Seven Bidders Compete for India's Advanced Chemistry Cell Manufacturing Initiative

India's push towards electric mobility and renewable energy storage received a significant boost as seven prominent companies submitted bids for the Production Linked Incentive (PLI) scheme on Advanced Chemistry Cells (ACC). This initiative aims to bolster the country's manufacturing capabilities in ACC, essential for electric vehicles and battery storage systems. Notably, the absence of Exide Industries from the bidding list raises eyebrows, considering its substantial investments in advanced battery cell manufacturing.

Key Points:

- The Ministry of Heavy Industries disclosed that seven companies, including Reliance, JSW, and Amara Raja, submitted bids for the PLI scheme on ACC manufacturing, totaling a cumulative capacity of 70 GWh.

- The scheme, launched in May 2021 with an outlay of Rs 18,100 crore, aims to achieve a manufacturing capacity of 50 GWh of ACC. The first round concluded in March 2022, with three firms allocated a total capacity of 30 GWh.

- The current bidding round, announced on January 24, 2024, targets the establishment of ACC manufacturing units with a capacity of 10 GWh, with a budgetary outlay of Rs 3,620 crore.

- Exide Industries' absence from the bidding process is notable, given its substantial investments in advanced battery cell manufacturing through its subsidiary, Exide Energy Solutions Ltd.

Implications:

- The participation of key players in the ACC manufacturing sector signals growing interest and investment in India's electric mobility and renewable energy storage ecosystem.

- Successful implementation of the PLI scheme is expected to bolster domestic manufacturing capabilities, reduce dependence on imports, and promote self-reliance in critical technology sectors.

- Exide Industries' exclusion from the bidding process raises questions about its strategic approach and future plans in the rapidly evolving ACC market.

The enthusiastic response to India's PLI scheme on ACC manufacturing underscores the industry's confidence in the country's potential as a manufacturing hub for electric mobility and renewable energy solutions. As the bidding process progresses, stakeholders anticipate significant advancements in ACC technology and production capacity, driving India's transition towards a cleaner and more sustainable energy future.