India's Advanced Chemistry Cell PLI Scheme Faces Hurdles in Battery Manufacturing
The government's ambitious Advanced Chemistry Cell Production Linked Incentive (ACC-PLI) scheme, launched in 2021 to catalyze domestic battery manufacturing, is facing significant delays. As of October 2025, only 1.4 GWh of battery cells have been commissioned against a planned capacity of 50 GWh. Challenges include delays in visa approvals for Chinese technical specialists, lack of critical technologies, and high entry barriers for traditional manufacturers. India currently lacks a mature cell manufacturing ecosystem, leaving the industry heavily dependent on imports from China for critical mineral refining and component production.
Key Points
- The ACC-PLI scheme aims to reduce India's dependence on battery imports and accelerate EV adoption.
- Only 1.4 GWh of capacity has been commissioned out of the 50 GWh target.
- The scheme requires 25% local manufacturing within two years and 60% within five years.
- India remains dependent on China for critical mineral refining and battery cell components.
Exam Facts
- ACC-PLI scheme (Advanced Chemistry Cell Production Linked Incentive)
- Target: 50 GWh capacity
- Outlay: ₹18,100 crore
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