India’s Push for Self-reliance in Advanced Chemistry Cells

Advanced Chemistry Cells (ACCs) are the fundamental components of lithium-ion batteries, which are widely used in electric vehicles (EVs) and energy storage solutions. In the context of India’s green initiatives, ACCs play a vital role in transitioning towards a low-carbon economy by enabling the storage of renewable energy and powering electric vehicles, which are essential to reduce greenhouse gas emissions.

Currently, India’s ACC manufacturing capabilities are minimal, leading to heavy reliance on imports to meet the domestic demand for these cells. Recognizing the strategic importance of developing domestic production capabilities for ACCs, the Indian government introduced a Production Linked Incentive (PLI) Scheme on May 12, 2021.

The PLI Scheme, with an outlay of Rs. 18,100 crore over five years, aims to boost local manufacturing of ACCs, reduce import dependency, and make India a significant player in the global ACC market. The scheme targets establishing a competitive ACC battery manufacturing ecosystem with a capacity of 50 GWh, along with an additional 5 GWh dedicated to niche ACC technologies.

Under the scheme, manufacturers setting up production units in India will receive a subsidy linked to the amount of battery capacity they produce and the degree of value addition—a measure of the contribution to the economy made through manufacturing processes—achieved in the country. This subsidy is intended to incentivize production, encourage technology transfer, attract investments in the sector, and enhance cost-competitiveness.

By fostering domestic ACC production, India aims not only to meet its greenhouse gas mitigation targets but also to become a global hub for ACC manufacturing, driving economic growth, and technology innovation within the country.

SRIRAM’s