In a significant boost to India's advanced battery manufacturing sector, the Ministry of Heavy Industries (MHI), Government of India, has signed a Programme Agreement with Reliance New Energy Battery Limited. The agreement, formalised on February 17, 2025, awards the company a 10 Gigawatt Hour (GWh) Advanced Chemistry Cell (ACC) manufacturing capacity under the Production Linked Incentive (PLI) Scheme.

This agreement follows a globally competitive tender process, making Reliance New Energy Battery Limited eligible for incentives under India's ₹18,100 crore PLI ACC scheme. It is a major step towards strengthening the country’s battery production capabilities, particularly for electric vehicles (EVs) and renewable energy storage.

Advancing Towards 50 GWh Capacity Target

The PLI ACC Scheme was approved by the Union Cabinet in May 2021 with a total financial outlay of ₹18,100 crore, targeting a manufacturing capacity of 50 GWh. With the latest agreement, a cumulative 40 GWh capacity has been allocated to four beneficiary firms.

In the first round of bidding conducted in March 2022, three firms were granted a total capacity of 30 GWh. Program agreements for those allocations were signed in July 2022. The latest addition of Reliance New Energy Battery Limited further strengthens India's push towards its 50 GWh target.

Promoting Innovation and Cost-Competitive Manufacturing

Senior officials from the Ministry of Heavy Industries highlighted that the PLI ACC Scheme is designed to promote local value addition while ensuring that battery production costs in India remain competitive on a global scale. The scheme provides beneficiary firms with the flexibility to adopt the most advanced and suitable technologies, enabling them to establish state-of-the-art ACC manufacturing facilities. This will primarily support the EV and renewable energy storage sectors, helping India reduce its reliance on battery imports.

Budgetary Support for Domestic Battery Manufacturing

Further reinforcing the government’s commitment to advanced battery production, the Union Budget for FY 2025-26 introduced strategic measures aimed at accelerating domestic battery manufacturing. Among the key initiatives, 35 additional capital goods required for EV battery production were exempted from Basic Customs Duty (BCD). This move is expected to significantly enhance lithium-ion battery manufacturing capabilities within India.

The budget's emphasis on strengthening domestic manufacturing and increasing value addition aligns with India’s broader vision of establishing a robust and self-reliant advanced battery ecosystem.

Towards Sustainable and Self-Reliant Manufacturing

The Ministry of Heavy Industries remains focused on fostering innovation, strengthening the domestic supply chain, and attracting significant Foreign Direct Investment (FDI). These efforts are essential in advancing India’s strategic goal of sustainable development and self-reliance in battery technology.

This initiative by the Government of India has served as a catalyst for Indian cell manufacturers to set up state-of-the-art cell production facilities, reinforcing the nation’s leadership in clean energy technology and green mobility.