward ........................................................................................... Error! Bookmark not defined.

Authors...................................................................................................................................................................... 20

General Disclosures .............................................................................................................................................. 20

References................................................................................................................................................................ 22

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 Foreward / Preface

 Reproduction or dissemination, directly or indirectly, of research data and reports of NRI's

analysis in any form is prohibited except with the written permission of NRI

3
1. Current EV Landscape

Electric mobility in India is no longer a fringe issue and become central to the automotive
industry

With a push from the

government to improve energy
security, reduce import
dependency, and meet carbon
emission norms, electric
mobility has been a key focus
area. Today, across all vehicle
segments ranging from light
forms like 2-wheelers, and 3-
wheelers to passenger cars to
trailers & tippers, there are
offerings in the market by
different OEMs with penetration accelerating towards the “EV tipping point” where EV sales
start to cross a threshold to self-sustain rather than being driven by government incentives
alone. Amongst 2-wheelers in calendar year (CY) 2023, penetration crossed 5% level

with sales reaching

0.86 million units
(excluding Telangana
sales) at a YoY increase
of 36.2%. Even though
sales are largely being
driven by mopeds and
are yet to witness EV
motorbikes, 2-
wheelers as an overall
segment is on the cusp of reaching a tipping point. Coupled with increased penetration is the
rising consolidation of 2-wheeler markets with the largest 4 players: Ola, TVS, Ather, and Bajaj
occupying more than 70% of the market share in 2023 with Ola alone capturing 31% of the
market. In 2022, the top 4 players occupied which included Hero Electric and Okinawa

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occupied 66% leaving 1/3rd of the market to other players. With issues around meeting targets,
the market landscape has observed drastic changes with Ola and legacy OEMs like TVS and
Bajaj gaining market share in a single year.

3-wheelers continue to be a fragmented and rapidly growing market driven by e-rickshaw

growth. However, 2023 also observed rapid growth of L5 autos with both Piaggio and
Mahindra Last Mile Mobility rapidly increasing their sales, leading to Mahindra becoming the
leading e-3W player with both r-rickshaw & L5 autos 3-wheelers in its product portfolio.

Amongst 4-wheeler
passenger vehicles,
Tata Motors continues
to be the dominant
player with greater
than 70% market
share. E-4 wheeler
segment has
witnessed an
exponential rise with a
115% Y-o-Y increase in 2023 reaching greater than 82K vehicles in India as per the Vahan
database which excludes key EV states like Telangana which pegs EV sales at even higher
numbers. Other 4-wheeler players like Mahindra, and BYD are strongly catching up in India
and have taken a toll on Tata's market share which was greater than 80% in 2022.

Electric buses are a segment that even though observed growth in absolute numbers,
decreased in terms of EV penetration. Tata Motors gained market share because of the delivery
of buses under tenders in 2023, meanwhile, players like PMI, and Olectra with strong Chinese
ties for technology had a dominant share in 2022. Electric buses are largely being ordered for
State Transport Units (STUs) which depending on state form 2-16% of total buses, thus even
with complete electrification of the state fleet, electrification will not rise in buses without the
participation of private bus fleets. Delays in delivery of buses under CESL tenders for various
states and surging diesel bus consumption at 67% Y-o-Y growth amongst private players are
driving the penetration of e-buses down. The lack of adoption of e-buses amongst private
players calls for policy impetus curbing diesel bus operation and better demand-side
incentives for bulk-transport mediums like buses which would be crucial for overall
sustainability and urban transportation.

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 Vehicle Purchase Support Policies:
Globally the purchase of EV Vehicles is focussed around i) Purchase Incentives/Vehicle Credits
for Electric Vehicles and ii) Tighter emission norms coupled with EV sales targets/ban on ICE
vehicles forcing the phasing out of ICE, especially diesel.

In advanced markets where EV penetration is in double digits in LDVs, Purchase incentives are
being strategically phased out.

Apart from incentives for BEVs, there is a need to broaden the horizon as far as the
electrification technologies for which incentives are being provided are concerned. BEVs are
only one part of the electrification family, which also includes SHEVs (strong hybrid electric
vehicles) and PHEVs (plug-in hybrid electric vehicles. In the Indian context especially, SHEVs
can play a key role in the transition towards mobility electrification.

