Reliance industries wins bid for EV battery unit under PLI scheme

• Electric models made up about 2% of total car sales in India last year.

Highlights:

• Reliance Industries has emerged as a winner under India's Production-Linked Incentive (PLI) scheme for the local manufacturing of advanced chemistry cells (ACCs).
• The program, designed to boost domestic EV battery production, aims to support India’s transition to electric vehicles in line with the government's ambitious targets for EV adoption.

Key Developments:

Reliance Industries' Winning Bid:

• Reliance Industries, an oil-to-telecom conglomerate, has secured a bid to produce up to 10 gigawatts of ACCs. This win positions Reliance as a major player in India's electric vehicle (EV) supply chain.
• ACCs are crucial for powering electric vehicles and are integral to advancing EV infrastructure in India.

Competitors in the Bidding:

• Reliance beat six competitors, including prominent players like Amara Raja Energy and Mobility and JSW Energy. These companies had also submitted bids to establish local ACC manufacturing units under the PLI scheme.

PLI Scheme Details:

• The PLI scheme for ACC production, with a total outlay of $434.4 million, was launched to boost domestic manufacturing of EV batteries.
• This is part of India's broader strategy to develop local capabilities in critical industries and reduce reliance on imports, especially in high-tech sectors like electric mobility.

India’s EV Goals:

• Currently, electric vehicles account for only 2% of total car sales in India. The government has set a target to increase EV sales to 30% by 2030, reflecting its commitment to reducing carbon emissions and transitioning to greener transport solutions.

Prelims Takeaways:

• PLI Scheme