Report Launched at IVCA GreenReturns Summit 2025: CATALYSING CLEAN TECH BATTERY MANUFACTURING: Strategic tax Reforms for a Future-ready industry – By IVCA – Trilegal and Bharat Climate Forum

At Day 2 of the IVCA GreenReturns Summit 2025, a new whitepaper titled “CATALYSING CLEAN TECH BATTERY MANUFACTURING: Strategic tax Reforms for a Future-ready industry” was launched by IVCA, Trilegal and Bharat Climate Forum – outlining a clear roadmap to strengthen India’s advanced battery ecosystem and accelerate the country’s clean energy transition.

“The government has shown tremendous foresight in promoting green mobility and clean technology. The whitepaper highlights that the next step is to create greater policy synergy by aligning customs duty and reducing GST on all advanced batteries to 5%. This would help lower battery costs, make EVs more affordable, and accelerate India’s clean energy transition—directly supporting the vision of a sustainable and prosperous future.” – Meyyappan Nagappan, Partner, Trilegal

Key Summary Points from the report –

• India’s Clean Energy Ambition: India is targeting 500 GW of renewable energy capacity and 30% EV penetration by 2030, creating an unprecedented demand for advanced energy storage solutions.
• A $19.5 Billion Market Opportunity: Global battery demand will triple by 2030, and India’s domestic demand is projected to reach 127 GWh. Capturing 13% of the global battery market could unlock an annual opportunity worth $19.5 billion for Indian manufacturers.
• Current Challenges: Import Dependence & Policy Gaps: Today, almost all advanced battery cells are imported, with China supplying 63% of India’s Li-ion cells. This dependence risks energy security and trade deficits, worsened by a distorted customs duty structure that penalizes emerging technologies like sodium-ion.
• The Key Ask: Level the Playing Field: We urge the government to i) Align customs duty for all advanced battery technologies to 5% from 15%, similar to the customs duty rates for lithium-ion batteries; and ii) further reduce GST on ACC batteries from 18% to 5%, distinguishing them from outdated lead-acid batteries and fixing the inverted duty structure where such batteries are used in the EV industry.
• The Impact: Jobs, Security, and Growth – These reforms will i) Boost Make in India and attract investments across diverse technologies; ii) enhance energy security by leveraging India’s abundant sodium resources; and iii) create jobs (90–180 per GWh), lower battery costs by up to 20%, accelerate EV adoption, and generate additional income tax revenue.