SHEVs provide multiple advantages. They have higher fuel efficiencies (up to 45%) and much
lower emissions as compared to their ICE counterparts. Another key aspect is that SHEVs are
self-charging vehicles (no range anxiety) and hence provide economies of scale for
manufacturing EV components such as batteries, motors & power electronics, thus catalyzing
BEV adoption as well.

It is because of these reasons that in multiple countries across the world, SHEVs are taxed
lower and provided incentives to ensure their attractiveness as compared to equivalent ICE
vehicles. In contrast, India charges a higher absolute tax on SHEV than the ICE version.

* For easy reference figures are converted to a common base in INR

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To ensure the faster development of the electrification ecosystem in India, the rationalization
of tax anomaly on SHEVs is critical, which will also help catalyze the vision of Electric mobility
in the country.

EV Policy Status in India

The government of India has devised a multi-faceted policy targeting green mobility including
electric mobility, development, and mixing of bio-fuels and hydrogen into long-haul
transportation. At the central level, there is a set of fiscal and non-fiscal incentives supporting
EVs and a 3 pillar strategy to promote the entire EV ecosystem. These include – Faster Adoption
& Manufacturing of Hybrid& Electric (FAME Phase - II) as a demand-side incentive, Import
Restrictions and localization targets under the Phased Manufacturing Program (PMP) a supply-
side policy curbing import dependency, and third, supply-side fiscal Incentives production
linked incentives to support local manufacturers to develop the capacity to make and scale
the EV components and battery production. PLI for Advanced Automobile and Auto
Component Industry (Advanced Automotive Technology – AAT) is for boosting EV component
manufacturers and OEMs based on sales of BEVs and Hybrids. At the same time, PLI for
Advanced Chemistry Cells (ACC) aims to facilitate the development of giga-factories for a
battery manufacturing capacity of 50 GWh.

While demand-side incentives have received significant allocation and utilization over the last
2-3 years, supply-side incentives and restrictions are slowly catching up in showing effects.
Additionally, policies like Battery Waste Management Rules 2022 and amendments to the

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Mines and Minerals Act in 2023 are key policies that are targeting the recycling and upstream
processing of critical minerals like lithium which are key for EV batteries. Apart from the centre,
27 of 36 states and union territories have notified EV policy which includes both supply and
demand side incentives

1.2.1 FAME-II: Effects and Needs

The FAME scheme in India was devised in 2015 with the first phase of the scheme catering to
0.278 million electric vehicles via demand incentives. Phase II of the scheme was initiated in
2019

and was subsequently expected till the end of

the financial year 2024. Under FAME-II a total of
INR 10,000 Crore was outlawed for demand-side
incentives on vehicles and the development of
charging infrastructure. Subsequently, the total
outlay budget was revised to INR 11,500 Crore
to meet the increased demand in the 2-wheeler
segment.

The 2-wheeler EV industry has been one of the

biggest beneficiaries of FAME schemes with an
initial outlay of INR 2,000 Cr being increased to
INR 3,500 Cr and claims exceeding INR 4,180+
Cr by the end of Jan 2024. Claims for e-3W had been lagging without sufficient L5 models
and are quickly catching up with major 3-wheeler OEMs expanding their electric 3-wheeler L5
category portfolio.

The effect of the importance of FAME in driving 2-wheelers can also be clearly understood
from the sales rise and decrease followed by effective increase and decrease in incentive per
kWh and cap on prices for 2-wheelers. With the subsidy amount increase in mid-2021 to
INR15,000/kWh, sales of e-2W shot up for 2 years straight and observed the biggest drop of
~56% in July-23 when the subsidy was slashed back to INR 10,000 per kWh with a reduced
cap.

