Key Highlights:
- Reliance Industries wins bid under India’s PLI scheme for EV battery production.
- PLI scheme budgeted at $434.4 million to boost local battery manufacturing.
- Reliance outperformed six competitors, securing up to 10 gigawatts of ACC production.
- India’s government targets 30% EV sales by 2030, up from 2% last year.
Reliance Secures Government Incentives for EV Battery Production
Reliance Industries has won a bid under an Indian government initiative designed to encourage the local manufacturing of electric vehicle (EV) batteries. The company emerged as the top contender under the production-linked incentive (PLI) scheme, aimed at boosting the production of advanced chemistry cells (ACCs). The scheme is part of India’s broader strategy to accelerate EV adoption across the country.
Incentive Scheme and Budget
The PLI scheme has a maximum budget of $434.4 million. It was created to enhance local battery manufacturing capabilities, a critical component in India’s push towards greater EV adoption. The government has set ambitious targets, aiming for electric vehicles to make up 30% of total automobile sales by 2030.
Reliance’s Winning Bid
Seven companies, including prominent players like Amara Raja Energy and JSW Energy, competed earlier this year to set up local ACC manufacturing facilities. Reliance Industries outperformed these competitors, securing the capability to produce up to 10 gigawatts of ACCs. These cells are crucial for the development of electric vehicles, particularly in India, which is the world’s third-largest car market.
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Government’s Ambitious EV Goals
Despite being one of the largest automotive markets globally, electric vehicles accounted for only 2% of total car sales in India last year. The government aims to significantly increase this figure to 30% by 2030, making initiatives like the PLI scheme essential for achieving these goals.
ELCTRIK Speaks
Reliance Industries’ success in securing government incentives for EV battery manufacturing marks a significant step forward in India’s EV transition. By enhancing local battery production, the company not only strengthens its position in the market but also plays a pivotal role in helping India achieve its ambitious EV adoption targets. With the support of such initiatives, India is well-positioned to make substantial progress in the electric vehicle sector.
