India’s Indigenous Production of Lithium Batteries Gets Boost Under PLI ACC Scheme

India's self-reliance in lithium battery manufacturing is progressing under the Production Linked Incentive (PLI) Advanced Chemistry Cell (ACC) scheme. This initiative, introduced to reduce import dependency and develop core battery technology in the country, is significantly enhancing domestic production capabilities.

PLI ACC Scheme Powers Domestic Battery Manufacturing

Launched in May 2021 with a total outlay of ₹18,100 crore, the PLI ACC scheme targets creating 50 GWh of battery manufacturing capacity. The scheme supports a 5-year incentive plan following a 2-year gestation period. As of now, 40 GWh capacity has been allocated to 4 beneficiary firms through 2 selection rounds. This capacity is end-use agnostic and covers sectors like electric vehicles, consumer electronics, railways, defence and energy storage systems.

40 GWh Allocated, 10 GWh Reserved for Grid Storage

Out of the total 50 GWh, the remaining 10 GWh is assigned specifically for Grid Scale Stationary Storage (GSSS) needs. This adds a critical dimension to India’s renewable energy and power management goals by ensuring indigenous battery storage for large-scale energy banking and grid stability.

Read More: India Achieves Historic 100 GW Solar PV Module Manufacturing Capacity Under ALMM!

Strategic Impact on E-Mobility and Energy Sectors

The indigenisation of lithium battery production directly supports India’s electric mobility mission by reducing battery costs. By manufacturing locally, companies can avoid import tariffs and logistical delays, enabling quicker deployment of e-vehicles and energy storage infrastructure across the country.

Beneficiaries and Industrial Participation

4 companies have received the 40 GWh capacity under the scheme's initial phases. This reflects robust industry interest and potential for technology localisation. These firms are expected to build and operate manufacturing plants that align with evolving global standards in battery technology.

Conclusion

The Government of India’s focused efforts via the PLI ACC scheme are set to transform the lithium battery ecosystem. With significant capacity allocations and upfront investments, the strategy aligns with broader goals of energy independence, sustainable mobility, and technological sovereignty.

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