Slower electric vehicle adoption and severe local supply chain bottlenecks have severely hampered India's flagship program to localize Advanced Chemistry Cell manufacturing. Beneficiary firms struggle to meet mandatory domestic value-addition targets because critical components like lithium, cobalt, cathodes, and anodes remain unavailable domestically. Consequently, commercial production is stalled and no financial incentives have been disbursed under the Rs 18,100 crore initiative. Compounding these structural delays, one participating firm was formally disqualified for suppressing material facts.
Key points
Beneficiary companies must achieve 25 percent domestic value addition by year two and 60…: Beneficiary companies must achieve 25 percent domestic value addition by year two and 60 percent by year five.
Relying on foreign technology and facing severe domestic shortages of critical minerals l…: Relying on foreign technology and facing severe domestic shortages of critical minerals like cobalt and lithium hinders local production.
Advanced battery initiatives demand significant lead time before operations mature, maint…: Advanced battery initiatives demand significant lead time before operations mature, maintaining a positive long-term outlook despite immediate delays.
Sources checked by our analysis pipeline: 1
New Delhi: India's Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries has developed only 1.4 gigawatt-hours (GWh) of manufacturing capacity against a target of 50 GWh, with commercial production yet to begin, according to a NITI Aayog report.
The report, titled "Impact Assessment of PLI Schemes", prepared by NITI Aayog in collaboration with IIM Ahmedabad, said the Rs 18,100 crore scheme has witnessed slower-than-expected progress due to technological limitations, dependence on imports and delays in setting up manufacturing facilities.
"The scheme is currently in its early gestation phase, and progress has been slower than anticipated. As of now, only about 1.4 GWh of capacity has been developed against the targeted 50 GWh, and commercial production has not yet commenced," the report stated.
The scheme aims to develop domestic manufacturing capacity for advanced batteries used in electric vehicles and energy storage systems, reducing India's dependence on imported battery technologies.
According to the report, cumulative investment under the scheme reached Rs 4,570 crore by March 2026, while employment generation stood at 1,245. However, no incentive disbursements have been reported…
Federal officials intervened after parent firm Cleveland-Cliffs attempted to cut staff despite binding acquisition terms that protect domestic employment through 2029. The retreat averts a severe legal battle over foreign ownership compliance while shielding unionized steel operations from cross-border trade friction.
Manufacturers cite mounting violence and an absence of security guarantees as demonstrations over compensation escalate across key industrial hubs. An operational halt threatens severe disruption to the country's economic backbone during the critical pre-Christmas shipping rush. Employers have warned they will invoke labour laws permitting indefinite closures without pay unless unrest subsides.
High-profile industry leaders are emphasizing how integral executive leadership remains to securing major semiconductor agreements. The observation highlights how key partnerships and future business pipelines at the chipmaker may depend heavily on personal executive relationships. Without such leadership steering these high-stakes negotiations, the company risks forfeiting vital commercial opportunities.