Ministry of Heavy Industries (MHI) has received seven bids under the Production Linked Incentives (PLI) scheme for 10 GWh (gigawatt-hour) Advanced Chemistry Cell (ACC) manufacturing. A press statement issued by the Government said the industry response has been overwhelming as bids received is seven times the manufacturing capacity that is to be awarded.
The list of bidders to the tender are Amara Raja Advanced Cell Tech, Reliance Industries, JSW Neo Energy, Lucas TVS, Waaree Energies, ACME Cleantech Solutions and Anvi Power Industries, bidding for a cumulative capacity of 70 GWh.
Back in January, MHI had released Request for Proposal (RfP) for shortlisting and selection of bidders under the PLI Scheme to set up ACC Manufacturing Units. The total manufacturing capacity under the PLI scheme was proposed at 10 Giga Watt Hour (GWh) with a budgetary outlay of Rs 3,620 crore.
Advanced Chemistry Cells (ACCs) refer to high-capacity and high-efficiency electrochemical energy storage cells used in various applications, primarily where battery storage is crucial. Some of the primary uses of Advanced Chemistry Cells include electric vehicles, renewable energy storage, consumer electronics, power backup etc.
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The plan for Advanced Chemistry Cell (ACC) manufacturing aims to strengthen the ecosystem for electric mobility and battery storage in India.
In May 2021, the Cabinet had approved the technology agnostic PLI Scheme on 'National Programme on ACC Battery Storage’ for achieving manufacturing capacity of 50 GWh of ACC with an outlay of Rs 18,100 crore.
The first round of the ACC PLI bidding was concluded in March 2022, and three companies were allocated a total capacity of 30 GWh, and the program agreement with selected companies was signed in July 2022.
The advanced chemistry battery market demand in India is expected to grow from 20 GWh in 2022 to around 220 GWh by 2030 at a compounded annual growth rate of around 50%. This growth is expected to be supported by the thriving local battery manufacturing industry and a robust local supply chain, Confederation of Indian Industry said in a report in August 2023.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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