Ola Electric, Hyundai, Reliance and Rajesh Exports selected for the cell manufacturing PLI scheme

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Four companies have been selected for incentive under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. This includes Reliance New Energy Solar Limited; Ola Electric Mobility Private Limited; Hyundai Global Motors Company Limited and Rajesh Exports Limited. These companies will receive incentives under India’s ₹ 18,100 crore programme to boost local battery cell production. Direct investment of around ₹ 45,000 crores will be made by these companies into ACC Battery storage manufacturing projects.

It should be noted that Ola Electric has invested into StoreDot, Reliance into Lithium Werks and Faradion, and Exide into SVOLT to access cell manufacturing technology.

The Government had approved the Production Linked Incentive (PLI) Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for manufacturing capacity of 50 GWh of ACC with a budgetary outlay of ₹ 18,100 crores. 10 companies submitted their bids under the Advanced Chemistry Cell (ACC) Battery Storage Programme.

The manufacturing facility would have to be set up within a period of two years. The incentive will be disbursed thereafter over a period of five years on sale of batteries manufactured in India. The program is designed to be technology agnostic. The beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant & machinery, raw material and other intermediate goods for setting up cell manufacturing facility to cater to any application. According to government estimates, the ACC PLI scheme is expected to translate into net savings of ₹ 2,00,000 crore to ₹ 2,50,000 crore on account of oil import bill during the period of this Programme and increase the share of renewable energy at the national grid level.