Structural Challenges Impede India's Battery Manufacturing Ambitions Under ACC PLI Scheme
A comprehensive study has highlighted significant structural problems that are substantially slowing the progress of India's ambitious battery production initiative. The Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme, which was launched with the dual objectives of reducing the nation's dependency on imports and encouraging widespread electric vehicle adoption, is facing considerable implementation hurdles.
Ambitious Targets Meet Ground Realities
The ACC PLI scheme was designed to achieve a substantial manufacturing capacity of 50 gigawatt-hours (GWh), representing a cornerstone of India's green energy transition strategy. However, the study reveals a stark contrast between these ambitious goals and the actual progress on the ground. As of the end of October 2025, the progress under this critical scheme has been remarkably limited, achieving only 1.4 GWh of the targeted manufacturing capacity.
This represents a mere fraction of the overall objective, underscoring the scale of the challenges faced by the initiative. Additionally, the study notes that another 10 GWh of capacity is currently under development, but even when combined with the operational capacity, the total remains far below the scheme's original 50 GWh target.
Core Objectives and Implementation Gaps
The scheme was strategically launched to address two pressing national priorities: reducing India's substantial dependency on battery imports and accelerating the adoption of electric vehicles across the country. By creating a robust domestic manufacturing ecosystem for advanced chemistry cells, the government aimed to secure the supply chain for electric mobility and energy storage solutions.
Despite these clear objectives, the study identifies multiple structural problems that are hampering progress. These issues span across various dimensions of the manufacturing ecosystem, including supply chain constraints, technological challenges, investment mobilization difficulties, and regulatory complexities. The limited progress to date suggests that these structural barriers require more focused and strategic interventions to overcome.
Implications for India's EV and Energy Goals
The slower-than-expected advancement under the ACC PLI scheme has significant implications for India's broader electric vehicle and renewable energy ambitions. A robust domestic battery manufacturing capacity is essential for making electric vehicles more affordable and accessible to Indian consumers, thereby reducing the nation's fossil fuel dependence and carbon emissions.
The current pace of development raises questions about India's ability to meet its electric mobility targets in the coming years without addressing these structural challenges more effectively. The gap between the targeted 50 GWh and the achieved 1.4 GWh (with another 10 GWh under development) highlights the need for a comprehensive review of the implementation strategy and potential policy adjustments.
Path Forward for Battery Manufacturing
As India continues to push forward with its clean energy transition, addressing the structural problems identified in the study becomes increasingly urgent. The success of the ACC PLI scheme is not just about meeting manufacturing capacity targets but about building a sustainable and competitive battery industry that can support India's long-term energy security and economic growth objectives.
The findings underscore the importance of creating a more conducive ecosystem for battery manufacturing, which includes addressing infrastructure gaps, fostering research and development, ensuring raw material security, and providing consistent policy support. Only through such comprehensive measures can India hope to overcome the current challenges and realize its vision of becoming a global leader in advanced battery technology and electric mobility.
