TL;DR
India's domestic EV battery manufacturing is hampered by China's strict technology transfer rules, forcing increased reliance on Chinese imports despite 'Make in India' initiatives.
India's aspirations to significantly ramp up domestic electric vehicle (EV) battery production are facing obstacles due to stringent technology transfer regulations imposed by China. This challenge is impacting major Indian conglomerates like Reliance Industries Ltd., which reportedly paused its lithium-ion cell manufacturing plans after failing to secure essential Chinese expertise.
China's requirement for State Council licenses for overseas transfer of core battery technology is hindering India's 'Make in India' initiative, despite substantial fiscal incentives allocated for cell production capacity. Consequently, India's imports of lithium-ion cells have surged, with China supplying a dominant 75% of the volume. This dependency highlights the need for India to navigate geopolitical complexities while fostering self-reliance in its critical EV supply chain.
