{"id":84034,"date":"2026-01-24T11:09:58","date_gmt":"2026-01-24T05:39:58","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=84034"},"modified":"2026-01-24T11:17:20","modified_gmt":"2026-01-24T05:47:20","slug":"acc-battery-manufacturing","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/acc-battery-manufacturing\/","title":{"rendered":"India\u2019s ACC Battery Manufacturing Push &#8211; Promise and Policy Bottlenecks"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>ACC Battery Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s flagship ACC Battery Manufacturing <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/pli\/\" target=\"_blank\"><span style=\"font-weight: 400;\"><strong>PLI scheme<\/strong><\/span><\/a><span style=\"font-weight: 400;\"> has fallen significantly short of its targets due to delays in capacity creation and technology constraints.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Background: Advanced Chemistry Cells and Their Strategic Importance<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Advanced Chemistry Cells (ACCs) are next-generation battery technologies, such as lithium-ion cells, that power electric vehicles (EVs), renewable energy storage systems, and consumer electronics.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unlike traditional lead-acid batteries, ACCs offer higher energy density, faster charging, and longer lifecycle performance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For India, domestic ACC Battery Manufacturing is strategically important for three reasons.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">First, batteries account for nearly 40% of the cost of electric vehicles, making local production critical for EV affordability.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Second, India is heavily dependent on imports, mainly from China, for lithium-ion cells and battery components.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Third, battery manufacturing is central to India\u2019s clean energy transition and its commitments toward reducing carbon emissions and enhancing energy security.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>The ACC Production Linked Incentive (PLI) Scheme<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ACC-PLI scheme was launched in October 2021 by the Ministry of Heavy Industries to catalyse domestic manufacturing of next-generation battery cells.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With a total financial outlay of Rs. 18,100 crore, the scheme aimed to establish 50 GWh of battery manufacturing capacity by 2026.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the scheme, selected manufacturers were promised incentives linked to actual battery sales, with a maximum subsidy of about Rs. 2,000 per kilowatt-hour.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Companies were required to make a minimum investment of Rs. 1,100 crore and meet phased domestic value-addition targets, 25% within two years and 60% within five years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Beyond capacity creation, the policy intended to develop a complete battery supply chain covering cathodes, anodes, electrolytes, and cell assembly, while also generating over one million jobs.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Current Status and Performance Gap<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite its ambitious design, the scheme\u2019s on-ground performance has been weak.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As of October 2025, only 1.4 GWh of battery cell capacity had been commissioned on time, while 8.6 GWh was under development but delayed. This is far below the original 50 GWh target.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Although bids were invited for the entire capacity, only 30 GWh was finally allotted.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Importantly, none of the selected firms had prior experience in large-scale battery cell manufacturing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As no company has begun commercial battery sales, zero incentives have been disbursed so far, against a targeted Rs. 2,900 crore payout by October 2025.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Job creation has also been minimal, with just over 1,100 jobs generated compared to the projected 1.03 million.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Key Challenges Affecting Implementation<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One major bottleneck is the lack of a mature battery manufacturing ecosystem in India.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Critical inputs such as lithium refining, cathode materials, and specialised machinery remain import-dependent, largely sourced from China.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delays in visa approvals for foreign technical experts, especially Chinese specialists needed for equipment installation, have further slowed plant commissioning.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additionally, strict localisation norms and aggressive installation timelines have posed challenges for companies without prior technical expertise.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Implications for Electric Mobility and Energy Transition<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The EV sector accounts for nearly 70-80% of lithium-ion battery demand in India.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Slower progress in ACC Battery Manufacturing directly affects EV affordability, supply chain resilience, and the pace of clean mobility adoption.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While EV sales continue to grow, the pace has been lower than earlier projections, partly reflecting supply-side constraints in battery availability and pricing.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Continued reliance on imports also exposes India to geopolitical risks and trade disruptions.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Way Forward<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To revive momentum, India needs a more flexible and phased localisation strategy that aligns with existing industrial capabilities.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Facilitating technology partnerships, easing skilled-visa processes, and supporting component-level manufacturing are critical.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Policy recalibration may also be required to encourage participation by experienced manufacturers and align incentives with realistic timelines.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Without such course correction, India\u2019s ambition of becoming a global battery manufacturing hub may remain unfulfilled.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/ambitious-scheme-to-spur-next-gen-battery-manufacturing-in-india-stumbles\/article70543125.ece#:~:text=As%20of%20October%202025%2C%20however,of%2050%20GWh%20by%202026.\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ACC Battery Manufacturing initiative under the PLI scheme faces delays due to technology gaps, localisation norms, and execution challenges.<\/p>\n","protected":false},"author":21,"featured_media":84067,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[4923,60,22,59],"class_list":{"0":"post-84034","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-acc-battery","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/84034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=84034"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/84034\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/84067"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=84034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=84034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=84034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}