India Aims to Boost EV Affordability with Domestic Battery Production
India Aims to Boost EV Affordability with Domestic Battery Production
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 India's reliance on imports, particularly from China, and lower the cost of electric vehicles (EVs).

Impact & Risks

The initiative could significantly impact India's EV market by reducing costs and fostering local manufacturing. However, the slow pace of progress and reliance on imported raw materials like lithium, cobalt, and nickel pose risks. Consumers may not see immediate price reductions, as manufacturers are likely to prioritize recovering their investments. Additionally, the lack of a comprehensive domestic ecosystem for refining and recycling critical materials could hinder long-term sustainability.

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