The Ministry of Heavy Industries (MHI) has witnessed a remarkable surge in interest from industry stakeholders, receiving a total of seven bids under the Production Linked Incentives (PLI) scheme for Advanced Chemistry Cell (ACC) manufacturing. These bids collectively represent a capacity of 70 GWh (gigawatt-hour), marking a substantial seven-fold increase compared to the anticipated manufacturing capacity earmarked for award under the scheme.
In a press statement issued by the Government, the substantial response from the industry was underscored, highlighting that the received bids far surpass the envisaged manufacturing capacity set to be awarded. Among the notable bidders contending for a slice of the ACC manufacturing pie include Amara Raja Advanced Cell Tech, Reliance Industries, JSW Neo Energy, Lucas TVS, Waaree Energies, ACME Cleantech Solutions, and Anvi Power Industries.
The PLI scheme, designed to incentivize ACC manufacturing, forms a critical component of the government’s strategy to fortify the ecosystem for electric mobility and battery storage in India. Advanced Chemistry Cells hold pivotal importance across various applications, including electric vehicles, renewable energy storage, consumer electronics, and power backup systems, owing to their high-capacity and high-efficiency electrochemical energy storage capabilities.
The bidding process was set into motion subsequent to the release of the Request for Proposal (RfP) by MHI in January, inviting bids for the establishment of ACC Manufacturing Units with a proposed manufacturing capacity of 10 GWh and a budgetary outlay of Rs 3,620 crore.
This latest development builds upon the Cabinet’s green light in May 2021 for the technology-agnostic PLI Scheme under the ‘National Programme on ACC Battery Storage’, aimed at achieving a manufacturing capacity of 50 GWh of ACC with an outlay of Rs 18,100 crore. The successful implementation of the first round of the ACC PLI scheme, concluded in March 2022, witnessed three companies being allocated a total capacity of 30 GWh, with program agreements inked in July 2022.
With the burgeoning demand for advanced chemistry batteries in India projected to skyrocket from 20 GWh in 2022 to approximately 220 GWh by 2030, as per a report by the Confederation of Indian Industry, the robust participation in the ACC PLI scheme underscores the industry’s confidence in the growth potential of India’s battery manufacturing sector and the resilience of its local supply chain.