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The government has approved the applications of four firms for the production-linked incentive (PLI) scheme for advanced chemistry cells (ACC) for energy storage on Thursday, which includes Hyundai Global Motors Co., Reliance New Energy Solar Ltd, Ola Electric Mobility, and Rajesh Exports Ltd, according to two government officials.
The Department of Heavy Industries (DHI) accepted proposals for the 50 GWh ACC PLI program for energy storage from ten firms of about 130 GWh capacity in January. The scheme’s overall capacity would be 50GWh, with an investment of more than Rs 18,000 crores.
In accordance with the aforementioned government officials who requested anonymity, while Hyundai and Ola would each receive incentives for 20 GWh of battery storage capacity, Reliance New Solar and Rajesh Exports will each get perks for 5GWh.
The successful bidders would be required to establish ACC battery production facilities within two years. Following that, the incentives will be distributed over a five-year period based on the sale of batteries.
Hyundai Global will receive Rs 600/kWh, Ola Electric will get Rs 1,700/kWh, Rajesh Exports will acquire Rs 1,550/kWh, and Reliance New Solar would receive Rs 1,600/kWh, stated one of the two executives.
The ACC battery storage initiative aims to promote investments in order to increase India’s proportion of renewable energy consumption.
The initiative aims to encourage internationally cost-competitive indigenous battery manufacturing capabilities, as well as deep localization and supply chains, in order to accelerate the adoption of electric vehicles (EVs) in India.
The program is technology-neutral, so grantees can create batteries using any modern cell chemistry.
Ola Electric announced the addition of Prabhakar Patil, the former LG Chem Power CEO, to its board of directors on Wednesday to lead the design and development of India’s revolutionary battery cell technology.
A few Asian businesses, notably LG Energy Solutions, CATL, and Panasonic, dominate battery cell manufacture and sell to Indian enterprises. The government desires indigenous manufacture and intends to build a total of 50 GWh of battery storage capacity over a five-year period.