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However, despite a strong initial drop, the sales of 2-wheelers have slowly recovered and
continue to rise indicating a stronger demand
response. Yet a complete removal of subsidy for the
2-wheeler under future FAME phases may deter
growth and a more phased–out smaller incentive
per vehicle for 2-wheeler would be crucial for
sustained transition in the 2-wheeler segment.
Other vehicle categories like light commercial
vehicles, medium-duty trucks, and tractors are
segments that need to be introduced under the
regime in the future. These segments are
conventionally diesel guzzlers and OEMs are now
able to successfully come up with EV products in
their portfolio for consumers to select. With the slashing of budget allocated to FAME to INR
2671 Cr in FY24-25, it would be crucial to have a balanced outlay for different vehicle segments
for sustaining growth beyond low-hanging targets like e-2W and drive penetration in the next
set of vehicle segments like LCVs

Despite the claimed/sanctioned amount between eight to nine thousand crores, actual
disbursal stands at around six thousand crores with the largest unutilized chunk remaining out
of INR 5172 Cr allocated for FY23-24. Multiple factors may have led to this gap in disbursal
with few select OEMs finding loopholes around meeting localization and billing targets and

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subsequent increased scrutiny and delay from the government end. An enhanced mechanism
for more timely disbursal of claims would be crucial for the likely next phase of the scheme.

1.2.2 Performance Linked Incentive (PLI) Scheme: ACC and AAT

Performance-linked incentives for the automotive industry have been centered around the i)
ACC: Advanced Cell Chemistry with INR 18,100 crore outlay over five years (2023-2028) to
establish 50 GWh local battery production, encouraging domestic manufacturing of ACC
batteries and components for the EV industry and ii) AAT: advanced automotive technology
(AAT) targeting localized manufacturing of auto and auto components. With an INR 25,938
crore outlay over 2022-2027, eligible OEM Champions under PLI AAT receive incentives
ranging from 13-16% of determined sales value for BEV & FCEV vehicles. For Component
Champion, 8-11% of determined sales along with an additional 5% for BEV & FCEV vehicle
components.

Under PLI ACC, in the initial round of allotment Rajesh Exports, Ola Electric, and Reliance New
Energy emerged as winners with a combined capacity of 30 GWh. Govt has now announced a
bid for a 10 GWh tranche expecting previous bidders who were not allocated to come forward.

In the interim budget for 2024, the allocation for PLI ATT has been increased to INR 3,500 Cr,
and PLI ACC has been increased to INR 250 Cr indicating a strong commitment from the
government end to boost the supply side ecosystem of electric mobility.

1.2.3 Mines and Minerals Act, 2023

Another important piece of legislation affecting the EV ecosystem and supply chain is the
Mines and Minerals amendments in 2023. With the amendment of the Mines and Minerals
Act, lithium was removed from atomic minerals, and a composite license (single license for
exploration and earning revenue) is being put for auction for lithium blocks in J&K. With PLI
ACC government targeted the downstream cell & battery manufacturing process and
amendments to minerals act targets opening up avenues in upstream mining and processing
for material for cell manufacturing.

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2. EV Supply Chain in India

Indian EV industry has boomed post-pandemic with e-2W and e-3W sales skyrocketing.
Passenger cars and EV buses have also observed significant growth in numbers. On the policy
front, the demand-side incentives are strongly coupled with supply-side incentives and import
restrictions on components from China and completely built vehicle units which favors
localization. The impetus behind this localization encompasses multiple objectives ranging
from eliminating fragility from the supply chain, and indigenization of the growing sector to
fuel national growth and reduce costs. From a consumer demand side, there is an increasing
call for a wider product range at competitive prices. Thirdly EVs are no longer a game of start-
up. Both conventional OEMs and tier-1 auto suppliers have placed strong EV bets. This pertains
to increased product portfolio and competitiveness in the market which calls for localized
manufacturing as a key to survive in the market in India.

Largely it is the batteries, motors + invertors DC-DC convertors, and OBCs that encompass the
costliest components in EV vehicles covering 70% of the cost of a 30kW battery size EV in the
Indian market. Thus, the ecosystem around these components is central to understanding to
EV supply chain in India

As of 2023, the Battery pack which remains to be the most critical component is still largely
import-driven due to the import of cells and localisation limited to assembly-level operations
including welding of bus bars, enclosures, etc. Traction motors coupled with invertors and
transmission going by names like e-axles are also largely imported with a knock-down version

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of the component being imported for the large form factor of vehicles. A more detailed
analysis of these components however leads to an understanding that India has reached
sufficient volumes and capacity is being lined up for attaining a much higher percentage of
localisation in the next 2-3 years.

