The energy storage based on lithium-ion batteries will help India to achieve its greenhouse mitigation targets since the basic raw material for production of electric vehicles is lithium and other critical materials.

At present, investments in manufacturing and overall value addition for Advanced Chemistry Cells (ACCs) are negligible in India and almost entire domestic demand of ACCs is still being met through imports.

In order to reduce dependency of imported ACC battery for electric vehicles, the Government approved a Production Linked Incentive (PLI) Scheme for manufacturing of Advance Chemistry Cell (ACC) in the country in 2021.

The total outlay of the scheme is Rs. 18,100 Crore for a period of 5 years. The scheme envisages to establish a competitive ACC battery manufacturing set up in the country (50 GWh). Additionally, 5GWh of niche ACC technologies is also covered under the Scheme. The scheme proposes a production linked subsidy based on applicable subsidy per KWh and percentage of value addition achieved on actual sales made by the manufacturers who set up production units.

This information was given by the Minister of State for Heavy Industries, Krishan Pal Gurjar, in a written reply in Lok Sabha recently.