India Powers Up: PLI Scheme Drives Battery Revolution

India's Ministry of Heavy Industries collaborates with Reliance New Energy Battery under the PLI scheme, awarding 10 GWh ACC capacity. This move supports local EV and renewable sectors, backed by a Rs 18,100 crore initiative aiming for 50 GWh capacity, bolstered by recent Union Budget measures.

In a significant advancement for India's battery manufacturing sector, the Ministry of Heavy Industries has signed a pivotal agreement with Reliance New Energy Battery Limited. This partnership, under the PLI Scheme for Advanced Chemistry Cells, awards Reliance a substantial 10 GWh capacity, positioning it for incentives within the Rs 18,100 crore national initiative.

The deal marks a critical progression in the technology-agnostic PLI Scheme, part of the National Program on Advanced Chemistry Cell Battery Storage. Initiatives like these aim to reach a 50 GWh manufacturing capacity, with 40 GWh already allocated to key firms. The first bidding, concluded in March 2022, saw 30 GWh awarded, cementing India's strategic push for advanced battery growth.

During the formal ceremony, officials highlighted the PLI-ACC Scheme's role in enhancing local value addition while keeping Indian battery manufacturing globally competitive. The scheme grants companies the flexibility to choose optimal technologies and inputs, significantly benefiting EV and renewable energy storage sectors.

The recent Union Budget for FY2025-26 complements the PLI-ACC scheme by exempting 35 Capital Goods for EV battery production from basic customs duties. These measures are designed to boost the domestic production of lithium-ion batteries, align with India's e-mobility ambitions, and reinforce the domestic manufacturing base.

Overall, the Ministry of Heavy Industries remains dedicated to fostering innovation, building a strong domestic supply chain, and attracting substantial foreign investment. These steps are pivotal in advancing India's strategic goal of sustainable development and self-reliance, serving as a catalyst for setting up additional cell manufacturing facilities across the country.