Archive · 22 Jan 2026
India's Battery Manufacturing Scheme Fails
India started a big plan to make batteries at home so they wouldn't have to buy them from China.
They gave money to companies to build factories, but it's not working very well.
Only a tiny bit of the planned battery-making capacity has been set up, and most of the companies aren't ready on time.
The companies are having trouble because they need special parts and experts from China, but it's hard to get them.
The Indian government is not happy and is making the companies pay penalties for being late.
They need to fix the plan so more companies can make batteries in India.
India's ACC PLI scheme aimed to establish 50 GWh of battery manufacturing capacity by 2025 but only 1.4 GWh (2.8%) has been commissioned.
Ola Electric and Reliance New Energy are the only beneficiaries making progress, with Ola planning to commission 5 GWh by March 2026.
Supply chain bottlenecks, stringent domestic value addition requirements, and delays in technology transfers have caused significant delays.
The scheme has generated only 1,118 jobs (0.12% of the target) and committed Rs 2,870 crore (25.58% of the target investment).
The government is imposing penalties on beneficiaries for delays and plans to tender the remaining 10 GWh at a later stage.
- Who
- Indian government, Ola Electric, Reliance New Energy
- What
- Failure of the ACC PLI scheme to meet targets for battery manufacturing
- When
- Ongoing, with targets set for 2025
- Where
- India
- Why
- Supply chain bottlenecks, stringent requirements, and delays in technology transfers
- Scheme
- Advanced Chemistry Cell Production Linked Incentive (ACC PLI)
- Target Capacity
- 50 GWh by 2025
- Commissioned Capacity
- 1.4 GWh (2.8%)
- Beneficiaries
- Ola Electric, Reliance New Energy
- Investment Committed
- Rs 2,870 crore (25.58% of target)
- Jobs Created
- 1,118 (0.12% of target)
- Penalty for Delay
- 0.1% of performance security per day
- Remaining Capacity
- 10 GWh to be tendered later
