India Strengthens Advanced Battery Manufacturing with PLI Agreement

New Delhi, Feb 19 (KNN) In a significant boost to India’s advanced battery manufacturing sector, the Ministry of Heavy Industries (MHI) has signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited, under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC).

This agreement grants Reliance New Energy Battery Limited a 10 GWh ACC capacity, making it eligible for incentives under India’s Rs 18,100 crore PLI ACC scheme.

The contract was awarded following a competitive global tender, marking a milestone in the "National Programme on Advanced Chemistry Cell (ACC) Battery Storage," which aims to achieve a total manufacturing capacity of 50 GWh.

With this signing, the cumulative capacity awarded under the scheme now stands at 40 GWh across four selected beneficiaries. In the first round of bidding in March 2022, three firms secured 30 GWh capacity, with agreements signed in July 2022.

Senior officials fr0m MHI highlighted that the PLI-ACC Scheme is designed to enhance local value addition and ensure globally competitive battery production costs.

The initiative allows beneficiary firms the flexibility to adopt suitable technologies and inputs to establish cutting-edge ACC manufacturing facilities, primarily benefiting the electric vehicle (EV) and renewable energy storage sectors.

Complementing the PLI-ACC scheme, the Union Budget for FY2025-26 introduced transformative measures to accelerate domestic battery manufacturing.

Notably, the Budget exempted 35 additional Capital Goods for EV battery production fr0m Basic Customs Duty (BCD), supporting lithium-ion battery production in India.

India’s commitment to self-reliance is evident, with over 10 companies already investing in 100+ GWh additional battery capacity beyond PLI beneficiaries.

The government remains focused on fostering innovation, strengthening domestic supply chains, and attracting foreign investments, positioning India as a global leader in advanced battery manufacturing.

(KNN Bureau)