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India Set to Become a Major Production Hub for Core Component (Battery) Industry

“Our import burden of Rs 20,000 crore will also turn into a big opportunity and would make the country a Major hub in producing clean energy”

ICEA, India’s leading industry association representing mobile and component manufacturers has welcomed the step towards building the core component industry for India by announcing the Production Linked Incentive (PLI) Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’. ICEA is extremely satisfied that the the communique to the Principal Scientific Advisor to Hon’ble PM (attached) started an excellent consultation process which eventually culminated in this policy.

“We are very happy by the recently approved PLI scheme for the new generation Advanced Chemistry Cells (ACC) battery storage which is first major s policy initiative to establish the core component industry in India . We at ICEA believes that the PLI Scheme would give thrust to ‘Make in India’ initiative and will attract huge investments of Rs 45,000 crores plus in the coming years. With this push for ACC batteries, the sector would witness robust growth in the coming years. said Pankaj Mohindroo, Chairman, ICEA (India Cellular & Electronics Association).

All the demand for the ACCs is currently being met through imports in India. The National Programme on Advanced Chemistry Cell (ACC) Battery Storage will reduce import dependence. It will also support the Atmanirbhar Bharat initiative. ACC battery Storage manufacturers will be selected through a transparent competitive bidding process. The manufacturing facility would have to be commissioned within two years. The incentive will be disbursed thereafter over five years. The push for ACC battery reflects the government long-term vision to facilitate the development of advanced battery technologies and focus towards the setting up of R&D institution.

ACC batteries are the new generation of advanced storage technologies which stores electric energy as electrochemical and convert it back to electric energy as and when required. The Advanced Chemistry Cells (ACC) covers major sectors, which are consumer electronics, mobiles, electric vehicles, advanced electricity grids, solar rooftop etc. These mentioned sectors are majorly dependent and are into consuming ACC batteries.

“The natural corollary of this scheme will be building capacity in core technology and an increase in the value addition through these products which will cater to the mobile, electronics, automobile (EV) and Solar industry. Apart from this, we strongly need to work on securing the raw material supplies for these core technologies specially Lithium and Cobalt. This new generation of battery technologies controls the World’s largest growth sectors. India as a market has enormous potential to ramp up the scale, and make India a self-reliant country in this space,” said Mohindroo.

He added, “Our import burden of Rs 20,000 crore will also turn into a big opportunity and would make the country a Major hub in producing clean energy. Vigorous efforts to extend the value chain both ways i.e till end products and back integration to materials have to be made. The COE being set up by ICEA and CDAC/Meity for end products like power banks etc ,R&D and Design is the harbinger of things to come ! ”