The Indian government has taken action against two major companies that import lithium batteries into the country and is looking into a third company. This decision comes as a response to the increasing sale of poor-quality power banks from China in India. Many of these power banks claim to have a certain capacity, but they actually hold only about 50-60% of what the manufacturers advertise.
Indian companies are buying these subpar batteries at low prices from Chinese suppliers, which allows them to sell cheaper products and compete unfairly in the market. This not only affects healthy competition but also misleads customers regarding safety and performance.
Earlier this month, the Bureau of Indian Standards (BIS) canceled the registrations of two Chinese battery suppliers, Guangdong Cvasun New Energy Technology and Ganzhou Novel Battery Technology. Together, these companies supplied more than half of the lithium cells used in India. A third company, Ganzhou TaoYuan New Energy, is currently being investigated, according to industry sources.
The crackdown on these suppliers followed random tests conducted by authorities, which found that most of the power banks did not meet their advertised capacities. For example, some power banks claiming to have a capacity of 10,000 milliampere-hours (mAh) actually only had 4,000 to 5,000 mAh.
These companies had been sending a limited number of high-quality samples to the BIS to prove that their products met the necessary standards and to get official approval, allowing them to market their batteries as 10,000 mAh. However, they were often using these approvals to sell lower-quality batteries to brands in India. The price difference could be as much as 25%, meaning that consumers may be unknowingly paying for inferior products.
The lower import prices of these batteries have driven down the prices of power banks sold by lesser-known brands in India. While a quality 10,000 mAh power bank from well-known brands can cost over Rs 1,000, many cheaper options are available for under Rs 600, which raises concerns about their actual performance.
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