Executive Summary:
The Ministry of Heavy Industries acknowledges India's dependence on Asian countries, particularly China, for lithium-ion batteries used in EV production, which exposes the industry to supply chain risks and price fluctuations. The National Critical Mineral Mission (NCMM) was launched on January 29, 2025, with a proposed expenditure of Rs. 16,300 crore over seven years, aiming for critical mineral self-reliance. The ministry conducts regular reviews of projects under the Advanced Chemistry Cell battery program.
Key Points / Main Content:
Lithium-ion Battery Dependence:
* India relies heavily on imports of lithium-ion batteries and basic EV production requirements from Asian countries, especially China.
* This dependence exposes the industry to supply chain vulnerabilities and price volatility.
Production Linked Incentive (PLI) Scheme:
* The National Programme on Advanced Chemistry Cell (ACC) Battery Storage has awarded 40 GWh ACC capacity to four beneficiary firms.
* Projects are currently under implementation.
* One firm has installed 1 GWh ACC capacity and is under pilot run.
National Critical Mineral Mission (NCMM):
* Launched on January 29, 2025, for seven years (2024-25 to 2030-31).
* Proposed expenditure of Rs. 16,300 crore and expected investment of Rs. 18,000 crore by PSUs and stakeholders.
* Aims to secure a sustainable supply of critical minerals and strengthen domestic value chains.
* Ministry of Mines has entered into bilateral agreements with countries like Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, Cote D'Ivoire and organizations like IEA.
* Khanij Bidesh India Limited (KABIL) was established to acquire overseas mineral assets, focusing on lithium and cobalt.
* KABIL has signed an Exploration and Development Agreement with CAMYEN in Argentina for lithium exploration and mining and acquired 15,703 hectares for this purpose.
* KABIL is also exploring joint investments in Australian projects.
* Ministry of Mines is engaging in multilateral platforms like MSP, IPEF, and iCET to strengthen the critical minerals value chain.
Advanced Chemistry Cell (ACC) Battery Program Review:
* Monthly review workshops and quarterly field visits are conducted by the Ministry of Heavy Industries (MHI).
* The reviews assess project implementation progress of beneficiary firms and provide necessary support.
Impact Analysis:
Ministry of Heavy Industries (MHI):
* Impact: Responsible for administering the PLI scheme and reviewing project progress.
* Action Required: Continue monitoring PLI projects through monthly workshops and quarterly visits, and provide support to beneficiary firms.
Beneficiary Firms (Under PLI Scheme):
* Impact: Implementing ACC battery storage projects.
* Action Required: Continue project implementation and report progress to MHI, one firm must continue pilot run of installed 1 GWh ACC capacity.
Ministry of Mines:
* Impact: Leading the National Critical Mineral Mission (NCMM) and securing critical mineral supplies.
* Action Required: Execute the NCMM, strengthen international collaborations, and oversee KABIL's activities.
Khanij Bidesh India Limited (KABIL):
* Impact: Responsible for acquiring overseas mineral assets.
* Action Required: Continue exploration and development activities in Argentina and explore joint investments in Australia.
EV Manufacturers in India:
* Impact: Affected by the availability and cost of lithium-ion batteries and critical minerals.
* Action Required: Monitor the development of domestic battery production capacity and critical mineral sourcing initiatives.
Public Sector Undertakings (PSUs) and Other Stakeholders:
* Impact: Expected to invest in the NCMM.
* Action Required: Contribute to the Rs. 18,000 crore investment target for the NCMM.
Key Entities Referenced
Ministry of Heavy Industries (MHI): The Indian government ministry responsible for administering the Production Linked Incentive (PLI) scheme and reviewing the progress of Advanced Chemistry Cell (ACC) battery projects.
Production Linked Incentive (PLI) Scheme: A government initiative designed to boost domestic manufacturing, including gigafactory projects for Advanced Chemistry Cell (ACC) battery storage.
National Programme on Advanced Chemistry Cell (ACC) Battery Storage: A scheme administered by the Ministry of Heavy Industries (MHI) that has awarded 40 GWh ACC capacity to beneficiary firms.
