By 2022, India will require a minimum of 10 GWh of Li-ion cells, with 60 GWh required by 2025 and 120 GWh required by 2030. In this article, we are going to explore how you can start your Lithium Battery Business in-home or commercial storage segment.
Currently, Li-ion cells are imported from China or Taiwan to be assembled into batteries in India, or battery packs are imported completely assembled. These imports will be costly to the economy, given the ambitious intentions to promote electric vehicles. India currently lacks both lithium (the lightest metal) and cobalt sources, as well as lithium-ion battery production skills. The government intends to boost the local manufacture of lithium-ion batteries by offering FAME incentives according to battery chemistry and increasing import taxes. Local Lithium-ion battery manufacturing is projected to reduce the cost of electric vehicles soon.
If you will explore the Indian Market, you will find that there are only a few companies in India that are manufacturing lithium batteries.
This means if you want to venture into this industry then you have a good opportunity to grow in the market.
How to venture into the lithium battery industry as a trader?
Setting up lithium cell manufacturing is very costly also setting up a lithium battery pack manufacturing unit is not so easy. In that case, starting a lithium battery trading business is an easy way to venture into the market.
Now if you want to start a lithium battery trading business, then you need to figure out the following point.
- Market segment of Lithium-ion batteries
- Cost analysis of lithium-ion batteries
- How to develop the market?
The market of lithium-ion batteries in-home or commercial storage segment
This market is separated into two sections: home storage, which has a low power requirement, and industrial & commercial storage, which has a high power requirement.
- When it comes to home storage, power requirements might range from a few hundred watts to a few kilowatts. The power requirement could be as small as powering a fan and a few lights, or it could be as large as powering the entire house.
- The power needed for commercial storage can be greater than 100kW. A hospital, a corporate facility, or a community center could all benefit from commercial power storage.
When it comes to battery storage systems, the majority of them are customized. As a result, it’s critical to comprehend the client’s overall load. The voltage system of the battery storage will be determined based on the load.
Secondly, if you’re interested in home power storage, you’ll need to deal with compact batteries, which are simple to make, carry, and install. Not only that, compared to other industries, you have a considerably larger client base.
The solar industry is also a part of this segment where you can subject your small lithium batteries.
Lithium Battery Range by Inverted Energy for Residential Purpose:
- 48V 50Ah
- 48V 80Ah
- 48V 100Ah
Lithium Battery Range By Inverted Energy for Solar Industry:
- 12.8V 12Ah
- 12.8V 15Ah
- 12.8V 30Ah
- 12.8V 40Ah
- 12.8V 60Ah
- 12.8V 80Ah
- 12.8V 100Ah
- 12.5V 120Ah
In the case of commercial batteries, the size-weight of the batteries will be significant. The shipping and installation will take a long time.
We’re giving you all of this so you can understand this market sector and select which one you want to venture into.
It’s very important to know from where you’ll acquire your clients because you’ll need to design marketing strategies accordingly.
Once you have decided the market segment to venture into, the next step is to do the cost analysis.
- Cost of the battery by manufacturers
- Cost of battery packing
- Cost of transportation
- Cost of installation of battery
Other things you need to know
- GST on lithium batteries
- Subsidy offered by state govt and the central govt on lithium batteries
In the market of lithium batteries, you need to understand the fact that they are costly. So the margin of your profit is very critical. You need to do analyze various factors before deciding how much profit you want. Factors like what type of client you are dealing with. Are the clients you are selling the lithium batteries are they direct users of it or not. Apart from that what is the geographical distance from your warehouse to the client? For how long do you need to hold or store the inventory before it is exported to the client.
These are very important questions you need to answer before deciding your profit margin.
How to acquire clients from your lithium battery business?
Now, let’s move to the most important part of this article, which is how to acquire clients.
If you don’t have clients then you don’t have a business.
In the lithium battery business, you will have 2 types of clients, first who will be the direct user of the battery.
Second those clients who will use the battery for their business model like solar companies. Solar companies will use the lithium batteries in their solar kit which will be further used by the end-user.
- Setup a digital platform
- Run ads on social media
- Organize workshops and webinars
- Explore the businesses that can use lithium batteries to enhance their own business
- Content Development and Marketing
The objective is to increase your reach which will further reflect on your business.
At Inverted Energy, we manufacture lithium batteries across a various range. Form storage to mobility, we have lithium battery solution of every requirement.
If you want to start your business in lithium batteries industry then contact us.