Greenko to make investments around $1 billion in new battery storage business

Greenko Energy Holdings objectives to make investments around $1 billion in a new battery storage business that also consists of a plan to provide lithium-ion batteries in India for energy grid-scale applications and electric powered vehicles (EV), stated a person aware of the development.

The sparkling capital for renewables 3.0 funding will be deployed through the Hyderabad-based organization to gather and expand lithium-ion battery technology, and for its production and application playbook. This comes in opposition to the backdrop of the single-biggest foreign clean energy funding announcement in India made through Japan’s ORIX Corp. for $980 million in Greenko for a 17% stake.

Sovereign funds GIC Holdings Pte. Ltd and Abu Dhabi Investment Authority (ADIA)-sponsored Greenko’s pivot in the direction of battery storage comes amid India readying its proposed ₹18,000-crore production-connected incentive bundle for battery storage production, Mint had mentioned earlier. India additionally plans to issue tenders for putting in Tesla-style gigafactories for cell and battery production.

As China dominates the lithium-ion cell production, India desires to keep away from a repeat of events with solar device production in which China leveraged its first-mover benefit to seize the market. The price chain accommodates processing of raw substances and production of separators, cathodes, electrolytes, anodes, cells, and battery storage packs.

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“Greenko has made the transition into a clean technology and solutions platform from pure play energy supply through planned investments in global battery and deep tech companies with intellectual property and indigenization of technology and manufacturing of Li-on batteries for grid and mobility needs of India,” said the person cited above requesting anonymity.

India plans to impose tariffs on imports of lithium-ion cells for as long as a decade and provide incentives to producers inclusive of 100% tax deduction on capex withinside the first 12 months of operation under Section 35 AD, concessional financing alternatives by giving corporations deemed infrastructure status and waiver of minimal alternative tax.

Globally, lithium-ion cell production is ruled by China, accompanied through the US, Thailand, Germany, and Sweden. Tensions alongside the India-China border have triggered India to expedite home production.

India does not have sufficient lithium reserves and is for this reason seeking to stable supplies. Meanwhile, Chinese country corporations have procured lithium mine concessions in Bolivia, Argentina and Chile, which shape the so-referred to as lithium triangle.