Analyzing the Challenges Facing India's Advanced Chemistry Cell (ACC) PLI Scheme for EVs
India's ₹18,100 crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) is struggling to meet its targets. Launched in 2021 to reduce reliance on Chinese imports, the scheme aimed for 50 GWh capacity by 2025, but only 1.4 GWh has been commissioned. Major bottlenecks include unrealistic two-year 'gestation periods' for building gigafactories, stringent Domestic Value Addition (DVA) requirements, and a lack of domestic mineral processing facilities for lithium and cobalt. Furthermore, delays in visa approvals for Chinese technical experts have hindered progress, as India currently lacks a skilled workforce for cell manufacturing.
Key Points
- The ACC PLI scheme is 'technology agnostic,' supporting various chemistries like Lithium-ion and Sodium-ion.
- As of October 2025, only 2.8% of the targeted 50 GWh capacity has been realized.
- The scheme's evaluation criteria prioritized DVA over prior manufacturing experience, favoring novices over established players.
- India remains heavily dependent on China for raw materials, technical competency, and specialized know-how.
Exam Facts
- The total outlay for the ACC PLI scheme is ₹18,100 crore.
- Beneficiaries include Ola Electric, Reliance New Energy, and Rajesh Exports.
- The scheme requires 25% Domestic Value Addition (DVA) within two years and 60% by the fifth year.
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