Reliance Industries has secured a bid under the Indian government’s incentives program to support the production of electric vehicle (EV) batteries, as announced on September 4, 2024. The company is one of seven that submitted proposals earlier this year to establish local manufacturing units for advanced chemistry cells (ACCs), a critical component in EVs.
Under the government’s production-linked incentive (PLI) scheme, Reliance Industries is now authorized to produce up to 10 GWs of ACCs. This achievement positions the oil-to-telecom conglomerate ahead of six other competitors, including Amara Raja Energy and Mobility and JSW Energy, who also vied for the same incentives.
ACCs are essential for the development of electric vehicles, which are increasingly important in India, the world’s third-largest automobile market. The PLI scheme, with a maximum outlay of $434.4 million, aims to enhance local production of EV batteries. This initiative aligns with the government’s ambitious goals for EV adoption in the country.
Currently, electric vehicles account for approximately 2% of total car sales in India. However, the government is pushing for a significant increase, with a target of 30% EV adoption by 2030. The local manufacturing of ACCs is expected to play a key role in meeting this target by reducing dependency on imported components and fostering the growth of the EV industry in India.
