India Aims to Boost Domestic EV Battery Production to Cut Costs
India Aims to Boost Domestic EV Battery Production to Cut Costs
IN · Published Jul 26, 2026
The Indian government has launched the ₹18,100 crore 'Advanced Chemistry Cell (ACC) PLI' scheme to scale up domestic lithium-ion battery cell manufacturing.
This initiative aims to reduce the cost of electric vehicles (EVs) by addressing the fact that batteries account for nearly half of an EV's manufacturing cost.

Impact & Risks

The initiative could significantly impact the EV market in India by potentially lowering costs and reducing dependency on imports. However, the slow pace of progress and the need for substantial capital investment may delay cost reductions for consumers. Additionally, the lack of domestic refining capacity for critical minerals poses a risk to the sustainability of the initiative. While two-wheeler and three-wheeler EVs have already achieved price parity with petrol vehicles, the passenger car segment remains vulnerable to global commodity price fluctuations and foreign exchange rates.

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