India’s EV Market to Surge again
India’s EV plans to get a policy boost as govt may fast-track 3 big-ticket schemes.
Under the PLI ACC scheme, the Government of India plans in allocating 10 GWh capacity for local production of advanced batteries and introducing a payment security mechanism to support the wider adoption of electric buses. Before moving further, let’s try to understand what is PLI ACC scheme.
The Production Linked Incentive (PLI) scheme for the National Programme on Advanced Chemistry Cell (ACC) Battery Storage is a technology-agnostic program that aims to increase India’s manufacturing capacity of Advanced Chemistry Cells (ACC). The next question is what is this ACC?
Advanced Chemistry Cells (ACC) is the new generation battery technology which helps in the storage of energy, fast charging of batteries and many more applications.
The key features of ACC are:
- Higher Energy Density: Means more energy can be stored in a given volume or weight
- Improved Charge/Discharge Rates: Batteries can be charged faster and can provide energy more quickly when needed. This is especially important for EV’s and portable electronics.
- Longer Lifecycle: Batteries can be charged and discharged many more times before they degrade.
- Enhanced Safety: These batteries are less prone to issues like overheating, short-circuiting, or catching fire.
ACCs are crucial for EVs as they provide longer driving ranges, faster charging, and improved safety. It provides with better battery performance in smartphones, laptops, and other gadgets. Improved batteries for storage of renewable energy from solar and wind is provided.
The Union Cabinet on 12th May 2021 had approved an outlay of Rupees 18,100 crore, with a motive to strengthen the ecosystem for Electric Mobility and Battery Storage in the country.
As of 23rd April, 2024, India has already received significant number of bids under the Production Link Incentive Scheme for 10 GWh (gigawatt-hour) Advanced Chemistry Cell (ACC) manufacturing. Altogether, the Companies that have bid for the PLI scheme have already bid for a total capacity of 70 GWh, which is seven times more than the manufacturing capacity that is to be awarded.
The main objective of this is to set up ACC Manufacturing Units with a total manufacturing capacity of 10 GWh and a maximum budgetary outlay of INR. 36.2 billion.
The government has received seven bids for the PLI ACC initiative, emphasizing the role of local battery manufacturing in cost reduction. The Companies that have bid for the PLI scheme are ACME Cleantech Solutions Private Limited, Amara Raja Advanced Cell Technologies Private Limited, Anvi Power Industries Private Limited, JSW Neo Energy Limited, Reliance Industries Limited, Lucas TVS Limited, and Waaree Energies Limited.
According to a report title “Raw Materials for Battery & Component Manufacturing,” the ACC battery market demand in India is predicted to increase from 20 GWh in 2022 to about 220 GWh by 2030 at a CAGR growth of around 50%.
To Conclude, India is moving aggressively to achieve its target of net zero emission target by 2070. Appropriate Government Policies and technological advancements will help to achieve it’s objective.
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