Parliament Question: Indigenous Lithium-Ion Battery Manufacturing and Energy Storage Initiatives

**Executive Summary** This document is the response by the Minister of Heavy Industries, SH. H.D. KUMARASWAMY, to Starred Question No. 126 in Lok Sabha on December 9, 2025, regarding indigenous lithium-ion battery manufacturing and energy storage initiatives. It details the government's initiatives under the ACC-PLI scheme, the projected demand for lithium-ion batteries, and the development of safety standards. The document references data up to August 2022 and projects up to 2030. **Key Points / Main Content** * **ACC-PLI Scheme:** * The Ministry of Heavy Industries is administering the Production Linked Incentive (PLI) scheme, "National Programme on Advanced Chemistry Cell (ACC) Battery Storage," approved in May 2021 with an outlay of ₹18,100 crore. * The scheme aims to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity, with 10 GWh earmarked for Grid Scale Stationary Storage (GSSS) applications. * 40 GWh capacity has been awarded to four beneficiary firms. * The projected and current production capacities of beneficiary firms under the PLI ACC scheme are as follows: * ACC Energy Storage Pvt. Ltd.: 5 GWh (Projected), 0 GWh (Current) * Ola Cell Technologies Pvt. Ltd.: 20 GWh (Projected), 1 GWh (Current) * Reliance New Energy Battery Storage Ltd.: 5 GWh (Projected), 0 GWh (Current) * Reliance New Energy Battery Ltd.: 10 GWh (Projected), 0 GWh (Current) * **Projected Demand:** * As per the NITI Aayog report, the projected annual demand for lithium-ion batteries is expected to reach about 210 GWh by 2030 under the optimistic scenario. * The government is supporting the establishment of 50 GWh ACC capacity under the PLI ACC Scheme. * At least 10 manufacturers have announced a cumulative capacity of about 178 GWh in the country over the next five years, in addition to the PLI ACC scheme applicants. * **Safety Standards:** * Bureau of Indian Standards (BIS) has published the safety standards, prescribing safety requirements and test protocols for lithium-ion batteries. * The Ministry of Environment, Forest and Climate Change (MOEFCC) has notified Battery Waste Management Rules, 2022, dated 22nd August 2022 for environmental factors. * The safety standards published by BIS include: * IS 18237: 2023: Safety of Primary and Secondary Lithium Cells and Batteries during Transport. * IS 16893 (Part 2) :2018: Secondary lithium - Ion cells for the propulsion of electric road vehicles: Part 2 reliability and abuse testing. * IS 16893 2018 (Part 3): Secondary Lithium - Ion Cells for the Propulsion of Electric Road Vehicles Part 3 Safety Requirements. * IS 16805: 2018: Secondary Cells and Batteries Containing Alkaline or Other Non-Acid Electrolytes – Safety Requirements for Secondary Lithium Cells and Batteries, for use in Industrial Applications. * IS 16046 (Part 2) :2018: Secondary Cells and Batteries containing Alkaline or other Non-Acid Electrolytes – Safety Requirements for portable sealed secondary cells and for batteries made from them for use in portable applications Part 2 Lithium systems. **Impact Analysis** **Beneficiary Firms under PLI ACC Scheme (ACC Energy Storage Pvt. Ltd., Ola Cell Technologies Pvt. Ltd., Reliance New Energy Battery Storage Ltd., Reliance New Energy Battery Ltd.)** * **Impact:** Need to meet projected production capacity targets as per the PLI ACC scheme. * **Action Required:** Ramp up production to meet projected capacities of the PLI ACC scheme and comply with scheme guidelines. **Lithium-ion Battery Manufacturers:** * **Impact:** Must adhere to safety standards published by BIS and the Battery Waste Management Rules, 2022, notified by MOEFCC. * **Action Required:** Implement necessary measures to comply with BIS safety standards and MOEFCC's Battery Waste Management Rules, 2022. **Ministry of Heavy Industries:** * **Impact:** Responsible for administering and monitoring the ACC-PLI scheme. * **Action Required:** Continue to administer the PLI scheme and support the establishment of domestic ACC manufacturing capacity. **NITI Aayog:** * **Impact:** Their report on "Advanced Chemistry Cell Battery Reuse and Recycling in India" informs the projected demand for lithium-ion batteries. * **Action Required:** No immediate action specified in the document. **Bureau of Indian Standards (BIS):** * **Impact:** Their published safety standards will be the benchmark for lithium-ion battery safety in India. * **Action Required:** Continue to develop and update safety standards for lithium-ion batteries. **Ministry of Environment, Forest and Climate Change (MOEFCC):** * **Impact:** The Battery Waste Management Rules, 2022, set the guidelines for environmental protection in the battery sector. * **Action Required:** Enforce the Battery Waste Management Rules, 2022.

Key Entities Referenced