TL;DR
India's ACC battery manufacturing PLI scheme faces significant delays and challenges, impacting local production goals and EV growth due to lack of expertise and import reliance.
India's ambitious Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery manufacturing, aimed at boosting local production and reducing import dependence, is encountering significant challenges. The scheme, launched in October 2021 with a target of 50 GWh capacity by 2026, has seen slow progress, with only 1.4 GWh commissioned on time and 8.6 GWh under delayed development as of October 2025.
A key issue highlighted is the lack of prior battery manufacturing expertise among many selected beneficiaries, alongside a substantial gap between intended and actual outcomes in job creation. India's reliance on imported raw materials and components, particularly from China, further complicates the development of a mature cell manufacturing ecosystem. Delays in visa approvals for Chinese technical specialists, crucial for equipment installation, have also contributed to the sluggish progress.
The scheme's aggressive two-year installation timeline and high domestic value-addition requirements have posed significant hurdles for companies without prior experience. This has led to concerns about India's ability to achieve its clean mobility transition goals, as the EV sector, a major consumer of lithium batteries, saw only 15.3% year-on-year growth in FY2024-25, far below the projected 49% growth.
