Jayadev Galla, Chairman of Amara Raja Energy and Mobility, illustrated that in two years, it might be essential to think about commanding anti-dumping duties on lithium-ion batteries from China. Galla recognized that India’s battery-manufacturing sector may need safeguards against lower-priced Chinese imports, especially if a price war arises.
According to Galla, “having a more liberal policy to get the industry started is useful when nobody is making cells in India. As we start having the capability to manufacture, we are going to need some protection, and I think the government is aware of that until we get to a global scale where we can be competitive.”
Galla responded, “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,” when asked directly if he was proposing anti-dumping tariffs on Chinese battery imports.
The Amara Raja Group chairman was chatting with CNBC-TV18 one day before the company announced the opening of its gigafactory for battery cells close to Hyderabad. Amara Raja Energy and Mobility Ltd recently declared that it will invest ₹9,500 crore in total to establish a gigafactory that will produce lithium ion cells and battery packs.
Galla stated, “The first phase of our cell-manufacturing will begin production by April-June 2025, and will reach its eventual capacity of 16 GWH by the end of FY-27.” The first phase will include a battery pack plant with a capacity of 5 GWH. Despite Amara Raja’s advancements in battery cell manufacturing, Galla said, regulatory changes in the battery cell supply chain are necessary to reduce reliance on imports.
“Offering us incentives and support is helpful, but what is really needed is for us to go out and secure the supply chain, as the Chinese government has done, or to be incentivized to do so,” he stated. “China is not the owner of 80% of the minerals, but it is processing them. Similar to this, we must offer incentives to the private sector in order to encourage it to engage in mining and refining.
Since domestic supply was still falling short of demand, the Amara Raja CEO dismissed claims that India’s cell manufacture may reach an oversupply similar to China’s current production: “There is room for more investment because our planned investments will not meet the planned demand.”
Additionally, Galla expressed his skepticism on the motives behind numerous companies venturing into the battery ecosystem, citing the fact that a small number of companies were investing in the development of cells rather than battery packs. He stated, “Since you are getting into electrochemistry, a cell requires huge amounts of capital expenditure. That is where you need to watch how many companies are investing.”
Galla expressed his cynicism on the growth of lithium ion batteries and battery packs, citing the flood of numerous companies seeking to profit from the PLI scheme. He stated, “If you look at who is making progress and putting money into not just packs but cells, it is a very small number.” The others lack the skills, expertise, or drive, but we are part of that select group.”
