India Strengthens Renewable Energy Storage with 10 GWh Battery Manufacturing Boost

In a significant move to accelerate India’s renewable energy storage and electric mobility sectors, the Ministry of Heavy Industries (MHI), Government of India, has signed a Programme Agreement with Reliance New Energy Battery Limited under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC). The agreement, finalized on February 17, 2025, grants Reliance 10 GWh of ACC manufacturing capacity, reinforcing India’s push for self-reliance in advanced battery technology.

The agreement is part of the ₹18,100 crore PLI ACC scheme, aimed at developing 50 GWh of battery manufacturing capacity to support clean energy transition and energy security. With this signing, India has now allocated 40 GWh of total capacity to four firms. The first round of bidding in March 2022 had already assigned 30 GWh to three companies, with agreements signed in July 2022.

Boosting India’s Renewable Energy Storage Capabilities

Officials at MHI emphasized that the PLI ACC scheme is a cornerstone in India’s clean energy future, fostering domestic value addition while keeping battery production costs globally competitive. The scheme is technology-agnostic, allowing manufacturers to integrate the latest advancements to enhance energy storage solutions, particularly for renewable energy and electric vehicles (EVs).

To further incentivize domestic battery production, the Union Budget for FY2025-26 introduced duty exemptions on 35 additional Capital Goods for EV battery manufacturing, a move aimed at reducing dependence on imports and bolstering lithium-ion battery production in India.

Accelerating Clean Energy Adoption

The Indian government’s proactive initiatives in battery manufacturing are expected to enhance renewable energy storage infrastructure, ensuring grid stability and higher integration of solar and wind power. The PLI ACC scheme, along with growing foreign and domestic investments, is positioning India as a global hub for sustainable energy storage solutions.

Beyond the PLI beneficiaries, 10+ companies have begun setting up 100+ GWh of additional capacity, reinforcing India’s ambition to establish a robust, self-sufficient battery ecosystem that aligns with its clean energy and net-zero targets.