**Summary:**
In response to a parliamentary inquiry regarding the indigenous production of lithium batteries for electric vehicles (e-vehicles), the Ministry of Heavy Industries has confirmed the implementation of the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage. Approved in May 2021 under the "National Programme on Advanced Chemistry Cell ACC Battery Storage," the scheme has an outlay of Rs. 18,100 Crore and targets a production capacity of 50 GWh over a period of 5 years, following a 2-year gestation period. The primary objective of the PLI ACC scheme is to bolster domestic cell production, thereby reducing import dependence and lowering manufacturing costs. As of August 2025, 40 GWh of ACC capacity has been allocated to four beneficiary firms through two rounds of bidding. This capacity is end-use agnostic, allowing for applications across various sectors, including e-vehicles, stationary energy storage systems, consumer electronics, rail, and defense. An additional 10 GWh capacity has been specifically designated for Grid Scale Stationary Storage (GSSS) applications.
Key Entities Referenced
Ministry of Heavy Industries: A ministry in the Government of India responsible for policies related to the heavy industry sector.
Lithium batteries: Rechargeable batteries using lithium, especially for electric vehicles.
PLI ACC scheme: Production Linked Incentive scheme for Advanced Chemistry Cell (ACC) battery storage.
National Programme on Advanced Chemistry Cell ACC Battery Storage: A program by the Government of India to promote domestic manufacturing of advanced chemistry cell batteries.
Electric Vehicles: Vehicles powered by electricity.
Rs. 18,100 Crore: The financial outlay for the PLI ACC scheme.
Shri Bhupathiraju Srinivasa Varma: Minister of State for Heavy Industries
Grid Scale Stationary Storage GSSS: Stationary storage system to store energy from grid
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 4164
ANSWERED ON 19.08.2025
INDIGENOUS PRODUCTION OF LITHIUM BATTERIES
4164. MS. S JOTHIMANI:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) whether the Government has any plan to manufacture Lithium batteries for e-vehicles
indigenously to reduce dependence on imports;
(b) if so, the details of the scheme or plan including the timeline for its implementation; and
(c) if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) & (b): The Government of India has approved the PLI ACC scheme under "National
Programme on Advanced Chemistry Cell (ACC) Battery Storage" in May 2021, with an outlay
of Rs. 18,100 Crore for 50 GWh capacity for a period of 5 years after gestation period of 2
years. The PLI ACC scheme aims to enhance domestic cell production, reducing reliance on
imports and lowering the overall costs of cell manufacturing.
Out of 50 GWh ACC capacity, 40 GWh ACC capacity has already been awarded in two
rounds to four beneficiary firms. The 40 GWh Capacity is end-use agnostic and can be utilized
for any application, including e-vehicles and Stationary Energy Storage Systems apart from
consumer electronics, rail, defence, etc. Further, 10 GWh capacity has been earmarked for
Grid Scale Stationary Storage (GSSS) applications.
(c): Does not arise.
***********