India’s RIL secures government incentives to make EV batteries

MUMBAI (ICIS)–Indian petrochemical major Reliance Industries Ltd (RIL) has won in the bid to get government incentives to produce advanced chemistry cell (ACC) batteries, which can be used in electric vehicles (EVs).

• Government incentives worth $431 million
• RIL chosen out of seven in tender process
• Construction of RIL ACC battery project in Gujarat ongoing

The company will get Indian rupees (Rs) 36.2 billion ($431 million) worth of incentives under the government’s production-linked incentive (PLI) scheme, India’s Ministry of Heavy Industries said on 4 September.

RIL bested six other bidders in the global tender process for the incentives in building an ACC plant with a 10 Gigawatt-hours (GWh) capacity, it said.

The other bidders were ACME Cleantech Solutions; Amara Raja Advanced Cell Technologies; Anvi Power Industries; JSW Neo Energy; Lucas TVS; and Waree Energies.

RIL is currently constructing an ACC-based battery manufacturing plant in Jamnagar in the western Gujarat state.

“We have already begun construction of an integrated advanced chemistry-based battery manufacturing facility with a 30 GWh annual capacity at Jamnagar,” RIL chairman Mukesh Ambani had said during the Indian conglomerate’s annual general meeting (AGM) on 29 August.

“Production will commence by the second half of next year,” Ambani added.

The plant will initially assemble battery systems and packs, later expanding to cell manufacturing and chemical production, he added.

ACC batteries can store and convert electric energy and are used in a variety of applications, including electric vehicles (EVs), renewable energy storage, consumer electronics, and as power backup.

EVs and associated battery markets provide growth opportunity for the chemical industry, with chemical producers separately developing battery materials, as well as specialty polymers and adhesives for the environment-friendly vehicles.

In May 2021, the Indian government set aside Rs181 billion for a National Programme on ACC battery storage to encourage development of the battery storage ecosystem and electric mobility in India.

In the first round of the ACC PLI bidding in March 2022, three beneficiary firms were allocated a total capacity of 30 GWh.

Ola Cell Technologies, Rajesh Exports Ltd and RIL subsidiary Reliance New Energy Solar Ltd won the bid in the first round.

The fourth company that was initially awarded incentives was eventually disqualified, paving the way for rebidding of the unawarded 20GWh capacity, according to local media reports.

Focus article by Priya Jestin

($1 = Rs83.98)