ACC Battery PLI Scheme Faces Hurdles in Domestic Manufacturing Push

Advanced Chemistry Cell (ACC)
• New-age batteries (mainly lithium-ion)
• High energy density, longer life
• Used in EVs and grid storage

Lead-acid Battery
• Old technology
• Low energy density
• Shorter life
• Used in cars and inverters

Scheme
Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage

Ministry
Ministry of Heavy Industries

Objective
• Domestic battery cell manufacturing
• Reduce imports
• Support EV and renewable energy

Financial Outlay
₹18,100 crore

Manufacturing Target
50 GWh ACC battery cell capacity

Eligibility Conditions
• Minimum investment: ₹1,100 crore
• Local value addition: 25% (2 years) → 60% (5 years)

Progress / Achievement
• Bids awarded for 50 GWh
• ~30 GWh effectively allocated
• Limited commercial production started

Key Issues
• Technology dependence
• Import of critical minerals
• Skilled manpower and ecosystem gaps

PYQ – 2024 ( Ans – D )
PYQ – 2025 ( Ans – C )
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ACC Battery PLI Scheme Faces Hurdles in Domestic Manufacturing Push

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