Centre Readies Second Round Of Tenders For 20 GWh Advanced Chemistry Cells PLI Scheme, Anticipates Robust Participation

The central government is set to open tenders for the advanced chemistry cells (ACC) production-linked incentive (PLI) scheme with a 20-Gigawatt-hour (GWh) capacity by December.

As reported by Livemint, this initiative provides another chance for applicants who could not qualify initially to benefit from incentives for establishing battery storage capacity in India.

The Ministry of Heavy Industries is expected to finalise consultations with the Ministry of New and Renewable Energy, after which the application process for new bids will commence.

In the first round, Ola Electric, Reliance New Energy, and Rajesh Exports secured incentives for lithium-ion and sodium-ion cell manufacturing, committing a total investment of Rs 27,000 crore.

However, a 20 GWh capacity initially awarded to Hyundai was later deemed invalid, prompting a new round of bidding.

For the upcoming round, the criteria around localisation of cell manufacturing will likely not be relaxed, starting at 25 per cent in the first year and increasing to 60 per cent in the fifth year.

The government anticipates increased participation, with over 15 applicants.

Additionally, the central government is considering additional incentives for a new PLI scheme targeting niche chemistries, with a 5 GWh capacity to be approved for incentives next year.

Suzuki Motor Co. and Tata Motors may participate in the second phase of bidding, depending on changes in criteria.

The ACC PLI scheme may attract global lithium-ion battery firms like Panasonic, Samsung, and LG Chem, along with domestic players like Amara Raja and Exide.

India currently relies on foreign markets for lithium-ion cells due to the absence of local facilities.

The earlier ACC PLI scheme received 10 bids from firms with a manufacturing capacity of 128 GWh.