Advanced Chemistry Cell battery PLI
Also called: ACC PLI, National Programme on Advanced Chemistry Cell Battery Storage · Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT
Meaning
The Advanced Chemistry Cell (ACC) battery PLI is the Ministry of Heavy Industries' scheme to get advanced battery cells made in India. Its official name is the National Programme on Advanced Chemistry Cell Battery Storage. A battery cell is the basic unit that stores energy. Many cells are packed together to make the battery of an electric vehicle (EV) or a grid storage system. The scheme is a production-linked incentive (PLI), so the government pays only after the firm makes and sells cells, in proportion to its output. Building the factory alone earns nothing. It matters because EV and ACC batteries are a sunrise industry, meaning a new and fast-growing one, and India now imports most of its cells.
Example
A firm sets up a cell factory in India and starts selling cells to EV makers. It earns the incentive only on the cells it sells. Battery-grade lithium and nickel sulphate are key inputs for these cells. The 2026 CAPEX Support Scheme aims to make them at home, with targets of 60 kt of lithium and 100 kt of nickel processing capacity by 2030.
Don't confuse with
- CAPEX Support Scheme for critical mineral processing (2026): this scheme pays a 30% capital subsidy, meaning help with the upfront cost of building the plant. The money comes in tranches linked to investment milestones, not output. The ACC PLI pays only for cells actually produced and sold.