The Ministry of Heavy Industries (MHI) announced the receipt of seven bids in response to their tender under the Production Linked Incentive (PLI) scheme for the development of ten GWh (gigawatt-hour) Advanced Chemistry Cell (ACC) manufacturing units. The bids collectively represent a capacity of 70 GWh, which is sevenfold the intended allocation.
The bidders for the tender include Amara Raja Advanced Cell Tech, Reliance Industries, JSW Neo Energy, Lucas TVS, Waaree Energies, ACME Cleantech Solutions, and Anvi Power Industries. They aim to collectively establish a robust production capability for ACCs, pivotal in applications such as electric vehicles, renewable energy systems, consumer electronics, and power backup solutions.
The request for proposals was issued by MHI in January, initiating the process to identify and select suitable manufacturers under the PLI scheme, which was designed to enhance India’s ACC manufacturing infrastructure. The scheme is supported by a budget of ₹3,620 crore to facilitate the establishment of ten GWh of production capacity.
The government’s commitment to boosting the ACC sector was underscored in May 2021, when the cabinet sanctioned the technology-neutral PLI Scheme as part of the ‘National Programme on ACC Battery Storage’. The program aims to catalyze the setup of 50 GWh of ACC capacity with an allocation of ₹18,100 crore.
The inaugural round of ACC PLI bidding concluded in March 2022, with three firms securing allocations amounting to a total of thirty GWh. Contracts with these companies were finalized by July 2022.
As reported by money control, and according to a report from the Confederation of Indian Industry (CII), the demand for advanced chemistry batteries in India is projected to surge from 20 GWh in 2022 to approximately 220 GWh by 2030, growing at an annual rate of about fifty percent. The growth is anticipated to be driven by the expanding domestic production of batteries and a strong local supply chain.
