The Department of Heavy Industry would implement the Production Linked Incentive (PLI) Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ to attain a manufacturing capacity of Fifty Giga Watt Hour (GWh) of ACC and 5 GWh of “Niche” ACC with a budget of Rs.18, 100 crores, promote niche and new cell technologies, accelerate Electronic Vehicles adoption, and also facilitate demand creation for battery storage in the country.

Through this scheme, the GoI is planning to reduce import dependence/ import substitution and a net saving on Advanced Chemistry Cells of around Rs.20, 000 crores to Rs.2,50,000 crores every year, to promote research and development to achieve higher specific energy density and cyles in ACC and also increase the domestic value-capture. This scheme will also support the Atmanirbhar Bharat/ Make in India initiative of the government.

What are Advanced Chemistry Cells?

Advanced Chemistry Cells are the new generation of advanced storage technologies that can store electric energy either as chemical energy or as electrochemical energy and then convert it back to electric energy as and when required.

Currently, the demand for Advanced Chemistry Cells is met through imports. It is to be noticed that direct investments of around Rs.45, 000 crores in ACC Battery storage manufacturing projects have already started in India. Though the percentage is small compared to the global investors, we can still achieve our desired targets.

The Advanced Chemistry Cells scheme will be a key factor to reduce India’s Green House Gas (GHG) emissions which in turn will be in line with India’s commitment to combating climate change.

Which battery-consuming sectors are expected to achieve robust growth in the coming years?

  • Consumer electronics 
  • Advanced electricity grids
  • Electric vehicles 
  • Solar rooftop, etc. 

 It is believed that in the coming years the prominent battery technologies will control some of the world’s largest growth sectors.

As per the scheme, the Advanced Chemistry Cells battery storage manufacturers will be selected through a transparent competitive bidding procedure. The manufacturing facility should be commissioned within two years, and the incentive will be disbursed to them for over five years. The incentive amount would increase with an increase in specific energy density & cycles and with increased local value addition.

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