Battery costs for EVs and energy storage set to come down, says INOXGFL group's executive director Devansh Jain

New Delhi: Import duty waivers on critical minerals such as lithium are set to bring down the costs of batteries both for electric vehicles and energy storage, according to INOXGFL group's executive director Devansh Jain.

"Battery chemicals constitute about 35% of the value of EV batteries. Reducing import duties on lithium and other critical minerals will help lower battery costs, thereby decreasing the overall cost of EVs," he said. "The initiative, along with the PLI scheme, will further spur investments in EV battery manufacturing."

Jain also highlighted the waiver impact on the energy storage space. "Going ahead, in FY25, 15-20 GW of hybrid, round-the-clock and firm, dispatchable renewable energy tenders are expected to be awarded. With this, battery energy storage systems will also gain traction. However, the current cost of battery storage remains prohibitively high for large-scale, mainstream adoption, we need a significant reduction in the battery costs," said Jain.