Government Will Give Battery Makers Incentives in Electric Vehicle Push

India will give incentives to battery makers to set up more manufacturing units as the government looks to intensify the promotion of electric vehicles, the ministry for renewable energy said on Friday.

Prime Minister Narendra Modi's administration has set a goal to ensure all new vehicles sold in the country are electric by 2030. But such vehicles are expensive due to the high cost of batteries, most of which are imported.

Renewable Energy Minister R.K. Singh held talks with battery manufacturers and asked them to set up units in India, assuring them the government would give incentives to the sector, a ministry statement said.

The government was also in talks with resource-rich countries to ensure supplies of raw materials such as lithium, which are needed to manufacture batteries.

"(Singh) exhorted the industry to set up battery manufacturing units in India as future demand was going to be very high with the government promoting e-vehicles in a big way," said the statement.

The statement did not specify which companies were represented at the talks nor what sort of incentives would be given.

India's electric vehicles push is likely to benefit automakers such as Tata Motors and Mahindra and Mahindra Ltd.

© Thomson Reuters 2018