Short : India is expected to see its lithium-ion battery demand reach 54 GWh by 2027, driven by the growth of electric vehicles, renewable energy integration, and strong government initiatives to support local manufacturing and sustainability efforts in the energy sector.
Detail : Decarbonisation of grids is driving demand.
Demand for lithium-ion battery storage in India is expected to expand to 54 gigawatt-hours (GWh) by fiscal year 2027 from currently around 15 GWh driven by the push to decarbonise electricity grids and the increasing penetration of electric vehicles (EV).
According to CareEdge Ratings, this level may even reach 127 GWh by 2030.
Domestic demand is currently met through imports of lithium-ion cells/batteries. This is expected to decline sharply to 20% by 2027 from near-full dependence presently, due to giga-size integrated battery capacities coming onstream.
CareEdge said government policies and incentives, including the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme and state subsidies, are expected to drive the development of giga-scale lithium-ion battery manufacturing.
India has allocated 40 GWh of integrated battery capacities under PLI, with the remaining 10 GWh expected to be awarded shortly. Additionally, existing conventional battery manufacturers and few other companies in India are expected to set up battery capacities outside of the scheme.
