Cabinet approves National Programme on Advanced Chemistry Cell Battery Storage

- Cabinet approves Rs 18,100 crore Production Linked Incentive Scheme for Advanced Chemistry Cell (ACC) battery manufacturing in India

- Setup 50GWh annual production capacity ACC manufacturing facilities in the country

- Net savings of Rs 2,00,000 crore to Rs 2,50,000 crore on account of oil import bill reduction during the period of the programme

The Cabinet has approved the proposal by Department of Heavy Industry seeking implementation of the Production Linked Incentive (PLI) Scheme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of 50GWh of ACC and 5 GWh of ‘Niche’ ACC. The Cabinet has approved an outlay of Rs 18,100 crore under production-linked incentive scheme. The latest development is welcomed by India Energy Storage Alliance (IESA), premium alliance on energy storage and e-mobility and its member companies. 

Advanced Chemistry Cells are believed to be 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. In the near future, major battery consuming sectors such as consumer electronics, electric vehicles, solar rooftops, electricity grids, etc. are likely to witness strong growth. It is believed that the dominant battery technologies will control some of the world’s largest growth sectors. The program is expected to help the country with a net saving of Rs 2,00,000 crore to Rs 2,50,000 crore on account of oil import bill reduction due to EV adoption as ACCs manufactured under the programme are expected to accelerate EV adoption. 

Chairing the Cabinet briefing, Prakash Javadekar, Union Minister of Heavy Industries and Public Enterprises, said, “The Union Cabinet has taken a big decision to make the dream of Make in India. Everyone knows how much battery storage is important. Today, many things are stuck due to a lack of battery storage. India imports Rs. 20,000 crore of battery equipment from outside. In such a situation, the government has now announced Production Linked Incentive (PLI), due to which the import will be reduced. ACC battery storage will be manufactured in India. To promote the 'Make in India' initiative, National Programme on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract investment of Rs 45,000 crore. This will give a boost to electrical vehicles, electrical mobility in the country. Long-lasting batteries and fast charging batteries are the need of the hour.”

Speaking on the occasion , Dr. Rahul Walawalkar, President, India Energy Storage Alliance (IESA) expresses, 'On behalf of India Energy Storage Alliance and its member companies I would like to thank NITI Aayog team, Department of Heavy Industries (DHI), Prime Minister Narendra Modi, Union Minister Prakash Javadekar, Government officials and the energy storage community for launching this programme. This is a dream come true for IESA team, who has been working hard since 2016 for bringing focus to advanced manufacturing capabilities and believes that India has a potential to become a research and development and manufacturing hub of advanced energy storage technologies. The approval of ACC programme will enable Indian conglomerate to take the first step to become part of the global advanced battery manufacturing ecosystem and attract global technology leaders and investors to invest in India. ACC batteries will be crucial for India’s energy security in coming decade given its role in enabling renewable integration and e-mobility transition. This is high time to make India Aatmanirbhar and reduce dependence on other countries.”