The government on Tuesday said that the first production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage will see commercial production starting from January 2024.
In May 2021, the government approved the PLI scheme for manufacturing ACC batteries at an estimated outlay of ₹18,100 crore.
Speaking at the SIAM annual convention here, Mahendra Nath Pandey, Minister of Heavy Industries, said, “In December this year or by January next year, we will see the start of the manufacturing of ACC batteries in the country. India’s commitment to achieving net-zero carbon emissions by 2070 and reducing one-billion tonnes of carbon emissions by 2030 aligns with the ambitious Amrit Kal: Vision 2047.”
He also announced that the government has extended the PLI scheme by another year to enable the auto industry reap benefits of the incentives being provided for manufacturing advanced automotive technologies.
ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. These have major applications in the electric vehicles (EVs), maintaining grid stability, solar rooftop, consumer electronics and many more.
Demand for ACCs
All the demand for ACCs is currently being met through imports in India.
Pandey said the government has been coming up with various policies like PLI and FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) to support the automobile industry. He noted that the ₹25,938-crore PLI scheme for the auto sector has been received well by the industry.
Speaking at the session, Vinod Aggarwal, President, SIAM, and MD & CEO of Volvo Eicher Commercial Vehicles, said that over the past two years, India has witnessed remarkable growth, with the industry’s current size standing at ₹12.46-lakh crore, including exports worth ₹3-lakh crore.
“The six pillars of sustainability on which the auto industry and SIAM are currently focussing with close association with government — Javik Pahal (biofuel), Vidyutikaran (electrification), Gas Gatisheelta (gaseous fuels), Harit Hydrogen (green hydrogen), Chakriyata (recycling) and finally Surakshit Safar (safe journey). The industry is also progressing in increasing its localisation content,” he added.