What is the lithium ion battery price in India in 2022

What is the lithium-ion battery price in India in 2022

Looking for the best batteries and want to know about battery prices. Here's the info.

Foremost, batteries are an essential element for backup energy. There is an important requirement to understand this more briefly. 

The costly component of an electric car is the lithium-ion battery, which accounts for 40-50% of the total price. With the growing use of electric vehicles in our automobile system, the requirement for Li-ion batteries for EV applications is expected to soar. Other usages, such as renewable energy integration with the grid, will boost Li-Ion battery demand.

Price of lithium-ion batteries

The cost of lithium-ion batteries in India is one of the main issues that are likely to hamper market demand. These batteries are expensive due to the considered capital investment needed to create them. Therefore, depending on foreign countries for essential elements used in the production of lithium-ion batteries is a large retail case.

The average cost of a lithium-ion battery in India is Rs. 33 per watt-hour. Below is the latest 2022 cost list of lithium-ion batteries such as:

For home storage, LFP batteries are used.

The above-mentioned price details are an estimated one, it can depend on various factors. 

Differences in prices of a lithium-ion battery in India

In 2021, the average cost of a lithium-ion battery in India is Rs 25 per watt-hour. But in 2022, the cost of a lithium-ion battery increased by 8 times i.e. from Rs 25 per watt/hour to Rs 33 per watt/hr. 

Reasons for increasing prices of a lithium-ion battery

As the supply is gush worldwide demand and an absolute shift in favor of the EV powertrain in Western Europe and the US. Further, factors such as production curbs in China due to a lack of coal-fired power and blockage in shipping ways have harmed the supplies to India from its northern neighbor. China is an essential supplier of lithium-ion cells to India aside from South Korea and Taiwan. 

Similarly, manufacturers of cells prefer delivering to markets such as the wealthier neighborhoods in Europe and America (U.S.A). — or markets that ensure higher volumes. 

To be sure, sales of EVs remain minor in India in contrast with more mature markets such as China, America (U.S.A), and some European countries. 

Supply conditions have also greatly increased prices. Shipping expenses have increased. According to estimations, the price of shipping from China has surged four times compared with the previous year. 

Companies have also resorted to passing in cells through air freight in some issues to overwhelm deficiencies. All these have resulted in further charges for EV makers. The company focuses on huge orders received from some Europeans and Americans.

India has proposed a production-linked incentive (PLI) scheme for attracting assets in advanced chemistry cell manufacturing locally. It has set an economic outlay of Rs 18,100 crore for five years. 

However, new capabilities under this program will also take time to become functional in the Indian EV industry. 

Conclusion

The above-mentioned price is an evaluated one, it can vary on diverse factors. For the pricing, you can reach various sites such as Luminous, Havells, Tata Power Solar, Loom Solar, Waaree, etc.