New Delhi: Ola Cell Technologies Private Limited, a subsidiary of Ola Electric Mobility, has signed a Programme Agreement with the Ministry of Heavy Industries under the Production Linked Incentive (PLI) Advanced Chemistry Cell (ACC) scheme. The agreement aims to enhance India’s domestic battery production for electric vehicles.
Govt’s Push for Local Battery Manufacturing
The PLI ACC scheme, approved by the Union Cabinet in May 2021 with a budget of Rs 18,100 crore, is designed to establish large-scale battery manufacturing facilities in India. The initiative aligns with the government’s goal of strengthening the country’s EV ecosystem and reducing dependence on battery imports.
By participating in the scheme, Ola Electric aims to scale up its battery production capacity and contribute to India’s electric mobility goals. The initiative is expected to help the company develop advanced chemistry cells while increasing domestic value addition.
Impact on India’s EV Industry
The collaboration is part of a broader push to promote indigenous battery manufacturing under the ‘Make in India’ campaign. Strengthening local production of ACC batteries is expected to reduce costs and make electric vehicles more accessible. With rising demand for EVs, India is focusing on securing a domestic supply chain for key battery components. The government has been pushing for self-reliance in advanced battery storage technologies, and partnerships with private players like Ola Electric are crucial in achieving that goal.
This move comes as India looks to expand its EV infrastructure and meet its carbon reduction targets. By supporting large-scale battery manufacturing, the government aims to build a competitive market for EV components, positioning India as a key player in the global clean energy transition.
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