Government Selects Reliance Industries to Set Up 10-GWh ACC Battery Manufacturing Unit

Reliance Industries Ltd (RIL) has been selected to establish a 10-GWh Advanced Chemistry Cell (ACC) battery unit under the government’s Production Linked Incentive (PLI) scheme. The award was based on a quality and cost-based selection (QCBS) mechanism, aimed at boosting domestic battery manufacturing capacity.

ACC batteries are a cutting-edge energy storage technology used in electric vehicles (EVs), renewable energy systems, consumer electronics, and power backup solutions. The PLI scheme is part of the National Programme on ACC battery storage, designed to promote electric mobility and create a robust battery manufacturing ecosystem in India.

The initiative is expected to bolster the country's electric mobility infrastructure and reduce reliance on imports. It focuses on scaling up domestic ACC manufacturing capabilities by establishing large-scale Giga battery plants with an emphasis on domestic value addition. Under the scheme, beneficiary companies must achieve at least 25% domestic value addition initially, with plans to increase this to 60% within five years. Firms are also required to invest ₹225 crore per GWh of committed capacity within two years.

The government has allocated a total of 30 GWh in capacity to three firms so far, leaving 20 GWh available for future allocations. The Ministry of Heavy Industries (MHI) evaluated seven bids, shortlisting six companies for financial evaluation, with Reliance Industries emerging as a key beneficiary. Other bidders included Acme Cleantech Solutions, Amara Raja Advanced Cell Technologies, JSW Neo Energy, and Waaree Energies.

The PLI ACC scheme, which began in March 2022, aims to position India as a global leader in ACC battery manufacturing while reducing import dependence. The Ministry hailed the success of the scheme, noting that it has attracted significant interest from both domestic and global players.

HBL