The Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma submitted a written reply in the Lok Sabha, stated that India’s annual demand for lithium-ion batteries is projected to rise sharply from 40 GWh in 2025 to around 210 GWh by 2030, according to the NITI Aayog report titled “Advanced Chemistry Cell Battery Reuse and Recycling in India”, published in May 2022.
To support domestic manufacturing and reduce import dependence, the Ministry of Heavy Industries is implementing the Production Linked Incentive (PLI) scheme titled “National Programme on Advanced Chemistry Cell (ACC) Battery Storage”. The scheme, approved in May 2021, has a total financial outlay of ₹18,100 crore and aims to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity.
Under the PLI ACC scheme, the Government is supporting the creation of 50 GWh of ACC capacity. In addition to companies selected under the scheme, at least 10 other manufacturers have announced plans to set up a cumulative capacity of approximately 178 GWh in the country over the next five years. Beneficiary-wise details of projected and current cell manufacturing capacities have been submitted under the scheme.
| Sl. No. | Beneficiary firms under PLI ACC Scheme | Projected Manufacturing Capacity
(in GWh) |
Current
Manufacturing Capacity (in GWh) |
| 1. | ACC Energy Storage Pvt. Ltd. | 5 | 0 |
| 2. | Ola Cell Technologies Pvt. Ltd. | 20 | 1 |
| 3. | Reliance New Energy Battery Storage Ltd. | 5 | 0 |
| 4. | Reliance New Energy Battery Ltd. | 10 | 0 |
| TOTAL | 40 | 1 |
As per information provided by the Ministry of Mines, several initiatives have been undertaken to secure India’s critical mineral supply chains, including lithium, through domestic exploration and overseas mineral agreements. The Union Cabinet approved the establishment of the National Critical Minerals Mission (NCMM) on 29 January 2025, with a financial outlay of ₹16,300 crore for the period from FY 2024–25 to 2030–31. The mission aims to strengthen the entire critical minerals value chain, covering exploration, mining, beneficiation, processing, and recovery from end-of-life products.
The Geological Survey of India (GSI) has intensified exploration activities for critical and strategic minerals, undertaking 195 exploration projects during 2024–25 and 230 projects during 2025–26 across the country. Additionally, the National Mineral Exploration and Development Trust (NMEDT) sanctioned 62 critical mineral exploration projects in 2024–25 and 36 projects in 2025–26.
The Ministry of Mines has successfully auctioned 34 blocks of critical minerals and seven blocks under Exploration Licenses, three of which pertain to critical minerals. Further, Khanij Bidesh India Limited (KABIL), a joint venture under the Ministry of Mines, has acquired five lithium brine blocks in Argentina’s Catamarca province for exploration and development.
The Ministry of Mines is also actively engaged in multilateral and bilateral initiatives such as the Minerals Security Partnership (MSP), India–US Strategic Mineral Recovery Initiative, Indo-Pacific Economic Framework (IPEF), and the India–UK Technology Security Initiative (TSI) to strengthen critical mineral value chains.
According to the Ministry of Environment, Forest and Climate Change (MoEFCC), the Battery Waste Management Rules (BWMR), 2022, notified on 24 August 2022, mandate environmentally sound management of all types of waste batteries, including lithium-ion batteries. The rules impose Extended Producer Responsibility (EPR) obligations on producers and importers for collection, recycling, or refurbishment.
A centralized online EPR portal has been developed for registration and EPR certificate exchange. To date, 3,391 lithium-ion battery producers and 43 recyclers have registered on the portal, and approximately 15,370 tonnes of lithium-ion battery waste has been recycled since the rules came into effect.
The PLI ACC scheme remains technologically agnostic, enabling higher incentives for superior technologies. It is designed to attract investments, promote research and development, and facilitate the integration of advanced technologies. Expenditure on research and development by beneficiary firms is also permitted to meet investment criteria under the scheme.
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