InvestorQ : Is it true that India is trying to reduce its dependence on China for lithium batteries?
Angel dcosta made post

Is it true that India is trying to reduce its dependence on China for lithium batteries?

Answer
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Anamika Sodhani answered.
3 months ago


The COVID-19 pandemic has raised some serious concerns over the sustenance of supply chains from China. That had created immense problems for Indian companies and one such classic example was the lithium batteries manufacturing which is literally dominated by China. Now Indian companies are looking at alternatives to China to supply lithium batteries although it may be tough to find alternatives that can match the scale of China. Now, lithium batteries power almost everything from smart phones, laptops and electric vehicles. Over the years, China invested heavily in mining lithium and rare earth minerals that go into these batteries including from mines in Latin America, Africa and Australia. China currently manufactures 70% of the world’s lithium-ion batteries. This becomes all the more important for electric cars as lithium batteries account for nearly 40% of the cost of an electric car. China has managed to scale the manufacture of lithium batteries to such an extent that costs have fallen by 85% in the last 10 years and could fall by another 35% from here. Alternatives may be easier said than done.