KOLKATA: China could swamp India's lithium ion large storage battery market with highly competitive products if the government does not push on with research and policies in this segment, some analysts have warned.

According to reports, China is spurring a huge domestic supply ecosystem for lithiumion-based batteries through demand creation and incentives. The country is close to capturing at least 60% of the global market by 2020, overtaking Japan and South Korea.

Analysts said without the Indian government's help, the country could lose this critical segment to Chinese manufacturers. "After squeezing global solar module manufacturers out of business, China is using every trick available – government subsidies, domestic quotas, restriction on foreign players and cornering raw material supplies – to dominate energy storage industry, which has been so far led by Japanese and Korean manufacturers such as Panasonic, Samsung SDI and LG Chem," said Vinay Rustagi, managing director at Bridge to India.

India's National Electric Mobility Mission Plan (NEMMP) 2020 projects sales of six-seven million units of electric vehicles and a resultant fossil fuel saving of 2.2-2.5 million tonnes. But the government may not be doing enough. "NTPC has announced that it will look to create a battery charging ecosystem across the country to promote adoption of electric vehicles (refer). However, in the absence of any cogent, long-term policy, such plans remain pipe dreams," he said.

Source: (Economic Times)