Delays Hit India's Advanced Battery Manufacturing Targets Under ACC-PLI Scheme
January 24, 2026
India's Advanced Chemistry Cell Production Linked Incentive (ACC-PLI) scheme is facing major delays. A report by IEEFA and JMK Research reveals visa approvals for Chinese specialists, local manufacturing rules, and lack of technology are causing slow progress. The scheme launched in October 2021 aimed to boost domestic battery cell production to 50 GWh by 2026. However, only 1.4 GWh has been commissioned on time; 8.6 GWh is delayed.
The ACC-PLI was designed to help build a local battery supply chain including cathodes, anodes, and electrolytes to cut dependence on imports, mainly from China. With ₹18,100 crore funding and a mandate for 25% local manufacturing in two years, companies were promised ₹2,000 subsidy per KWh. Companies like Ola Electric, Reliance New Energy, and Rajesh Exports were selected but have no prior battery manufacturing experience. Hyundai Global dropped out.
“No incentives have been paid yet because no batteries have been sold,” the report states. Ola Electric scaled down its plan from 30 GWh to 5 GWh by 2029. Rajesh Exports shows minimal progress amid financial concerns.
The report highlights lack of a mature manufacturing ecosystem in India, plus difficulties in getting Chinese technical experts' visas which slows equipment installation. Strict timelines and high local content requirements challenge new players.
Job creation is also far below target with only 1,118 jobs generated out of 1.03 million expected. EV battery demand is growing but slower than predicted, with 15.3% sales growth in FY2024-25 versus a 49% forecast.
India’s ambitions for a strong EV battery industry face tough hurdles under the ACC-PLI scheme, with progress far behind original goals.
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Tags:
Acc-Pli Scheme
Battery Manufacturing
India
Electric vehicles
Chinese Visa Delays
Manufacturing Delays
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