Jayadev Galla, Chairman of Amara Raja Energy and Mobility, indicated that in two years, it might be necessary to think about imposing anti-dumping duties on lithium-ion batteries from China. Galla noted that India’s battery-manufacturing sector may require safeguards against lower-priced Chinese imports, particularly if a price war occurs.
“When nobody is making cells in India, having a more liberal policy to get the industry is started, is useful,” said Galla, “As we start having the capability to manufacture, and until we get to a global scale where we can be competitive, we are going to need some protection, and I think the government is aware of that.”
When specifically asked if he was proposing anti-dumping duties on Chinese battery imports, Galla said: “Yes, absolutely – the time (for that) is not right now, but when we have some capacity in the country – in about two years from now.”
The chairman of the Amara Raja Group was speaking to CNBC-TV18 a day ahead of the company launching its battery cell gigafactory near Hyderabad. Amara Raja Energy and Mobility Ltd recently announced an eventual investment of ₹9,500 crore towards opening a gigafactory for the production of battery packs and Lithium ion cells.
“Our first phase will have a battery pack facility with a capacity of 5GWH,” said Galla, “The first phase of our cell-manufacturing will being production by April-June 2025, and will reach its eventual capacity of 16 GWH by the end of FY-27.” Amara Raja’s strides in battery cell production aside, Galla added that the battery cell supply chain will need policy intervention to rely less on imports.
“Giving us incentives and hand-holding is good, but actually going out and securing the supply chain like the Chinese Government has done – or incentivising us to do that, is what is required,” he said, “China doesn’t own 80% of the minerals, but are processing these minerals. Similarly, if we want the private sector to invest in mining or refining, we have to provide incentives.”
The Amara Raja boss brushed aside suggestions that India’s cell manufacturing may be stretched to an oversupply akin to China’s present-day production, since domestic supply still wasn’t meeting existing demand: “Our planned investments are not going to meet the planned demand, so there is room for more.”
Galla also said he had doubts over the intent of multiple companies making a foray into the battery ecosystem, pointing out that only a handful of companies were investing in cell-making as opposed to battery-pack production. “A cell requires huge amounts of capital expenditure since you are getting into electrochemistry,” he said, “That’s where you need to watch how many companies are investing.”
Pointing to the influx of multiple companies wanting to capitalise on the PLI scheme in lithium ion batteries and battery packs, Galla also said he was cynical about their progress: “If you look at who is making progress and putting money into not just packs but cells, it is a very small number. We are included in that small group; the others don’t have the capability, knowledge or motivation.”
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