PROMOTION OF DOMESTIC BATTERY MANUFACTURING CAPACITY

**Executive Summary** 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 to establish domestic Advanced Chemistry Cell manufacturing capacity. Out of the targeted 50 GWh capacity, 40 GWh has been awarded to four 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. **Key Points / Main Content** * **PLI ACC Scheme Details:** * The scheme aims to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity. * An outlay of ₹18,100 Crore has been allocated to the scheme. * 40 GWh capacity has been awarded to four beneficiary firms and the capacity is end-use agnostic. * A cumulative investment of ₹3,237 crore and employment generation of 1,118 have been achieved under the scheme, till 31.12.2025. * **Beneficiary-wise Capacity Awarded and Installed:** * ACC Energy Storage Pvt. Ltd.: Awarded 5 GWh, Installed 0 GWh. * Ola Cell Technologies Pvt. Ltd.: Awarded 20 GWh, Installed 1 GWh. * Reliance New Energy Battery Storage Ltd.: Awarded 5 GWh, Installed 0 GWh. * Reliance New Energy Battery Ltd.: Awarded 10 GWh, Installed 0 GWh. * **Challenges Faced by Beneficiary Firms:** * Limited availability of technology. * Skilled manpower gap. * Import of critical equipment & machineries. * Non-availability of upstream components like Cathode Active Materials (CAM), Anode Active Materials (AAM), Electrolyte etc. * **Other Government Initiatives:** * Ministry of Heavy Industries is implementing additional schemes to boost electric vehicle market penetration, including PLI schemes for Automobile and Auto Components, PM Electric Drive Revolution, PM e-Bus Sewa, and a scheme for promotion of electric passenger cars. * The Ministry of Environment, Forest and Climate Change published Battery Waste Management Rules, 2022. * Ministry of Mines is implementing the National Critical Mineral Mission (NCMM), approved on 29th January, 2025. * Ministry of Mines is implementing Incentive Scheme to promote critical minerals recycling, launched on 2nd October, 2025. **Impact Analysis** **Beneficiary Firms Under PLI ACC Scheme** * **Impact:** Expected to increase domestic battery manufacturing capacity. Currently facing operational and implementation challenges related to technology availability, manpower, imports, and supply chain. * **Action Required:** Need to address operational challenges to meet capacity installation targets by 31.12.2025. **Electric Vehicle Manufacturers** * **Impact:** Potential beneficiaries of increased domestic battery production and other EV promotion schemes. * **Action Required:** Monitor and leverage government schemes to enhance EV manufacturing and sales. **Battery Recycling and Waste Management Sector** * **Impact:** Subject to the Battery Waste Management Rules, 2022, for environmentally sound management of waste batteries. * **Action Required:** Comply with the Battery Waste Management Rules, 2022. **Mineral Exploration and Mining Sector** * **Impact:** The National Critical Mineral Mission (NCMM), approved on 29th January, 2025, and the Incentive Scheme to promote critical minerals recycling will help to secure long-term sustainable supply of critical minerals. * **Action Required:** Comply with the requirements of the National Critical Mineral Mission (NCMM), approved on 29th January, 2025, and the Incentive Scheme to promote critical minerals recycling, launched on 2nd October, 2025.

Key Entities Referenced