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The government is considering a ₹12,000 crore support scheme to promote domestic manufacturing

ICICIdirect Research 18 Jun 2026 DISCLAIMER

News: As per media sources, the government is considering a ₹12,000 crore support scheme to promote domestic manufacturing of advanced battery components and reduce import dependence. The proposed scheme is expected to cover cathode active materials, anode active materials, electrolysers, and copper foil separators. 

View: The proposed scheme is positive for HEG, which is entering the battery materials space through a 20,000 TPA graphite anode facility with an investment of ~₹2,250 crore, expected to be commissioned by FY28. Similarly, Graphite India is also venturing into the synthetic graphite anode segment and has signed an MoU with the Maharashtra government for the proposed project, making both companies key beneficiaries of incentives for anode active materials. The inclusion of copper foil under the scheme is also positive for Hindalco, which is setting up a battery-grade copper foil manufacturing facility catering to EV and Battery Energy Storage System (BESS) applications. Overall, the scheme could accelerate localisation of the battery supply chain and create long-term growth opportunities for domestic players.

Impact: Positive

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