The Ministry of Heavy Industries (MHI) signed a Programme Agreement on Tuesday with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited, under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC). The agreement grants Reliance New Energy Battery Limited a 10 GWh ACC manufacturing capacity, making it eligible for incentives under India’s ₹18,100 crore PLI ACC scheme.

The PLI ACC scheme was approved by the Cabinet in May 2021 with an outlay of ₹18,100 crore to establish a total manufacturing capacity of 50 GWh. With this latest agreement, a cumulative capacity of 40 GWh has now been allocated to four companies. In the first round of bidding conducted in March 2022, three firms were awarded a total capacity of 30 GWh, with Programme Agreements signed in July 2022.

According to MHI officials, the PLI ACC scheme aims to enhance local value addition and ensure competitive battery manufacturing costs in India. The scheme allows participating firms to choose suitable technologies and inputs for setting up advanced ACC manufacturing facilities, catering primarily to the electric vehicle and renewable energy storage sectors.

The Union Budget for FY2025-26 introduced measures to support domestic battery manufacturing, including exemptions on Basic Customs Duty (BCD) for 35 additional capital goods used in EV battery production. These initiatives are expected to boost lithium-ion battery production and strengthen the domestic supply chain.

The Ministry of Heavy Industries remains focused on fostering innovation, attracting foreign investment, and supporting the establishment of a self-sufficient advanced battery ecosystem. Beyond the PLI beneficiaries, more than ten companies are setting up additional battery manufacturing facilities, contributing to the sector’s expansion.