India has launched a giga-scale battery manufacturing plan under the National Program on Advanced Chemistry Cell (ACC) Battery Storage, offering subsidies to companies that set up large-scale domestic facilities, News18 reported.

The scheme is designed to reduce import dependence, strengthen energy security, and support the rapid expansion of renewable energy by mandating localisation milestones and capacity targets.

The Centre has invited bids from Indian and global companies, public sector entities, LLPs, and investment funds to establish giga-scale ACC manufacturing facilities for grid-scale energy storage.

The Ministry of Heavy Industries has floated a Request for Proposal (RFP) under this program, with subsidies linked to the creation of manufacturing capacity and localisation of production.

The initiative comes as India prepares for a rapid expansion of renewable energy capacity. Large-scale battery storage is expected to play a crucial role in balancing the electricity grid, particularly as demand rises for clean energy and backup solutions.

Officials emphasise that domestic manufacturing is essential to reduce reliance on imported battery cells, especially from Asian suppliers, and to ensure long-term energy security.

The scheme requires successful bidders to establish advanced battery manufacturing facilities with at least 25 per cent domestic value addition within two years of project commencement. Within five years, companies must achieve a minimum manufacturing capacity of one gigawatt-hour (GWh) while increasing domestic value addition to at least 40 per cent. These localisation requirements are intended to build a robust domestic supply chain and attract large-scale investment.

Companies may adopt either integrated manufacturing units or a hub-and-spoke model, where different components of the battery ecosystem are produced by indigenous manufacturers while meeting localisation requirements. Financial support will be available only to those meeting these milestones, under a Programme Agreement signed with the Government of India.

State governments are expected to play a significant role in attracting investment. Each selected company will sign a tripartite agreement with the Centre and the respective state government. States may offer additional incentives such as land, infrastructure support, tax concessions, or other facilitation measures. However, the Centre retains the authority to seek modifications to these agreements before finalisation.

This plan builds on India’s broader energy storage policy framework. In May 2026, the Union Cabinet approved a ₹5,400 crore Viability Gap Funding scheme to support 30 GWh of new grid-scale battery energy storage capacity.

Industry estimates suggest India will require over 411 GWh of energy storage by 2031–32, split between battery systems and pumped hydro. Current pipeline projects already exceed 90 GWh, highlighting the urgency of scaling domestic manufacturing.

By encouraging local production of advanced battery cells, India aims to cut import dependence, attract global investment, and position itself as a manufacturing hub for next-generation energy storage technologies.

This aligns with the country’s clean energy ambitions and its net zero emissions target for 2070. The program is expected to accelerate renewable energy deployment, stabilise the grid, and strengthen India’s role in the global battery ecosystem.

Agencies