India Strengthens Battery Manufacturing with PLI Scheme and Mineral Mission
The Ministry of Heavy Industries has launched a major initiative to boost domestic battery production through the Production Linked Incentive (PLI) scheme. This program, known as the “National Programme on Advanced Chemistry Cell (ACC) Battery Storage,” was approved in May 2021 with a significant investment of ₹18,100 crore aimed at developing a manufacturing capacity of 50 GWh for Advanced Chemistry Cells.
In parallel, the Ministry of Mines has commenced robust measures to ensure the supply chain for critical minerals, including essentials like lithium, nickel, and cobalt. Key steps include the establishment of the National Critical Minerals Mission (NCMM), approved by the Union Cabinet on January 29, 2025. With a funding allocation of ₹16,300 crore for the period from FY 2024-25 to 2030-31, the mission aims to fortify every stage of the mineral value chain, from exploration and mining to recovery from end-of-life products. Notably, the Ministry has designated nine esteemed institutes—four IITs, one IISc, and four R&D labs—as Centres of Excellence (CoE) under this initiative.
The Geological Survey of India (GSI) is stepping up its efforts, initiating 195 critical mineral exploration projects in the fiscal year 2024-25, with an additional 230 expected in 2025-26. Furthermore, the National Mineral Exploration and Development Trust (NMEDT) has approved 62 projects for critical mineral exploration in 2024-25 and another 36 in 2025-26. The efforts have already yielded results, with the successful auctioning of 34 blocks of critical minerals and seven blocks for Exploration Licenses, three of which are designated for critical minerals.
In a bid to enhance recycling capabilities, the Union Cabinet has also sanctioned a ₹1,500 crore incentive scheme to support the separation and production of critical minerals from secondary sources. Guidelines for funding pilot projects focused on extracting critical minerals from various waste materials, including overburden and tailings, were issued in November 2025.
KhanijBidesh India Limited (KABIL), a joint venture under the Ministry of Mines, recently acquired five lithium brine blocks in Argentina’s Catamarca province aimed at exploration and development. The PLI scheme for ACCs encourages technological innovation by offering higher incentives to superior technologies, thus attracting substantial investments and fostering R&D.
The Ministry of Mines also extends financial support for R&D projects through its Science and Technology Programme, targeting various sectors such as mining, mineral processing, and recycling. Since 2018-19, 11 projects related to battery technology have received funding amounting to ₹5.76 crore, while 4 projects worth ₹9.30 crore have been funded under the S&T-PRISM component.
Furthermore, the Ministry of New and Renewable Energy (MNRE) is advancing the “Renewable Energy Research and Technology Development Programme (RE-RTD)”, which aims to develop homegrown technologies for renewable energy and energy storage. This program offers up to 100% funding for government and non-profit organizations and up to 70% for private sectors, fostering innovations across the industry.
In total, the Anusandhan National Research Foundation (ANRF) has financed 236 projects focused on various battery technologies, reinforcing India’s commitment to advancing its capabilities in renewable energy and critical mineral production.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
