Energy storage solutions are increasingly prevalent because of a shift to cleaner electricity. The popularity of electric vehicles and solar power storage has augmented the global battery market. Following section highlights the important aspects of international trade in EV and solar power battery development.

Industry Insights

Asia Pacific dominates the market in terms of production and consumption of EV and solar batteries. The region is home to ten biggest Electric Vehicle (EV) battery manufacturers in the world. CATL (China), LG Energy Solutions (South Korea) and Panasonic (Japan) account for 70% of global EV battery production. Firms like Tesla, Peugeot, Hyundai, Honda, Toyota, Volkswagen, Volvo, Jaguar and Audi acquire their batteries from these three companies. The solar power storage batteries consisting lithium-ion or lead-acid are also largely produced by Chinese manufacturers, followed by Europe and North America. With the rapid growth in sustainable energy storage solutions the demand for solar batteries has driven up. Some of the major manufacturers of solar batteries include BYD Company, Kokam, Carnegie Clean Energy, Primus Power, LG Chem and EnerSys.

Source: Pixabay

Indian Battery Market

Electric Vehicle Batteries

The global market is enduring fuel supply disruptions and since the market is volatile, alternate solutions are sought. India has also tried to reduce its staggering $24.7 billion fuel import bill. India’s transport minister Nitin Gadkari aspired to see only electric vehicles on Indian roads by 2030. The target was cut back for cars, but two and three-wheelers are on the way to achieve the target. The rise in Indian EV market has catapulted the need for battery manufacturing firms in India. The country mostly relies on international market to meet the demand, 70% of lithium ion batteries are imported from China and Hong Kong. Investments worth $10 billion in battery manufacturing are required to meet domestic consumption. The Indian government has made allotment for 50 GWh of battery capacity to 4 successful bidders including Bhavish Agarwal’s Ola Electric Mobility, Reliance, Mahindra & Mahindra, Larsen & Toubro and South Korea’s Hyundai Motor for incentive under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage to boost domestic value addition.

 American EV makers firms such as  Tesla may enter the Indian market. The Biden administration like the Indian government, has also allocated funds amounting to $3 billion for EV battery production. These policies led to a surge in EV battery manufacturing commitments in the U.S. General Motors, Ford, Samsung and a few other companies are building new facilities for EV battery production. Both countries have ample opportunities to collaborate in this emerging market.

Solar Batteries

Source: Freepik.com

According to Indian Ministry of Commerce and Industry data, China is the biggest source of imported solar batteries to India, followed by Malaysia and Thailand accounting for $578 million, $20 million and $16 million of imports respectively. The US was the primary market for Indian solar cell exports. Adani and Reliance New Energy, Vikram Solar Jindal India Solar and Shirdi Sai Electricals, are making substantial investments in the solar battery manufacturing under PLI Scheme. Many Indian businesses, are attempting to expand into the whole solar PV manufacturing value chain as part of a strategic shift away from fossil fuels. To introduce innovative technologies in the field of renewable energy, they look for partnerships. With the launch of the PLI scheme, American solar PV producers with innovative manufacturing technologies for high efficiency modules now have major potential for technology licensing in India.

Conclusion

As the third largest carbon emitting country in the world, India seeks to work on sustainable solutions like production of EV and solar batteries. Meanwhile, renewable energy sector market developments create business prospects for U.S. companies.