Rs 18,100 Crore ACC Battery Manufacturing: Can India Deliver?

ACC battery manufacturing in India is entering another phase, with the Ministry of Heavy Industries receiving 22 bids for 10 GWh of Advanced Chemistry Cell (ACC) production capacity earmarked for grid-scale stationary storage.

The development comes under the Rs 18,100 crore Production Linked Incentive (PLI) scheme, which targets 50 GWh of domestic manufacturing capacity.

The ministry described the response as reflecting “growing interest in establishing domestic ACC manufacturing capacity”.

However, the latest bidding round also raises a larger industrial policy question: can India convert investment commitments into operational factories while building a competitive domestic battery supply chain?

Key Highlights

• 22 bids received for 10 GWh of ACC battery manufacturing capacity.
• The Rs 18,100 crore PLI scheme targets 50 GWh of domestic capacity.
• Only 1.4 GWh has been commissioned against 40 GWh previously allocated.
• Technology dependence, imported machinery and upstream material shortages remain key challenges.

Also Read: Green Energy Corridor Phase 3: Who Funds Rs 1.86 Lakh Cr?

ACC Battery Manufacturing: 50 GWh Target Faces Execution Gap

The latest tender represents the remaining 10 GWh under the government's 50 GWh manufacturing target.

The other 40 GWh had previously been allocated to four beneficiaries: Ola Cell Technologies, Reliance New Energy Battery Storage, Reliance New Energy Battery and ACC Energy Storage.

However, implementation remains a concern. According to a July 2026 parliamentary disclosure, only 1.4 GWh had been commissioned by June 30, 2026, against the 40 GWh awarded.

The beneficiaries had reported cumulative investments of Rs 5,270 crore and direct employment of 1,292 people.

The new tender, issued on July 15, 2026, follows a two-stage Quality and Cost Based Selection mechanism. Technical bids were opened on November 11, with 22 bidders participating.

India's battery manufacturing industry will need faster project execution to meet its domestic energy storage ambitions.

Battery Supply Chain Faces Localization Challenges

Expanding ACC battery manufacturing will require more than establishing cell production facilities. India also needs a domestic ecosystem for critical materials, components and specialized production equipment.

NITI Aayog's November 2026 assessment of PLI schemes identified several structural constraints affecting the ACC program:

• Limited domestic technological capabilities and dependence on foreign expertise.
• An underdeveloped upstream ecosystem for key battery materials.
• Reliance on imported manufacturing machinery.
• Project execution delays and shortages of skilled manpower.

Can Government Policy Deepen Domestic Manufacturing?

The ACC PLI scheme aims to attract domestic and international manufacturers while reducing India's dependence on imported battery cells.

The latest tender also places emphasis on domestic value addition. Its program requirements prescribe 25 percent value addition within two years and 40 percent within five years.

For India, the next challenge is to translate these policy requirements into a broader industrial ecosystem involving battery materials, components, machinery and technology development.