What’s ailing India’s battery scheme for EVs? | Explained Premium
The Hindu
Why is there a lack of momentum? How will it affect the domestic battery manufacturing ecosystem?
The story so far: An ambitious ₹18,100 crore scheme to facilitate the manufacture of advanced chemistry cell batteries in India, particularly for Electric Vehicles (EVs), is floundering. The Advanced Chemistry Cell Production Linked Incentive (ACC PLI) had a target of making battery cells worth 50 gigawatt-hour (GWh) by 2025, but only 1.4 GWh has been installed; approximately 8.6 GWh is ‘under development’ but delayed, while 20 GWh has seen no progress at all. Additionally, the scheme has generated only 1,118 jobs — just 0.12% of the estimated 1.03 million — and attracted only 25.58% of its targeted investment.
Also Read | Ambitious scheme to spur next-gen battery manufacturing in India stumbles
They represent a new generation of advanced storage technologies that can store electric energy as chemical energy and convert it back to electric energy as and when required. Lithium-ions — the mainstay of cellphone batteries — are the most prominent today among this class of batteries. However, the scheme is “technology agnostic” and is open to other combinations such as nickel manganese cobalt, lithium-ion phosphate and sodium-ion batteries.
EDITORIAL | Falling short: On India’s EV journey
The ACC PLI scheme, launched in October 2021, was designed to catalyse a domestic battery manufacturing ecosystem and reduce a near-total reliance on Chinese imports. However, an analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research and Analysis reveals that the policy’s ambitious goals have yet to translate into significant realised capacity. As of October 2025, only 2.8% of the targeted 50 GWh capacity has been commissioned. The 1.4 GWh is from a single beneficiary, Ola Electric. Moreover, despite a targeted incentive disbursement of ₹2,900 crore by this period, zero funds have been paid out because no beneficiary has met the necessary milestones.
Also Read | Government rolls out 100% subsidy for EV charging infrastructure under PM E-Drive
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