MHI asks ARAI to localise ACC

While the Centre is promoting the use of Electric Vehicles (EVs), Ministry of Heavy Industries (MHI) has urged Automotive Research Association of India (ARAI) to localise Advanced Chemical Cell (ACC), which is the main component of the EV battery. It is currently being imported. The aim is to reduce the battery price which accounts for ~30 per cent of the total cost of an EV. With almost 70 per cent of battery material available in India, the localisation of the remaining 30 per cent will help reduce the cost of EVs in India. Talking about the Production-Linked Incentive (PLI) Scheme, Union Minister Dr Mahendra Nath Pandey pointed that it will lead to an investment of Rs.42,500 crore and will further accelerate manufacturing of components and batteries in India. “The government is providing financial support from eight to 13 per cent for auto component manufacturers and by 13-18 per cent for EV manufacturers through the scheme.” It is expected to facilitate the creation of about 7.5 lakh new advanced-level employment opportunities.