Reliance on China for lithium holding back India’s EV battery push: Maruti Suzuki Chairman

The risk associated with sourcing of lithium due to over dependence on China as the single source is one of the reasons for investors not investing in battery cells manufacturing in India in a major way, Maruti Suzuki India Chairman RC Bhargava said on Tuesday.

Speaking at the sidelines of the beginning of exports of Maruti Suzuki India's first electric vehicle e-VITARA to 100 countries, and also the inauguration of production of lithium-ion battery cells for strong hybrid electric vehicles at its facility here, Bhargava hoped that Indian scientists would be able to come up with technologies that can solve reliance on external supplies.

"We don't make EV batteries yet...Nobody is making battery cells in India. One of the problems of EVs today is that people are packaging the cells into batteries, but actual production of cell is not taking place (in India)," he said.


Bhargava asserted that setting up plants for the production of battery cells "is a very capital-intensive proposition".

Citing industry estimates, he said it could cost about Rs 20,000 crore to put up a battery plant.

"The raw material (lithium) is a problem. If I put up a plant, if the raw material is not available to me, as an investor, what is my risk... especially if the raw material is controlled by one supplier?" he wondered.

Stating that "the risk is very high", he said, "That is possibly one of the factors which is making people stay away from making investments in battery manufacturing in India."

He further noted, "How do I protect myself against the arbitrary decision by the supplier?"

Asked if partnerships with other firms solve the problem, Bhargava said, "Either you partner with a Chinese company, give them majority and let them set up, and they assure you the supply of raw material, but so far no one has done it yet."

Maruti Suzuki's subsidiary TDS Lithium-Ion Battery Gujarat Pvt Ltd (TDSG) has become the first company in India to achieve electrode-level localisation of lithium-ion battery cells.

It has started manufacturing of the first lithium-ion battery, cell and electrode for a strong hybrid electric vehicle at the facility here.

TDSG started production of batteries for mild hybrid vehicles in 2021 and has since produced battery packs for a total of over 10 lakh vehicles. It has made a total investment of Rs 4,267 crore and has a planned expansion of 12 million cells per annum.