India is close to a major step in its plan to build a local battery cell industry. The move comes as the government works to add more domestic capacity for advanced battery cells and cut the country’s reliance on imports.
A key part of this effort is the Production Linked Incentive, or PLI, scheme for Advanced Chemistry Cells, also known as ACCs. The scheme has a total outlay of ₹18,100 crore, or ₹181 billion, and has a target of 50 GWh of ACC manufacturing capacity in India.
The ₹130 billion figure linked to recent reports should therefore be treated with care. The main ACC PLI programme approved by the government has an official value of ₹18,100 crore. The latest step is the allocation of the final 10 GWh of capacity under that programme.
Why Battery Cells Matter
Battery cells are the core part of an electric vehicle battery. They also have a major role in large energy storage systems that can save power from solar and wind plants for use at a later time.
India has made rapid progress in electric vehicles and renewable power. But much of the battery cell supply still comes from outside the country. This leaves local companies exposed to global prices, supply risks and changes in trade policy.
The government wants India to make more of these cells at home. The larger goal is not only to support electric vehicles. It is also to create a stronger domestic energy system and reduce the need for costly imports.
The ACC scheme was approved by the Union Cabinet in May 2021. Its main goal is to create a large battery manufacturing base in India and attract both Indian and global companies to the sector.
50 GWh Capacity Target
Under the programme, India set a target of 50 GWh of ACC cell capacity. So far, 40 GWh has been awarded to four companies.
These awards cover ACC Energy Storage Pvt. Ltd. with 5 GWh, Ola Cell Technologies Pvt. Ltd. with 20 GWh, and two Reliance units with 5 GWh and 10 GWh. The total comes to 40 GWh.
The government has now put the remaining 10 GWh up for a global tender. This capacity has a special purpose. It is reserved for grid-scale stationary storage, rather than only vehicle batteries.
This is important because India needs more large battery systems as its solar and wind power base expands. Renewable power does not always arrive when people need electricity. Solar power, for example, is available during the day, while power demand can stay high after sunset.
Large batteries can help solve part of this problem. They can store electricity when supply is high and release it when demand rises.
Final 10 GWh Up for Bids
The Ministry of Heavy Industries released the tender documents on 15 July 2026. Companies have until 13 October 2026 to submit their bids. The technical bids are due to open on 14 October 2026.
The selection will use a two-stage Quality and Cost Based Selection, or QCBS, process. This means the government will assess both the technical ability of a company and its financial offer. Price alone will not decide the winners.
The tender is a major step because it can complete the original 50 GWh capacity plan under the ACC PLI programme.
A pre-bid meeting also took place in July, with 29 potential bidders at the event. Officials from the Ministry of Heavy Industries, NITI Aayog, the Ministry of New and Renewable Energy and the Ministry of Power took part.
Progress Has Been Slow
The policy has a large target, but the actual progress has been slower than first expected.
As of 31 December 2025, the four selected companies had reported a total investment of ₹3,237 crore and direct employment of 1,118 people across their awarded projects.
Only one company had reached actual cell production at that point. Ola Cell Technologies had set up a 1 GWh plant and had started pilot production in March 2024. The company was working toward stable full-scale commercial output.
The government has also said that companies face several problems. These include a lack of battery technology, a shortage of skilled workers, the need to import key machines and a limited supply of upstream components.
These issues show why a large policy budget does not always lead to factories at the same speed as the original plan.
Incentives Will Come Later
The ACC PLI scheme does not give companies the full benefit at the start. The incentive is tied to actual production and other conditions.
The scheme has a two-year setup period, followed by a five-year incentive period. Companies must also meet domestic value-addition targets. The official scheme requires at least 25% domestic value addition at the start, with a rise to 60% within five years.
Recent reports say the government expects PLI incentive payments to start around FY28, subject to successful cell tests at approved laboratories. Some firms, including Ola Electric and Reliance Industries, have received a two-year extension to their incentive periods.
This delay matters because India needs commercial-scale cell output, not just announced factory capacity.
India Still Depends on Imports
The main reason for the policy is simple. India wants more control over a key part of the battery supply chain.
At present, domestic demand for battery cells remains largely dependent on imports. The government itself has noted that import dependence continues despite the ACC PLI scheme.
There is also a wider supply-chain problem. Making cells in India does not mean every part of the battery comes from India. Important materials such as cathodes, anodes and electrolytes still have limited local production at commercial scale.
That means India must work beyond cell factories if it wants a truly local battery industry. It will need more local suppliers, raw material access, battery technology, skilled workers and equipment makers.
A Bigger Role for Energy Storage
The decision to reserve the final 10 GWh for grid storage shows how India’s battery needs are changing.
Electric vehicles remain a major source of future demand. But large stationary batteries could become just as important as renewable power takes a bigger share of the electricity mix.
The Central Electricity Authority already tracks the development of battery energy storage systems across the country.
For India, reliable storage can help reduce pressure on the power grid. It can also help solar and wind power serve consumers at times when natural conditions do not support direct power supply.
What Comes Next
The next major date is 13 October 2026, when bids for the final 10 GWh capacity are due. The technical bids will open one day later.
If the government selects capable companies and projects move ahead on time, India could add another major part to its domestic battery base.
But the real test will come after the awards. India needs factories that produce cells at commercial scale, meet quality standards and reach higher levels of local value addition.
The ACC PLI scheme is therefore more than a subsidy plan. It is an attempt to create a complete battery industry in India.
The official programme has a ₹18,100 crore outlay and a 50 GWh target. With 40 GWh already awarded and the final 10 GWh now up for bids, the policy has reached an important stage.
The challenge now is to turn those targets into real factories, real output and a supply chain that can support India’s electric mobility and clean power goals for years to come.
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