India Accelerates Battery Manufacturing with Reliance New Energy Under PLI ACC Scheme
In a major boost to India’s battery manufacturing sector, the Ministry of Heavy Industries (MHI) has signed a Programme Agreement with Reliance New Energy Battery Limited, awarding it a 10 GWh capacity under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC). This agreement, signed on February 17, 2025, marks another milestone in India’s efforts to strengthen its domestic battery production and reduce dependence on imports.
The PLI ACC scheme, launched in May 2021 with a total outlay of ₹18,100 crore, aims to establish a 50 GWh advanced battery manufacturing capacity. With this latest signing, 40 GWh capacity has been allocated across four selected firms. Earlier, in March 2022, three companies received 30 GWh under the scheme, with agreements formalized in July 2022.
Officials at the signing emphasized that the PLI ACC Scheme ensures cost-competitive and technology-agnostic battery manufacturing, benefiting India’s EV and renewable energy storage sectors. Additionally, the Union Budget FY2025-26 introduced measures such as Basic Customs Duty (BCD) exemption on 35 Capital Goods for EV battery production, further supporting lithium-ion battery manufacturing in India.
This initiative is driving India’s self-reliance in battery technology, with over 10 companies independently setting up 100+ GWh additional capacity beyond the PLI scheme. The government’s vision is to establish a robust domestic supply chain, attract foreign direct investment (FDI), and propel India’s green energy transition.
Source: PIB
