Four years after its launch in May 2021, the Centre's ambitious Rs 18,100 crore battery manufacturing scheme is yet to start commercial production. Launched under the Ministry of Heavy Industries, the Production Linked Incentive scheme aims to establish a domestic manufacturing capacity of 50 GWh for Advanced Chemistry Cell (ACC) batteries, critical for electric vehicles, renewable energy storage and grid applications. However, so far it has failed to produce a single unit of commercial battery output, raising questions about the government's plans for energy self-reliance.

ACC is a technical term for modern, high-performance batteries like lithium-ion batteries used in electric vehicles, solar energy storage and other renewable energy applications. Currently, India imports from other countries, extensively from China. This has made India dependent on foreign suppliers.

Till 2025, the companies participating in the scheme were to invest Rs 2,145 crore and directly employ 1007 people. The New Indian Express found that nothing has been done so far even after a span of four years. Unhappy with the firms, the ministry issued show cause notices and levied fines. The firms, however, have requested to waive the fines, promising that they will start the project as soon as possible.

A senior officer stated that there are various challenges faced by domestic manufacturers in competing with imported batteries. These include unavailability of technology, skilled manpower gap, import of critical equipment and machinery and non-availability of upstream components.

“By providing subsidy for the production of advanced storage technologies, the scheme is supposed to reduce India's reliance on imported lithium-ion batteries, enhance energy security and support the nation's 500 GW renewable energy target by 2030,” said the officer.

He added that the main objectives of the scheme were to promote domestic manufacturing thereby reducing dependence on imports, achieve technology neutrality by innovation in cell chemistries beyond lithium-ion, including sodium-ion and solid-state batteries, attract substantial investments, promote research and development and establish at least 50 GWh of ACC manufacturing capacity domestically.