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The Government of India is in the final stages of approving a ₹12,000 crore incentive scheme

ICICIdirect Research 18 Jun 2026 DISCLAIMER

News: As per media reports, The Government of India is in the final stages of approving a ₹12,000 crore incentive scheme aimed at promoting domestic manufacturing of critical advanced battery components, including cathode active materials (CAM), anode active materials (AAM), electrolytes, and copper foil separators. The move comes as India targets significant expansion in battery manufacturing capacity, with industry estimates projecting demand for over 200,000 tonnes of AAM and 400,000 tonnes of CAM by 2030 to support around 223 GWh of domestic battery capacity.

View: We believe the proposed fiscal incentives and tax support measures are positive for battery material players. The initiative, coupled with requests for import-duty concessions on capital equipment and a reworked duty structure to address inverted duty anomalies, could improve the competitiveness and economics of domestic manufacturing projects. Notably, Gujarat Fluorochemicals has announced its entry into natural graphite anode active materials (AAM), a critical component of lithium-ion batteries. Similarly, Neogen could also be the likely beneficiary for a growing localisation drive. The proposed measures are expected to complement the existing ₹18,100 crore ACC battery manufacturing PLI scheme and reduce India’s heavy reliance on imports.

Impact: Positive

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