Rs 18,000 Crore PLI Scheme Set To Power India’s Manufacturing Capacity In Lithium-Ion Batteries

With the Union Cabinet approving the Rs 18,000 crore production-linked incentive (PLI) scheme for advance chemistry cell (ACC) battery manufacturing, several companies are accelerating plans to produce lithium-ion cells in the country taking advantage of the subsidies offered in the scheme, Mint reported.

Last month, the Union Cabinet had approved the Production Linked Incentive (PLI) Scheme for 10 “key sectors”, including telecom, electronics, solar PV and advance chemistry cell (ACC) battery manufacturing.

The PLI scheme for battery sector (ACC) is aimed at primarily incentivising manufacturing of newer technology batteries, starting with Lithium ion. ACC batteries are rechargeable batteries than can be used in consumer electronics, electric vehicles and renewable energy.

The PLI scheme for battery sector (ACC) received an impressive allocation of Rs 18,100 crores.

“ACC battery manufacturing represents one of the largest economic opportunities of the twenty-first century for several global growth sectors, such as consumer electronics, electric vehicles and renewable energy. The PLI scheme for ACC battery will incentivise large domestic and international players in establishing a competitive ACC battery set-up in the country,” Niti Aayog CEO Amitabh Kant said.

Under the PLI scheme for batteries, the subsidy support will be limited to a cumulative 50 GWh of ACC manufacturing capacity in India, with a single beneficiary not allowed more than 20 GWh cell manufacturing facility. Furthermore, to encourage economies of scale, minimum bid may be restricted to 5 GWh capacity, which may be developed in phases over a five-year window.

The implementing agency for the PLI scheme in this sector will be Niti Aayog.

According to the Mint report, Tata Chemicals Ltd is likely to set up a manufacturing facility for lithium-ion cells in Gujarat by seeking incentives under the PLI scheme. The company has acquired land for the proposed facility in the Dholera region of Gujarat.

Exide Batteries and Amara Raja are also looking to diversify into lithium-ion cell manufacturing to under the PLI scheme.