National Critical Mineral Mission (NCMM): A mission approved by the Union Cabinet to secure a long-term sustainable supply of critical minerals and strengthen India's critical mineral value chains.
Ministry of Mines: The Indian government ministry responsible for the National Critical Mineral Mission (NCMM) and international collaborations for mineral resources.
Khanij Bidesh India Limited (KABIL): A joint venture company set up by the Ministry of Mines to identify and acquire overseas mineral assets, specifically targeting minerals like Lithium and Cobalt.
Catamarca Province, Argentina: A province in Argentina where KABIL has acquired hectares for lithium exploration and mining, partnering with CAMYEN.
Australia: A country with which India is exploring joint investments in large value projects in collaboration with Indian PSUs through KABIL.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 3775
ANSWERED ON 12.08.2025
DEPENDENCE ON CHINESE LITHIUM-ION BATTERIES
3775. SHRI K SUDHAKARAN:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) whether the Government acknowledges that over 75% of lithium-ion batteries used in Indian
EVs are currently imported from China and Southeast Asia and if so, the impact of this
dependency on domestic supply chains;
(b) the current status of domestic giga-factory projects sanctioned under the Production-Linked
Incentive (PLI) scheme, including the number of operational projects and total output in the year
2024–25;
(c) whether any timelines have been set for critical mineral self-reliance including lithium, cobalt
and nickel sourcing from non-China routes; and
(d) whether any review has been conducted on missed production targets under the Advanced
Chemistry Cell battery programme?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): Yes, India is mostly dependent on other Asian countries, inter-alia, for lithium-ion
batteries and other basic requirements for the production and promotion of EVs in India,
exposing the industry to supply chain risks and price fluctuations. Most of the global battery
value chain imports originate from China, as the country has significant presence across the
value chain.
(b): Under the Production Linked Incentive (PLI) Scheme namely “National Programme on
Advanced Chemistry Cell (ACC) Battery Storage”, administered by the Ministry of Heavy
Industries (MHI), a total of 40 GWh ACC Capacity has been awarded to 4 beneficiary firms,
and the projects are under implementation. One beneficiary firm has confirmed installation of
1 GWh ACC capacity, under pilot run at present.
(c): As per the information received from Ministry of Mines, the Union Cabinet has approved
the launch of the National Critical Mineral Mission (NCMM) on 29th January, 2025, for a period
of seven years from 2024-25 to 2030-31, with a proposed expenditure of Rs.16,300 crore and an
expected investment of Rs.18,000 crore by Public Sector Undertakings (PSUs) and other
stakeholders. The NCMM aims to secure a long-term sustainable supply of critical minerals and
strengthen India’s critical mineral value chains encompassing all stages from mineral
exploration and mining to beneficiation, processing, and recovery from end-of-life products.-2-
In the interest of developing bilateral cooperation with countries having rich mineral
resources, Ministry of Mines has entered into bilateral agreements with the Governments of a
number of countries such as Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique,
Malawi, Cote D’Ivoire and International organizations such as International Energy Agency
(IEA).
Ministry of Mines has also set up Khanij Bidesh India Limited (KABIL), a joint Venture
company with the objective to identify and acquire overseas mineral assets that hold critical and
strategic significance, specifically targeting minerals like Lithium, Cobalt, etc. KABIL has
signed an Exploration and Development Agreement with CAMYEN, a State-owned enterprise
of Catamarca province of Argentina for Exploration and Mining of 05 Lithium Blocks in
Argentina and has acquired 15,703 hectares in Catamarca Province, Argentina, for lithium
exploration and mining. KABIL is also exploring joint investments in large value projects in
Australia in collaboration with other Indian PSUs.
Ministry of Mines is also engaging on various multilateral and bilateral platforms such
as Minerals Security Partnership (MSP), the Indo-Pacific Economic Framework (IPEF), and
initiative on Critical and Emerging Technologies (iCET) for strengthening the critical minerals
value chain.
(d): Yes, monthly review/ workshops and quarterly field visits are conducted by MHI to
review the progress in the implementation of the projects of the beneficiary firms and necessary
handholding.
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