Reliance Industries’ Subsidiary Signs PLI ACC Agreement for 10 GWh Capacity

In a significant boost to India’s advanced battery manufacturing sector, the Ministry of Heavy Industries (MHI), Government of India, signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited, under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) on February 17, 2025.

Details of the Agreement 

This agreement grants Reliance New Energy a manufacturing capacity of 10 GWh under the PLI ACC scheme, which has an outlay of ₹18,100 crore aimed at developing a total capacity of 50 GWh. The selection followed a competitive global bidding process and marks another milestone in the implementation of the National Programme on Advanced Chemistry Cell (ACC) Battery Storage.

With this agreement, the total awarded capacity under the PLI ACC scheme now stands at 40 GWh, out of the targeted 50 GWh. In the first round of bidding conducted in March 2022, three firms were awarded a combined 30 GWh, with agreements signed in July 2022.

The scheme is technology-agnostic, allowing beneficiary firms the flexibility to choose the most suitable technology and inputs to establish world-class ACC manufacturing facilities. The initiative primarily supports India’s electric vehicle (EV) and renewable energy storage sectors, ensuring that battery manufacturing in the country remains globally competitive.

Policy Support for Battery Manufacturing and E-Mobility

In addition to the PLI ACC scheme, the Union Budget for FY2025-26 introduced key policy measures to further accelerate battery manufacturing in India. One of the major initiatives was the exemption of 35 additional capital goods used for EV battery manufacturing from Basic Customs Duty (BCD). This move is expected to lower production costs and boost the domestic manufacturing of lithium-ion batteries.

These policy interventions align with India’s broader vision of strengthening domestic production capabilities and achieving self-reliance in advanced battery technology. The government’s push for local value addition not only fosters innovation but also attracts significant foreign direct investment (FDI) into the battery manufacturing sector.

Driving India’s Green Energy Transition

The Ministry of Heavy Industries remains committed to fostering an environment that supports advanced battery manufacturing, strengthens domestic supply chains, and promotes sustainable energy solutions.

The PLI ACC scheme has already acted as a catalyst, with over 10 companies initiating plans to set up additional cell manufacturing facilities with a cumulative capacity of over 100 GWh. This initiative is expected to play a crucial role in India’s transition to a greener future by bolstering energy storage infrastructure and supporting the rapid expansion of the e-mobility ecosystem.

Conclusion

The PLI ACC scheme can be a game-changer for India’s battery manufacturing sector, driving innovation, self-reliance, and growth in e-mobility and renewable energy. With strong policy support, India is set to become a global hub for advanced battery production.

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