Lithium-ion manufacturing capability: How India can learn lessons from the energy policies and strategies of the United States, Europe, and China.

India, like many other countries, is facing a challenge in building a sustainable energy future. To do so, it can learn from the policies and strategies of other countries, such as the United States, Europe, and China. These countries have invested heavily in energy storage technology and battery manufacturing, which is critical for achieving renewable energy goals. In this blog article, we will discuss the lessons India can learn from the energy policies and strategies of the United States, Europe, and China.

China is a leader in the global energy storage market, and it has invested heavily in R&D, including $214 million as part of the 12th Five Year Plan to explore and develop innovative technology and advanced battery solutions, with subsidies to battery manufacturers BYD (Build Your Dreams) and CATL (Contemporary Amperex Technology Co. Limited). China has also cultivated the world’s largest electric vehicle market, with the nation’s cumulative electric vehicle sales in the past decade representing 47% of the world’s total. The demand for EVs played a vital role in spurring the battery manufacturing ecosystem in China. India can learn from China’s investment in R&D, its subsidies to battery manufacturers, and its focus on creating demand for EVs.

Several countries in Europe are trying to compete for a leadership position in the energy storage market. The European Commission leads these efforts through the European Battery Alliance (EBA). The EBA serves as a “cooperation platform” that aims to create a competitive battery manufacturing value chain in Europe. To that end, the Alliance oversees the European Commission’s Strategic Action Plan on Batteries, which outlines a variety of commitments, including efforts to secure raw materials for the industry, improve regulatory frameworks, and directly support cell manufacturing. Europe’s strategy has benefited from its focus on cross-sectoral collaboration and coordination. EBA and other similar efforts have played the role of investment facilitation while laying the foundation for recent performance-based investments. India can learn from Europe’s focus on cross-sectoral collaboration and coordination, and investment facilitation.

The United States’ investment in battery manufacturing began in 2009, with the American Recovery and Reinvestment Act. This program led to significant funding of battery manufacturing facilities across the country, with awards totaling $1.4 billion in grants going to a variety of facilities with the intention of accelerating the development of a domestic battery supply chain. The United States has also announced its intention to use the Defense Protection Act to encourage domestic production of battery materials. This is aimed at reducing barriers for companies receiving government funding for extraction of lithium, nickel, cobalt, graphite, and manganese. India can learn from the United States’ focus on accelerating the development of a domestic battery supply chain, and its intention to use the Defense Protection Act to encourage domestic production of battery materials.

In conclusion, India can learn from the policies and strategies of the United States, Europe, and China. China’s investment in R&D, its subsidies to battery manufacturers, and its focus on creating demand for EVs; Europe’s focus on cross-sectoral collaboration and coordination, and investment facilitation; and the United States’ focus on accelerating the development of a domestic battery supply chain, and its intention to use the Defense Protection Act to encourage domestic production of battery materials. India can adopt these policies and strategies to build a sustainable energy future, and achieve its renewable energy goals.