Key Takeaways
- The Indian government has partnered with Reliance New Energy Battery Limited to enhance battery manufacturing under a ₹18,100 crore Production Linked Incentive scheme.
- The initiative aims to reach 50 GWh of battery manufacturing capacity, with 40 GWh already allocated to four firms.
- New budget provisions encourage domestic battery production, reducing reliance on imports and enhancing India’s renewable energy storage capabilities.
Enhancing India’s Battery Manufacturing Landscape
The Ministry of Heavy Industries (MHI) in India has signed a significant Programme Agreement with Reliance New Energy Battery Limited as part of the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) manufacturing. This agreement, finalized on February 17, 2025, provides Reliance with a manufacturing capacity of 10 GWh, strengthening India’s initiative towards self-sufficiency in advanced battery technology.
This agreement is a component of the broader ₹18,100 crore PLI ACC scheme, which aims to develop 50 GWh of battery manufacturing capacity to facilitate clean energy transitions and enhance energy security throughout India. With this recent signing, total capacity allocation has reached 40 GWh, distributed among four companies, following a previous bidding round in March 2022 that secured 30 GWh for three different firms.
Officials from MHI have underscored the importance of the PLI ACC scheme as a foundational element for India’s ambitions in clean energy. The program encourages domestic value addition while maintaining competitive production costs. Furthermore, it is designed to be technology-neutral, enabling manufacturers to adopt the latest innovations to improve energy storage, particularly in the context of renewable energy sources and electric vehicles (EVs).
Additionally, the Union Budget for FY2025-26 has introduced exemptions on duties for 35 additional capital goods required for EV battery manufacturing. This measure is aimed at reducing the nation’s dependency on imported battery technologies and fostering a robust lithium-ion battery production ecosystem in India.
With proactive government initiatives in battery manufacturing, India is poised to bolster its renewable energy storage infrastructure, ensuring grid stability and facilitating greater integration of solar and wind energy. The PLI ACC scheme, along with increasing investments from both domestic and foreign entities, positions India as a potential global center for sustainable energy storage solutions.
Moreover, alongside the companies benefiting from the PLI scheme, more than 10 other firms are setting up over 100 GWh of additional battery manufacturing capacity. This development reinforces India’s commitment to building a self-sufficient battery ecosystem, aligning with its clean energy objectives and net-zero goals.
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