EV batteries
2.1.1 Demand for LiB Batteries & Raw Materials

EV batteries specifically Lithium-ion batteries play a pivotal role not just in the EV segment,
but also address the stationary grid applications related to renewable energy. Considering
India's commitment to achieving 50% of its cumulative power generation from non-fossil-
based sources, building a reliable local supply chain of batteries. This commitment has
propelled the growth of solar and wind energy, and battery-based energy systems hold great
potential for grid management and creating renewable energy-storage solutions. This,
combined with the burgeoning electric mobility sector, is a key driver of the surging demand
for batteries in India. According to estimates by Niti Aayog, electric vehicles alone are poised
to account for approximately 64% of the cumulative new battery demand in India between
2022 and 2030, with grid storage applications following closely behind considering that grid
storage will also utilise repurposed batteries to meet the requirement.

Demand for new batteries alone is expected to generate an annual demand of 16 kilotons for
Lithium by 2030, an even higher quantity when lithium carbonate or lithium hydroxide is
considered.

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As per the IEA estimate, total global lithium demand is expected to reach ~319 kT implying
that India would constitute a conservative number of 5% of global demand which presents an
opportunity for both domestic and global players to have a presence in the battery
manufacturing ecosystem in India.

Raw materials are the lifeblood of lithium-ion battery (LiB) localization. Securing a stable and
domestic supply of essential elements such as lithium, cobalt, nickel, graphite, and other critical
components is paramount to reducing dependence on imports and achieving self-sufficiency
in LiB production. Developing a robust supply chain for these raw materials is not only
economically strategic but also vital for the long-term sustainability and competitiveness of
the electric vehicle industry in a rapidly evolving global landscape.

2.1.1.1 Cathode Materials Scenario

Demand for critical elements is expected to exhibit moderate growth by 2030, with LFP
chemistry taking center stage and advanced NMC variants gaining traction. Nickel and cobalt
demand is projected to increase, but at a slower pace, due to the shift towards advanced NMC

(811) formulations that utilize less nickel. Iron and phosphorus will emerge as pivotal raw
materials, with an estimated demand of 74 kilotons and 42 kilotons, respectively. These
insights underscore India's strategic trajectory in LiB battery manufacturing, with a focus on
optimizing raw material usage, fostering sustainable chemistry choices, and aligning with the
nation's commitment to eco-friendly mobility solutions.

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2.1.1.2 Anode Materials Demand

Graphite, the cornerstone of anodes for LiB

cells, is expected to witness a steady rise in
demand, but silicon-doped graphite is
poised to be a game-changer, reducing the
demand per kWh of energy produced.

Anodes in LiB cells are primarily graphite-

based, but silicon-doped graphite is
gaining traction, projected to increase its
share from the current 30%. This transition
is significant as Si-Gr anodes consume less
graphite while offering improved efficiency.

As new battery technologies like solid-state batteries emerge, they are set to increase the
lithium content in anodes. Conversely, sodium-based chemistries will usher in reductions in
lithium content.

2.1.2 Battery Supply Chain and Key Players

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India's LiB manufacturing industry is booming, with several key players investing in new
facilities to support the growing electric vehicle (EV) market. Ola Electric, Reliance, and Rajesh
Export have been selected under the PLI scheme to receive incentives for cell manufacturing,
and are expected to start production by 2024. Traditional battery manufacturers such as Tata
AutoComp Systems, Exide Industries, and Amara Raja Batteries are also expanding their LiB
presence, while non-traditional players like Mahindra & Mahindra and Larsen & Toubro are
entering the market. Additionally, startups and players from allied sectors serving telecom, and
consumer electronics with a presence in pack manufacturing are considering investments in
cell manufacturing. Among startups for example Godi Energy has announced to expand
production of NMC in 2 phases with first phase capacity 2.5 GWh. Log9 another startup
pioneering LTO chemistry is also enhancing production upto 1 GWh

These companies are also partnering with

research institutes to develop new LiB
technologies. For example, Exide Industries has
signed an MoU with IIT Chennai, and Amara
Raja Batteries has partnered with the Andhra
Pradesh Economic Development Board.

