India’s top government policy think tank – Niti Ayog recently announced the release of a draft battery swap policy to advance the country’s electric mobility sector. The Battery Swap Policy was originally announced during the 2022 Union Budget in February this year. And with the release of the updated proposal, Niti Aayog is now seeking feedback from stakeholders.
The nodal agency said the proposed policy aims to promote battery swapping using Advanced Chemistry Cell (ACC) batteries to insulate battery prices from the initial purchase costs of electric vehicles. It also intends to generate unique battery codes for ACC batteries covered by this policy.
According to the proposed draft policy, electric cars equipped with interchangeable batteries will be sold without batteries, which will help reduce the initial purchase costs of potential EV buyers. The policy also states that individuals can set up battery swap stations anywhere, but must follow technical, safety and performance regulations.
The draft policy further states that in the first phase of the development of the battery swap network, all metropolitan cities with a population above 40 lakh would be prioritized. Following this, in the second phase of this development, major cities such as state capitals, the headquarters of the union territory and cities with more than 5 lakh population will be encompassed, as per the proposed policy.
Some of the main objectives of the battery exchange policy are:
1. Promote battery swapping with Advanced Chemistry Cell (ACC) batteries to decouple battery costs from upfront EV purchase costs, thereby driving EV adoption.
2. Provide flexibility to EV users by promoting the development of battery swapping as an alternative to charging facilities.
3. Establish principles underlying technical standards that would enable interoperability of components within a battery swapping ecosystem, without hampering market-driven innovation
4. Leverage policy and regulatory levers to reduce risks in the battery swap ecosystem, to unlock access to competitive financing.
5. Encourage partnerships between battery suppliers, battery OEMs and other relevant partners such as insurance/financing, thus encouraging the formation of ecosystems capable of
provide integrated services to end users.
6. Promote better battery life cycle management, including maximizing the use of batteries during their useful life and the recycling of end-of-life batteries.
In order to steer the country towards its goal of net zero carbon emissions by 2070, the Government of India has formulated this draft policy. He also listed three of its main advantages. These advantages include time, space and profitability. Additionally, Battery Swapping creates a level playing field for creative and long-term business models such as “Battery As a Service”.
In February 2022, NITI Aayog organized an inter-ministerial meeting to develop a rigorous and comprehensive battery swap policy framework. NITI Aayog also had an in-depth discussion with a wide range of stakeholders, including battery swap operators, battery manufacturers, automotive OEMs, financial institutions, CSOs, think tanks and other experts. . This policy consultation process will continue until June 5, 2022. Niti Ayog also said the policy intends to raise interoperability standards, with the aim of reducing range anxiety among vehicle customers. electrical.