10+ companies are setting up 100+ GWh capacity facility
In a major step forward for India’s advanced battery manufacturing sector, the Ministry of Heavy Industries (MHI) has signed a Programme Agreement with Reliance New Energy Battery Limited to produce 10 GWh ACC capacity for making battery under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC).
This agreement, signed 17 Feb 2025, awards Reliance New Energy Battery Limited a 10 GWh ACC capacity, following a competitive global tender process and makes it eligible to receive incentives under India’s PLI ACC scheme.
This signing is another critical milestone in the implementation of the technology agnostic PLI Scheme on the “National Programme on Advanced Chemistry Cell (ACC) Battery Storage,” approved by the Cabinet in May 2021 with a total outlay of Rs.18,100 crore aimed at achieving a total manufacturing capacity of 50 GWh.
With this signing, a cumulative capacity of 40 GWh has been awarded to four selected beneficiary firms out of 50 GWh capacity. In the first round of bidding conducted in March 2022, three beneficiary firms were allocated a total capacity of 30 GWh, and the Programme Agreements for that round were signed in July 2022.
The scheme allows the beneficiary firm the flexibility to adopt the most suitable technology and associated inputs for establishing state-of-the-art ACC manufacturing facilities, thereby supporting mainly the EV and renewable energy storage sectors.
In tandem with the PLI ACC scheme, the Union Budget for FY2025-26 introduced several transformative measures aimed at accelerating domestic battery manufacturing and supporting the growth of the e-mobility ecosystem in the country.
Notably, the Budget exempted 35 additional Capital Goods for EV battery manufacturing from Basic Customs Duty (BCD), a targeted initiative designed to boost the production of lithium-ion batteries within India. Moreover, its emphasis on reinforcing domestic manufacturing and promoting value addition, further underscores vision of establishing a robust, self-reliant advanced battery ecosystem.
The MHI remains committed to creating an enabling environment for innovation, fostering a robust domestic supply chain, and attracting significant Foreign Direct Investment—all crucial elements in advancing India’s strategic vision for sustainable development and self-reliance.
This initiative of Government has acted as a catalyst for Indian cell manufacturers to setup cell manufacturing facilities. Apart from the PLI beneficiary, 10+ companies have already started setting up 100+ GWh additional capacity.
Reliance New Energy Battery Limited is a subsidiary of Reliance Industries Limited. Fiinews.com
