India's cathode active material manufacturing capabilities are set to receive a boost with Vidyuta Materials securing approval under the Electronics Components Manufacturing Scheme (ECMS) for a Rs 500 crore project.
The development marks an important step towards strengthening the country's domestic lithium-ion battery supply chain, particularly in the production of critical battery materials.
Vidyuta's project comes as India seeks to expand its battery manufacturing ecosystem and reduce dependence on imported components.
With cathode materials playing a significant role in battery performance and production costs, domestic manufacturing could create opportunities for material suppliers, battery manufacturers and the wider electric mobility industry.
Vidyuta Materials, a subsidiary of LOHUM, has received ECMS approval for its proposed cathode material manufacturing investment.
The project will focus on lithium cobalt oxide (LCO) cathode active materials, an important component used in lithium-ion batteries.
The manufacturing facility is expected to develop capabilities in:
The ECMS approval also marks the scheme's first approval for cathode active material manufacturing.
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According to NITI Aayog's "Mine to Market" report, the country could require approximately 193,000 tons of cathode active material annually by 2030 to support 100 GWh of lithium-ion battery production.
The report also identifies the following requirements:
The Ministry of Electronics and Information Technology (MeitY) approved 12 additional projects under ECMS on November 6, involving projected investments of Rs 7,503 crore.
Other relevant approvals include:
MeitY Secretary S Krishnan highlighted the significance of the approvals, noting that cathode active material would be manufactured in India for the first time under the scheme.
Vidyuta's project could therefore contribute to India's cathode active material manufacturing ecosystem while supporting the development of a more integrated domestic battery supply chain.
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