Parliament Question: Promotion of domestic battery manufacturing capacity

GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES RAJYA SABHA UNSTARRED QUESTION NO. 1683 ANSWERED ON 13.02.2026 PROMOTION OF DOMESTIC BATTERY MANUFACTURING CAPACITY

1683. SHRI RAJINDER GUPTA:

Will the Minister of Heavy Industries be pleased to state:

(a) whether Government has undertaken measures to promote domestic battery manufacturing capacity to support electric vehicle adoption in the country;

(b) if so, the details thereof and the progress achieved so far;

(c) the key challenges faced, particularly with regard to raw material security and scaling of battery gigafactories; and

(d) the measures taken or proposed to increase electric vehicle market penetration, including policies relating to battery recycling and circularity? ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a) & (b): The Ministry of Heavy Industries is administering the Production Linked Incentive (PLI) scheme on “National Programme on Advanced Chemistry Cell (ACC) Battery Storage”, approved in May 2021, with an outlay of ₹18,100 Crore to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity.

Out of the total targeted capacity of 50 GWh, 40 GWh capacity has been awarded to four beneficiary firms. The 40 GWh capacity is end-use agnostic and can be utilized for any application, including EVs. As reported by the beneficiary firms, a cumulative investment of ₹3,237 crore and employment generation of 1,118 have been achieved under the scheme, till

31.12.2025.

The beneficiary-wise details of the capacity awarded and the actual capacity installed

are as under:

Capacity Sl. Capacity Awarded Beneficiary firms under PLI ACC Scheme Installed No. (in GWh) (in GWh)

1. ACC Energy Storage Pvt. Ltd. 5 0

2. Ola Cell Technologies Pvt. Ltd. 20 1

3. Reliance New Energy Battery Storage Ltd. 5 0

4. Reliance New Energy Battery Ltd. 10 0 TOTAL 40 1-2-

(c): The beneficiary firms under the PLI ACC scheme are facing several operational and implementation-related challenges, due to the following factors:

1. Limited availability of technology.

2. Skilled manpower gap.

3. Import of critical equipment & machineries.

4. Non-availability of upstream components like Cathode Active Materials (CAM), Anode Active Materials (AAM), Electrolyte etc.

(d): The Ministry of Heavy Industries is implementing following schemes to increase the electric

vehicle market penetration in the country:

1. Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto)

2. Production Linked Incentive (PLI) scheme on National Programme on Advanced Chemistry Cell (ACC) Battery Storage (PLI ACC)

3. PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE)

4. PM e-Bus Sewa-Payment Security Mechanism Scheme (PSM)

5. Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI) For battery recycling and circularity, the Ministry of Environment, Forest and Climate Change, published the Battery Waste Management Rules, 2022 on 24th August, 2022 for environmentally sound management of waste batteries. These rules cover all types of batteries viz. Electric Vehicle batteries, portable batteries, automotive batteries and industrial batteries.

The Ministry of Mines is implementing the National Critical Mineral Mission (NCMM), approved on 29th January, 2025 to secure a long-term sustainable supply of critical minerals and strengthen India’s critical mineral value chain encompassing all stages from mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products.

Further, the Ministry of Mines is implementing Incentive Scheme to promote critical minerals recycling, launched on 2nd October, 2025. Eligible feedstock is e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste and LIB scrap, e.g. catalytic convertors in end-of-life vehicles.

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