India promotes domestic battery cell production


Ten companies have applied for an Indian government programme to promote the domestic production of battery cells, with plans for factories with a total capacity of 130 GWh – significantly more than the 50 GWh planned by India’s government.

This involves battery production for both electric cars and stationary applications. Among the companies now waiting for a decision from the government are Hyundai, Ola and Mahindra. But Reliance New Energy Solar (RNES), a subsidiary of India’s major industrial conglomerate Reliance Industries, is also among the bidders, according to a media report.

In October 2021, the Ministry of Heavy Industries (MHI) had called for proposals for the Advanced Chemistry Cell (ACC) funding programme, but the deadline was mid-January. Battery factories with a production capacity of at least 5 GWh are to be funded and built within two years.

By when and according to which criteria the MHI will award the subsidies is not clear from the report by Energy Storage News. According to the India Energy Storage Alliance, the fact that the funding call was so oversubscribed is a “new beginning” for the country’s energy storage market.

Initial plans to set up four battery cell factories in India were reported back in 2019. The government’s announcement attracted interest from Tesla, CATL and BYD at the time, however, none of the companies has submitted a proposal for the current tender.


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