India’s 20GWh battery capacity yet to take off due to visa issues for Chinese technicians

“These technicians are required in the initial phase of setting up the project in terms of installation of the facility,” one of the people mentioned above said on condition of anonymity.

Indian companies have outlined plans to set up around 100GWh of cumulative capacity so far. Of this, 40GWh capacity was awarded under the advanced chemistry cells (ACC) production-linked incentive (PLI) scheme by the ministry of heavy industries.

About 20GWh of the remaining 60GWh, which is outside the PLI scheme, is now under the pump.

Among the companies impacted by the delay are Exide Energy Solutions, a subsidiary of Exide Industries, Himadri Specialities and Epsilon Advance Materials, according to the people cited above.

Also read | Budget 2024: Govt working on PLI scheme for making shipping-grade containers

While Exide Energy would develop lithium-ion batteries, Himadri Speciality Chemicals and Epsilon Advanced Materials are ACC battery component manufacturers, which produce cathode, anode, electrolyte and separator.

Some of their facilities were expected to start production by this year-end, according to the India Energy Storage Alliance (IESA). One GWh of battery capacity can power 1 million homes and around 30,000 electric cars for an hour.

According to IESA, although the imported equipment from China has started arriving in India, Indian manufacturers are dependent on Chinese manufacturers for their installation and construction (I&C) on site.

A spokesperson from Epsilon said in response to a query from Mint that the company is building mega scale capacity for EV battery raw materials with experts and technicians from South Korea, Japan and China.

According to IESA, although the imported equipment from China has started arriving in India, Indian manufacturers are dependent on Chinese manufacturers for their installation and construction (I&C) on site.

“While the ease in visa processing was limited to PLI companies, a recent discussion with ministry of heavy industry has supported for the same for non-PLI/PLI associate companies who are into battery and battery raw material industry,” the spokesperson added. The visas will be for subject experts for critical technical setups, R&D, equipment commissioning from China and other countries.

“This 20GWh capacity can be completed in the next 12-24 months as the visa process eases,” said Debi Prasad Dash, executive director of IESA, adding that companies in the PLI scheme have not faced any issue so far.

Queries sent to the ministry of heavy industries, Exide Industries, and Himadri Speciality Chemicals remained unanswered till press time.

Why Chinese specialists are required

More than 600 specialized machines are required to set up an ACC factory over about six months. These skills, according to industry experts, are not available in India.

Most of the equipment manufacturers are Chinese and technical expertise required for the installation and commissioning of the plants is exclusively with them.

Also read | India dialling China for its lithium-ion cell ambitions despite tensions

“China currently dominates the battery supply chain, including the critical machinery needed for battery production,” Pradeep Karuturi, lead, Centre for Clean Mobility, OMI Foundation said. “We rely on China for training our workforce to operate this machinery.”

Karuturi, however, added that with growing demand for gigafactories and increased localisation, machinery production may also shift to India in the future.

New visa portal

The Centre has recently created a dedicated visa portal to expedite business visa applications for foreign technicians for sectors that are provided PLI support.

Rajesh Kumar Singh, secretary of department for promotion of industries and internal trade (DPIIT), had said in July that the department is also working on a streamlined visa process for strategic sectors that do not have the PLI benefits.

In 2022, Ola Electric Mobility was awarded 20GWh, and Reliance Industries and Rajesh Exports were awarded 5GWh each. Last week, the MHI also awarded an additional 10GWh to Reliance Industries.

Exide Energy, Amar Raja, Tata Group-promoted Agratas, JSW Energy, Nash Energy, Log9 Materials, and others are invested in the lithium-ion battery manufacturing capacity, apart from those in the PLI scheme.

And read | Govt scientific advisor wants lithium alternatives explored amid global race

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