The development of domestic LiB

manufacturing is expected to reduce battery
costs, create jobs, and boost EV adoption in
India. It will also reduce India's reliance on
imported batteries and promote self-reliance in
the EV sector.

2.1.3 Cell Cost Breakdown and Localization Potential

A cost breakdown of these batteries into cell and pack components is done above. Remarkably,
the pack components and pack assembly together constitute approximately 30% of the
battery component's overall value.

The cell can be further disassembled into a Cathode, Anode, Separator, and Electrolytes.
Among these, the Cell Cathode emerges as the primary cost contributor, commanding a
significant 21% in LFP batteries and a substantial 42% in NMC batteries.

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Yet, the downstream supply chain for these critical components, encompassing cathode,
anode, separator, and electrolyte, finds itself in a fledgling state in India. This fragility is
primarily attributed to the scarcity of raw materials, a limited number of manufacturers, and
the inherent uncertainty regarding demand security.

Nevertheless, despite the formidable challenges concerning the procurement of raw materials
for cathode and anode production, India remains poised to unlock a substantial portion of the
battery's value chain. The potential includes harnessing more than 90% of the packing
component's value, achieving between 70% to 90% of the LFP cell's value, and realizing up to
43% of the NMC cell's value. To embark on this journey, India must prioritize the development
of domestic cell manufacturing capacity.

2.1.4 Cell Components Key Activities in India

There is a critical need to localize the cell supply chain. The cell materials constitute around
40% of its cost, and India has minimal availability of cell raw materials. If India targets to achieve
60% of the value addition (as mandated by the PLI), it needs to localise the manufacturing of
anode, cathode, electrolyte, and separator.

2.1.4.1 Anode
The landscape of anode manufacturing in India is evolving with a dual focus on securing global
demand and preparing for future domestic needs. Anode manufacturers in India are actively
seeking approval from global battery manufacturers, as this collaboration ensures a steady
demand for domestically produced anode materials. Export-oriented strategies are being
adopted, as it is anticipated that domestic demand from local cell manufacturing companies
will take more than three years to materialize.

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Indian-made anodes are poised to be competitively priced, making them attractive to battery
manufacturers seeking supply chain diversification, aligning with the "China+1" approach. Key
players like Epsilon Carbon, HEG, and Himadri are investing substantially to expand their
production capacities, with targets ranging from 20,000 to 100,000 MT by 2030. These efforts
underscore the growing significance of anode manufacturing in India's thriving electric vehicle
and battery industries.

2.1.4.2 Cathode
Cathode manufacturing in India is poised for growth, with companies preparing to enter the
sector as demand matures and long-term supply contracts materialize. However, several
challenges need to be addressed. The lack of clarity on battery chemistry poses a significant
hurdle, as cathode production is closely tied to cell chemistry, making it challenging for
manufacturers to estimate demand accurately. Additionally, the absence of government
incentives or schemes specifically targeting cathode manufacturing, coupled with the
substantial investment required, presents a barrier to entry. Moreover, the limited technical
expertise within Indian companies necessitates technology transfer agreements with overseas
players to bridge the knowledge gap, while securing a stable supply of raw materials remains
a pressing challenge.

In this evolving landscape, key companies are making strides. Altmin, in collaboration with
ARCI, has set up a pilot plant for cathode materials in Hyderabad, Telangana. Altmin has also
partnered with the Telangana government to initiate C-LFP active battery material production.
Altmin has also raised investments in tune for setting up cathode active material (CAM) plant
catering to 3 GWh capacity.

BASF India, with its extensive chemical manufacturing experience, is keen on expanding its
presence in India, tapping into its global technical expertise in cathode active materials (CAM)
manufacturing through collaborations like Umicore.

2.1.4.3 Electrolyte
Electrolyte manufacturing in India for Lithium-Ion Battery (LiB) cells is currently in its nascent
stages, but it has been attracting increasing interest from both domestic and international
companies. One notable aspect in favor of electrolyte production in India is the local
availability of salt, a key component in electrolyte formulation. However, despite the
accessibility of salt, procuring it from local sources may present challenges due to stiff
competition within the domestic market.

