Cabinet approves PLI scheme for ACC battery storage

The PLI scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ is for achieving manufacturing capacity of 50 GWh of ACC and 5 GWh of ‘Niche’ ACC with an outlay of ₹18,100 crores.

The Union Cabinet has approved the proposal of the Department of Heavy Industry for implementation of the Production Linked Incentive (PLI) Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of 50 GWh of ACC and 5 GWh of “Niche” ACC with an outlay of ₹18,100 crores.

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. The consumer electronics, electric vehicles, advanced electricity grids, solar rooftop etc, which are major battery consuming sectors are expected to achieve robust growth in the coming years. It is expected that the dominant battery technologies will control some of the world’s largest growth sectors.

Several companies have already started investing in battery packs. Though the capacities of these facilities are too small when compared to global averages, there still is a negligible investment in manufacturing, along with value addition of ACCs in India. All the demand for the ACCs is currently being met through imports in India. The National Programme on ACC battery storage will reduce import dependence. It will also support the Atmanirbhar Bharat initiative. ACC battery storage manufacturers will be selected through a transparent competitive bidding process. The manufacturing facility would have to be commissioned within a period of two years. The incentive will be disbursed thereafter over a period of five years.

The incentive amount will increase with increased specific energy density and cycles and increased local value addition. Each selected ACC battery storage manufacturer would have to commit to set-up an ACC manufacturing facility of a minimum 5 GWh capacity and ensure a minimum 60 percent domestic value addition at the project level within five years. Furthermore, the beneficiary firms have to achieve a domestic value addition of at least 25 percent and incur the mandatory investment of ₹225 crores/GWh within two years (at the Mother Unit Level) and raise it to 60 percent domestic value addition within 5 Years, either at mother unit, in-case of an integrated unit, or at the project level, in-case of ‘hub and spoke’ structure.

Source: PIB