Industry Welcomes Cabinet Approval for PLI Scheme for ACC Battery Storage

IESA and its member companies have welcomed the Cabinet’s approval of the PLI Scheme on Advanced Chemistry Cell (ACC) Battery Storage

India Energy Storage Alliance (IESA), India’s leading alliance on energy storage & e-mobility and its member companies have welcomed the Cabinet’s approval on the proposal by the Department of Heavy Industry for implementation of the Production Linked Incentive (PLI) Scheme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of 50 GWh of ACC and 5 GWh of “Niche” ACC with an outlay of Rs 18,100 crore.

ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. Consumer electronics, electric vehicles, advanced electricity grids, solar rooftop, etc. which are major battery consuming sectors are expected to achieve robust growth in the coming years. It is expected that the dominant battery technologies will control some of the world’s largest growth sectors.

Chairing the Cabinet briefing, Union Minister of Heavy Industries & Public Enterprises, Prakash

Javadekar said “The Union Cabinet has taken a big decision to make the dream of Make in India. Everyone knows how much battery storage is important. Today, many things are stuck due to a lack of battery storage. India imports Rs 20,000 crore of battery equipment from outside. In such a situation, the government has now announced Production Linked Incentive (PLI), due to which the import will be reduced. ACC battery storage will be manufactured in India. To promote the ‘Make in India’ initiative, National Programme on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract investment of Rs 45,000 crore. This will give a boost to electrical vehicles, electrical mobility in the country. Long-lasting batteries and fast charging batteries are the need of the hour.”

Welcoming the approval, Dr. Rahul Walawalkar, President, IESA said, “On behalf of India Energy Storage Alliance and its member companies I would like to thank NITI Aayog team, Department of Heavy Industries (DHI), Prime Minister Narendra Modi, Union Minister Prakash Javadekar, Government officials and the energy storage community for launching this programme. This is a dream come true for IESA team, who has been working hard since 2016 for bringing focus to advanced manufacturing capabilities and believes that India has the potential to become an R&D & manufacturing hub of advanced energy storage technologies. 

“The approval of ACC programme will enable Indian conglomerate to take the 1st step to become part of the global advanced battery manufacturing ecosystem and attract global technology leaders and investors to invest in India. ACC batteries will be crucial for India’s energy security in the coming decade given their role in enabling renewable integration and e-mobility transition. This is high time to make India Aatmanirbhar and reduce dependence on other countries.”

Last month, IESA wrote a letter to the PMO requesting to expedite the launch of the Advanced Chemistry Cell – Gigafactory Manufacturing Plan and requesting steps for demand creation. To understand more details about the ACC program, IESA had organized a webinar in Nov’2020 where Niti Aayog had joined along with Industry experts and government representatives and discussed the details about the program, application procedure, eligibility criteria and incentive details.

Vijayanand Samudrala, CEO, Amara Raja Group, a member of the IESA and a technology leader and one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry, said “India is at crucial time and space in the transformative journey to E-Mobility eco-system. Establishing domestic manufacturing capability in the EV battery value chain is a critical and essential enabler towards accelerated adoption of Electric Vehicle mobility in the country. In this context, the PLI scheme for Advanced Chemistry Cells approved by the Union Cabinet for building Giga factories is a welcome step by the Central Government. While this scheme is certain to spur the investments in this sector, there are other challenges to be resolved such as choosing right mix of technology for addressing the unique mobility needs of the country and securing the critical raw material supplies. 

“As a country we are behind the curve on EV battery supply capabilities and with the launch of ACC PLI scheme, the Government is signaling a stable policy framework to help industry players make investment decisions with certainty. I congratulate the IESA team lead by Dr. Walawalkar for playing a pivotal role in bringing together all stakeholders and advocating a balanced framework for the ACC PLI scheme.”

Anant Nahata, MD, Exicom Tele-systems, a leading EV charging infrastructure and Li-ion battery maker of the country said- “The PLI initiative is definitely a step in the right direction for the Battery manufacturing industry. This initiative will augment Li-ion cell manufacturing in India, leading to reduced dependence on cell imports and hence reduced costs. It will help us attain economies of scale while producing globally competent, hi-tech batteries. While the success is heavily dependent on the implementation, this scheme has strong potential to boost production and aid exports while simultaneously providing the right push to EV adoption in India.” Approval for PLI Storage

As per the group, the national programme on Advanced Chemistry Cell (ACC) Battery Storage will reduce import dependence. It will also support the Atmanirbhar Bharat initiative. ACC battery Storage manufacturers will be selected through a transparent competitive bidding process. The manufacturing facility would have to be commissioned within a period of two years. The incentive will be disbursed thereafter over a period of five years.