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On the flip side, the manufacturing of battery-grade solvents such as Ethylene Carbonate (EC),
Ethyl Methyl Carbonate (EMC), and Dimethyl Carbonate (DMC) remains a hurdle, as these
solvents are not produced locally in India and must be imported. Currently, only commercial-
grade solvents are readily available within the country. Similarly, the production of additives,
another crucial component of electrolytes, faces the same challenge of limited local
manufacturing capabilities, necessitating their importation. As the LiB industry in India
continues to evolve, addressing these challenges and establishing a robust supply chain for
electrolyte production will be pivotal in supporting the growth of the electric vehicle and
energy storage sectors.

2.1.4.4 Separator
The separator manufacturing landscape in India has attracted investments from global
manufacturers, but there are several key considerations at play. To ensure demand security,
long-term contracts with established non-startup companies are crucial. This is because the
domestic market is still relatively underdeveloped. Raw material supply remains another critical
factor, and companies are actively scrutinizing potential suppliers to establish a reliable local
supply chain.

Separator manufacturing is agnostic of cell chemistry, but it varies depending on the specific
lithium-ion battery (LiB) application. For instance, separators used in Energy Storage Systems
(ESS) applications do not require coating. Another key consideration lies in the choice between
wet and dry process separators. Wet process separators cater to the surging demand for
Electric Vehicle (EV) batteries, while dry process separators are well-suited for the growing
demand in ESS, driven by increasing Renewable Energy (RE) penetration.

Some key players in the emerging Indian separator manufacturing landscape include Neogen,
Daramic, and ENTEK. Neogen is actively planning to establish a manufacturing capacity
ranging from 1200 to 2400 tons per year. Daramic, an Asahi Kasei Group company, currently
manufactures Polyethylene (PE) separators in India for Lead Acid Batteries and is prepared to
transition to Li-ion battery separators in the future. ENTEK, a global player, is exploring the
establishment of a manufacturing plant for Absorbent Glass Mat (AGM) battery separators in
India.

The rising prominence of separator manufacturing in India's burgeoning energy storage and
electric vehicle industries is underscored by these investments from leading players.

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2.1.5 Battery Recycling
Battery recycling plays a pivotal role in the
battery supply chain, ensuring circularity and the
recovery of lithium metals. Given the absence of
a robust upstream mining and material
processing infrastructure and considering the
extended timeline of 5-7 years for establishing
upstream refinement, the critical need to scale
up Lithium-ion Battery (LiB) recycling becomes
evident to meet the demands of mid and
downstream production. Both black production
and mineral extraction through
hydrometallurgy/pyro-metallurgy contribute to
India's capacity of 35,000 tons per annum (TPA) across various players involved in processing
LiB plants. However, approximately 10,000 TPA is limited to mechanical processing, involving
pre-treatment and battery shredding to generate black mass. To align with the
recycling/repurposing potential projected for 2030, the current capacity must increase by
approximately nine times. In comparison to global players, China boasts a total capacity of
around 230,000 TPA in 2022, contributing to the global capacity of approximately 0.4-0.45
million TPA in the same year. Consequently, India represents less than 5% of the global total
in this rapidly evolving segment. Presently, key players in India's recycling ecosystem comprise
a diverse mix of start-ups, e-waste recyclers expanding horizontally, and companies with a
focus on battery materials or critical battery minerals processing. Notable entities include
Lohum, Exigo, Ziptrax, Attero, Batx, Tata Chemicals, LICO, and SungEel Hitech, among others.

Prospect of EV supply chain in India

The prospective development of India's Electric Vehicle (EV) supply chain is filled with both
promise and challenges, particularly in the localization of critical components. In the battery
sector, achieving localization for the anode seems feasible due to the availability of raw
materials within the country. However, complete localization for the cathode, separator, and
electrolyte faces constraints due to limited raw materials and reliance on imports. Despite
these challenges, there is an opportunity for domestic manufacturing of essential components
like the Battery Management System (BMS) and Thermal Pads, which could strengthen the
overall EV supply chain domestically.

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Authors

Nomura Research Institute is a Global Think Tank and the Largest Consulting Firm in Japan.
Established in 1965, it now has 24 Global Offices in 13 Countries with more than 10,000
employees worldwide.

