Govt to introduce another PLI scheme for batteries: Union Minister R K Singh
Notable because
Building on the existing Performance-linked Incentive (PLI) Scheme for Advanced Chemistry Cells (ACC), the reported second PLI scheme could accelerate cost reduction in indigenous battery manufacturing. In tandem with the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II and the PLI scheme for automobiles and auto components, it could further accelerate the development of the domestic electric vehicle (EV) manufacturing ecosystem and promote EV uptake.
What to look out for in the months ahead
The existing PLI scheme, which promotes domestic battery manufacturing, is technology agnostic. Thus, it could end up advancing manufacturing based on lithium-ion technologies, which are the most commercially viable option but also rely on global value chains for the sourcing of mineral raw materials. Could the reported second PLI scheme include a dedicated allocation for promoting technologies that rely on raw materials that are abundantly available in India?