PLI should focus on EV cell manufacturing to avoid becoming China's “EV colony”: GTRI

Making an interesting remark, The Global Trade Research Initiative(GTRI) on Friday called for the production-linked incentive scheme to focus more on manufacturing electric vehicle (EV) cells or lithium-ion cells rather than batteries as most value addition happens up to this stage.

Further, GTR stated that the government sector should let the domestic EV industry grow without any external subsidies as it would help India avoid getting under the umbrella of “EV colony” of China, according to a report by ET

“Since India does not have the expertise in cells making from core inputs, most firms import ready cells and make batteries by putting these cells in a box which is a superficial assembly work. PLI should not support such unsustainable operations,” citing Ajay Srivastava, GTRI founder, ET reported. 

He further underlined that the ongoing scheme concerning advanced chemistry cell battery manufacturing has given no commercially viable results.

The global EV industry is changing dramatically, with the United States, the European Union, and Canada placing substantial taxes and limitations on imports of EVs and parts from China. According to the research, these areas account for over half of China's global electric vehicle exports.

Furthermore, the think tank advised that the government invest in battery recycling infrastructure and promote renewable energy sources for EV charging stations.

The research also recommended increasing environmental regulation for EV manufacture and disposal to limit the carbon footprint and other negative effects of EV production.

Furthermore, accelerating the transition to a cleaner energy mix by including more renewable energy sources, such as solar and wind, will lower the carbon intensity of the power required to charge electric vehicles.

It also advocated for long-term sustainability by examining the complete lifecycle environmental effect of EVs, from manufacture to disposal, to reduce carbon emissions and environmental harm.