Heavy Industries Ministry signs contracts with three companies for battery manufacturing incentives, Auto News, ET Auto

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The Ministry of Heavy Industries has signed contracts with three companies under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. The selected companies are Reliance New Energy Limited, Ola Electric Mobility Private Limited and Rajesh Exports Limited.

It was initially decided that Hyundai Global Motors will also be getting the PLI support. But this was put on the backburner after it was revealed that Hyundai Global Motors does not have any links with Hyundai Motor Co and the Korean automaker’s local subsidiary, Hyundai Motor India Ltd (HMIL).

ET reported on July 19 that the government is re-examining a proposal from Hyundai Global Motors to set up a battery manufacturing facility under the PLI scheme. In a public notice issued on July 15, Hyundai Motor Co said that Hyundai Global Motors Co. Limited is not authorised to use Hyundai trademark & logo of Hyundai Motor Company and HMIL in any manner.

“Based on the above fact, the corporate name of Hyundai Global Motors Co. Limited was forced to change to Global Motors Co. Limited by the court of South Korea,” the notice said.

An official statement said that the three selected companies will receive incentives under this Rs 18,100 crore program. The private players are expected to create battery manufacturing capacity to the tune of approximately 95 GigaWatt hour.

Commenting on the PLI Scheme for ACC Battery Storage, Minister for Heavy Industries, Mahendra Nath Pandey said, “This will be favorable to Electric Vehicle ecosystem and energy storage market as it will support the demand for EVs and renewable and attract investment in this sector.”

Ten bids were received from companies with manufacturing capacity of 128 GWh under the PLI Scheme of ACC Battery Storage. Under the ACC PLI program, the manufacturing facility would have to be set up within a period of two years. The incentive will be disbursed over a period of five years on sale of batteries manufactured in India.

“Now it’s the time for private players to take the lead and become global champions and also make the country the global hub in the energy storage segment,” Heavy Industries Secretary, Arun Goel said.

The centre’s emphasis is to achieve greater domestic value addition, while at the same time ensure that the levelized cost of battery manufacturing in India is globally competitive. The program is designed in such a manner that it is technology agnostic in nature and hence only focus on the desired output of the batteries.

The beneficiary firms are free to choose suitable advanced technology and the corresponding plant and machinery, raw material, and other intermediate goods for setting up cell manufacturing facility to cater to any application.