The Automotive Industry is the core industry vertical within the Consulting Division. The GPG
(Global Practice Group) for Automotive has more than 100 consultants engaged in the
Automotive space, helping clients in developing winning strategies and their implementation
cutting across the automotive value chain.

CASE (Connected Autonomous Shared Electric) is one of the key expertise areas where NRI
delivers projects for clients and acts as a think tank helping industry associations and
government bodies in developing policies.

NRI Consulting & Solutions India was established in 2011 and is based out of Gurugram with
over 50 consultants dedicated to Automotive.

https://india.nri.com/industries/automotive/

General Disclosures
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Research Institute, this report is based on current public information that we consider
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as such

 The information, opinions, estimates, and forecasts contained herein are as of the date
hereof and are subject to change without prior notification. We seek to update our
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certain industry reports published periodically, the large majority of reports are published
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 Reproduction or dissemination, directly or indirectly, of research data and reports of NRI's

analysis in any form is prohibited except with the written permission of NRI

20
  The reports include projections, forecasts, and other predictive statements that represent
NRI's assumptions and expectations in the light of currently available information. These
projections and forecasts are based on industry trends, news articles, estimates shared by
Global agencies, an estimation model including probabilities, regression, correlations, etc.,
circumstances, and factors that involve risks, variables, and uncertainties. The actual
performance of the parameters represented in the report may vary from those projected

 The industry opinions presented are based on a comprehensive survey conducted by

Nomura Research Institute India, gathering insights from veteran industry experts
representing various segments of the electric vehicle value chain, including OEMs,
Suppliers, Academia, R&D Institutes, and Think Tanks. The responses have been
categorized to provide a coherent representation of the industry's perspectives.

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 References
i. Economic survey 2022-23 ,2022
ii. IBEF, Auto Components Industry Report, Feb 2023
iii. Financial Express, MG Motor India becomes official mobility partner for G20 Startup20, 4 July
2023
iv. Live mint, India to advance its EV infra hub ambition at G20 meets, January 2023
v. IEA Global EV Outlook 2021, “Policies to promote electric vehicle deployment”, April
2021
vi. Niti Aayog E-Amrit Website, “National Level Policies”
vii. Niti Aayog Report, Draft Battery Swapping Policy, April 2022
viii. Niti Aayog E-Amrit Website, “State Level Policies”
ix. Ministry of Road Transport and Highways, “Annual Fuel Consumption Compliance Report”,
November 2022
x. IEA Global EV Outlook 2023
xi. PIB, “Government notifies Battery Waste Management Rules”, 2022
xii. Niti Aayog, “Battery reuse and recycling market in India”
xiii. Niti Aayog, “Need for Advanced Chemistry Cell Energy Storage in India”, 2022
xiv. Ministry of Mines, “Critical Minerals for India”, 2023
xv. Bureau of Energy Efficiency, https://evyatra.beeindia.gov.in/public-charging-stations/
xvi. Press Information Bureau (PIB), “Centre sanctions Rs. 800 crores under FAME Scheme Phase II
for 7432 public fast charging stations”
xvii. Niti Aayog, “Status quo analysis of various segments of electric mobility and low carbon
passenger road transport in India”
xviii. EV Reporter, “An overview of vehicle finance in India”
xix. F&S, “Expanded Financing Access will be Crucial to Ramped up Adoption of Electric Two-
wheelers (e2Ws) in India”
xx. NITI Aayog, “Driving affordable financing for electric vehicles in India”
xxi. NITI Aayog, “Mobilising finance for EVs in India”
xxii. CEEW, “Financing India’s energy transition”
xxiii. NITI Aayog, “ACC Battery reuse and recycling market in India”
xxiv. Vahan 4 Dashboard
xxv. FAME II Dashboard, MHI
xxvi. NITI Aayog “Advanced Chemistry Cell Battery Reuse and Recycling Market in India”
xxvii. PIB, “Subsidy amounting to Rs. 5790 crores given to electric vehicle manufacturers on sale of
13,41,459 number of electric vehicles under phase-II of FAME India Scheme”
xxviii. IEA, Global EV Data Explorer

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