The centre is aggressively pushing to make the country a global electric vehicle (EV) hub. Two of India’s largest conglomerates, the Tata Group and JSW Group, are increasing investments in domestic research and development (R&D) across EV and battery technologies. Their combined investment is estimated at nearly $1 billion, aimed at strengthening India’s technological self-reliance and reducing dependence on foreign expertise, particularly from China.

The motivation is to achieve 'self-reliance' as the threats to dependence on the global supply chain become apparent when technologies are vital, and their supply is uncertain in geopolitically volatile areas with increasing trade barriers. It has become imperative for Indian companies to localise premium battery production not for future benefit, but with regard to sustained competitiveness and security (supply chain). The Tata Group's battery arm, Agratas Ltd., is being heavily backed by the group in terms of resources. It is spending more than Rs. 400 million towards a new R&D facility in Bengaluru. The facility will specialise in R&D of Lithium Iron Phosphate (LFP) and Lithium Manganese Iron Phosphate (LMFP) battery chemistries, which are key for stationary energy storage and EVs. 

In the same manner, the JSW Group is making significant investments in developing cutting-edge internal expertise. Though specific investment details are not mentioned, the group aims to promote indigenous innovation for the next generation of electric mobility in India. Both groups are building centres to evade the reliance on imported technologies.  

The batteries are the highest cost factor for EVs, and can make up as much as 40 per cent of the total car cost. Tata's and JSW's proprietary battery chemistries will help create more aAordable and accessible EVs for the Indian mass market. The emphasis is on LFP chemistries in particular, making it a preference for safety, longevity, and cost eAectiveness. 

It is a major increase in domestic R&D that coincides with the times of uncertainty in the global supply chain. China's stricter control on the major battery raw materials and exports of battery technologies is oAering an opportunity to Indian-based firms to build up a robust domestic ecosystem. These investments are expected to ripple in an eAect that will stimulate ancillary industries and startups to participate in a self-sustaining value chain of EVs to make India an exporter of advanced energy solutions in the future.