The government has announced the winners of the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme and two of the biggest names in the Indian industry, Reliance Industries Limited (RIL) and Ola Electric, have emerged victorious.
Under the ACC PLI scheme, the government will provide financial incentives to companies that manufacture ACCs in India. ACCs are a type of lithium-ion battery that is used in electric vehicles, energy storage systems, and other applications.
RIL and Ola Electric have both proposed to set up large-scale ACC manufacturing facilities in India. RIL's facility will have a capacity of 40 GWh per year, while Ola Electric's facility will have a capacity of 20 GWh per year.
The government's decision to award ACC PLI sops to RIL and Ola Electric is a significant development for the Indian EV industry. ACCs are a key component of EVs, and the availability of domestically manufactured ACCs will help to reduce the cost of EVs in India.
Here are some of the expected benefits of the ACC PLI scheme for the Indian EV industry:
- Reduced cost of EVs: The availability of domestically manufactured ACCs will help to reduce the cost of EVs in India. This is because ACCs are a major component of EVs, and they account for a significant portion of the cost of EVs.
- Increased investment in the EV industry: The ACC PLI scheme is expected to attract significant investment in the Indian EV industry. This is because the scheme provides financial incentives to companies that manufacture ACCs in India.
- Job creation: The ACC PLI scheme is expected to create a large number of jobs in the Indian EV industry. This is because the scheme will lead to the setting up of new ACC manufacturing facilities and the expansion of existing facilities.
- Reduced reliance on imports: India is currently dependent on imports for key raw materials used in ACC manufacturing, such as lithium and cobalt. The ACC PLI scheme will help to reduce India's reliance on imports by promoting the domestic manufacturing of ACCs.
- Boost to the Indian economy: The ACC PLI scheme is expected to boost the Indian economy by increasing investment, creating jobs, and reducing imports.
The ACC PLI scheme is a positive development for the Indian EV industry and the Indian economy as a whole. The scheme has the potential to reduce the cost of EVs in India, attract investment in the EV industry, create jobs, reduce reliance on imports, and boost the Indian economy.
