Advanced Chemistry Cell (ACC): India’s Leap into an Independent Automotive Industry Future
The automotive industry is one of the fundamental pillars of India’s economy, contributing to nearly 6% of India’s GDP. Several manufacturing agencies were established to fulfill the growing demand. However, due to a need for raw materials and proper infrastructure for manufacturing components, India had to rely on the import of foreign raw materials. The recent discovery of large mineral reserves all over the Indian subcontinent has led to a massive wave of events related to developing the domestic automobile industry.
Electric vehicles are a new sustainable approach based on Advanced chemistry cell (ACC) technology. ACCs use energy stored in electrochemical or chemical form and are fundamentally composed of lithium-ions. This innovative technology reduces fossil fuel demand while catering to several markets. The ACC demand is expected to grow to 50% by 2030, with India importing ₹11,000 crore worth of lithium batteries from China and Japan in 2023.
The lack of battery manufacturing infrastructure, a supply chain, and immense dependence on imports severely limited the development of the Indian automobile sector. A chain of geographical discoveries led to a race to establish domestic battery manufacturing plants. India generated a lithium-ion import bill of INR 23,171 crore for the financial year 2023. The discovery of lithium mines in Jammu Kashmir, parts of Karnataka, and now Rajasthan was able to meet around 80% of this demand.
To promote the industry, the parliament passed a law authorizing the government to auction these lithium reserves by removing them from the list of atomic minerals. Under the law, compounds on the list of atomic minerals cannot be auctioned to or excavated by private agencies. The existing Khanij Bidesh India Limited (KABIL) further protected the interests of these companies.
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“This embarks a new chapter in India’s manufacturing industry as we set the vision for battery manufacturing and compete globally with other nations in this sunrise sector” stated Mahendra Nath Pandey, Union Minister for Heavy Industries. Signed on 28 July 2022, the three major giants won the government-initiated bid: Ola Electric Mobility Private Limited, Rajesh Exports Limited, and Reliance New Energy Limited. Rajesh Exports and Reliance were awarded 5 GWh capacity each, while Ola Electric was awarded 20 GWh.
In conclusion, the remarkable growth experienced by the automotive industries in recent years combines the efforts put in by private enterprises and the government sector. Coming a long way since its initial genesis, India is the fourth-largest producer of automobiles globally. Recent geological discoveries proved to be the boost we needed to establish a semi-independent industry. Combined with legislative incentives and commitments of major companies, we can dominate the global automotive industry in the near future.
Joshua Austin joined News Gazzte as a senior editor in 2023. Joshua is an automotive journalist who previously worked as an autonomous vehicle test engineer at Uber. He holds a bachelor’s degree in computer science, with a specialization in technical writing and journalism. Joshua’s enthusiasm lies in automotive technology and the evolution of transportation. He remains vigilant in tracking the most recent developments in electric vehicles, autonomous driving, and other emerging technologies.