Advanced chemistry cell battery production in India could start by January 2024

Production of advanced chemistry cell (ACC) batteries in India is likely to commence by January 2024, said Union Minister for Heavy Industries, Mahindra Nath Pandey. PTI has quoted him saying that the production of the first set of advanced chemistry cell batteries that are aimed at boosting hybrid and electric vehicle production in India, would commence by January next year. This comes after the Indian government approved the Production Lined Incentives (PLI) scheme for manufacturing ACC batteries in the country in May 2021. As part of the strategy to boost local manufacturing and to strengthen the electrified vehicles' supply chain ecosystem, ₹18,100 crore was allocated for this segment.

The advanced chemistry cell batteries are the new generation advanced energy storage technologies that can store electric energy, either as electrochemical or chemical energy and convert it back to electric energy as and when required. Currently, the demand for the ACC is met in India through imports. During the Covid-19 pandemic and the subsequent lockdowns across the world in 2020, a massive supply chain disruption forced the auto industry players to see production halt or other difficulties. This propelled the Indian government to initiate the plan for local manufacturing of these critical components.

While speaking about the commencement of local production of ACC batteries in India, the minister reportedly stated that the ₹25,938 crore PLI scheme for the auto sector has been received well by the industry. "In December this year or by January next year, we will see the start of the manufacturing of the ACC batteries in the country," he reportedly said while speaking at the 63rd annual convention of the auto industry body SIAM.

The minister also reportedly said that the Indian government has been coming up with various policies like PLI and Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) to support the automobile industry in the country. Pandey further said that the government has added two more agencies for testing vehicles and components, which are the Global Automotive Research Centre (GARC) in Chennai and National Automotive Test Tracks (NATRAX) in Madhya Pradesh. Currently, the tests are conducted only at the Automotive Research Association of India (ARAI), Pune, and the International Centre for Automotive Technology (iCAT), Manesar (Haryana).

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