Battery PLI scheme falls short of 50 GWh target
New Delhi: India's Production Linked Incentive (PLI) initiative for Advanced Chemistry Cell (ACC) batteries has only reached 1.4 gigawatt-hours (GWh) of manufacturing capacity, far below the ambitious 50 GWh goal. No commercial production has commenced thus far, according to a NITI Aayog report analyzing the scheme's impact. The Rs 18,100 crore scheme has progressed slower than expected due to technological hurdles, reliance on imports, and setbacks in building manufacturing facilities.
As of now, only about 1.4 GWh of capacity has been established, with commercial operations yet to begin.The scheme aims to bolster domestic production of advanced batteries for electric vehicles and energy storage, lessening India's reliance on imported battery technologies. By March 2026, cumulative investments had reached Rs 4,570 crore, resulting in 1,245 job creations, though no incentive funds have been disbursed yet because production has not yet begun.The report highlighted that India's limited domestic expertise in advanced battery manufacturing has kept the country hooked on foreign technology and know-how.
The lack of a robust domestic supply chain for key battery components like cathodes, anodes, and minerals like lithium and cobalt has made it tough for manufacturers to meet localization targets. The scheme mandates at least 25% domestic value addition by the end of year two and 60% by year five, but these goals seem hard to reach given current manufacturing capabilities.Weak execution is evident in the meager capacity added so far and the absence of incentive payouts, while slower-than-expected growth in electric vehicle demand has also slowed investment, the report noted.
One beneficiary company was disqualified for falsely claiming their facts. Yet, the assessment kept a positive long-term view, pointing out that building up advanced battery tech takes time before it translates into production. While the outlook remains optimistic, the scheme's true impact will only become apparent over time.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
