The government has allocated 30GWh capacity to three companies under the PLI scheme for ACC battery manufacturing and is in the process of awarding an additional 10GWh capacity. The remaining 10GWh capacity under the scheme will be dedicated to grid-scale storage.
India’s battery manufacturing capacity is expected to reach up to 120 GWh in the next three to four years to meet the rising demand for electric vehicles and grid-scale storage, said Hanif Qureshi, additional secretary at the Ministry of Heavy Industries. This expansion could attract investments between $10-12 billion. The government is supporting 50 GWh capacity, and it is anticipated that an additional 60-70 GWh is expected from other companies. So, the country’s capacity could be 110-120 GWh by 2027 or 2028, or possibly earlier.
In 2021, the government launched a Rs 18,100-crore PLI scheme to establish advanced chemistry cell (ACC) manufacturing facilities in India, aiming for a 50GWh capacity. ACC batteries, used mainly in electric mobility, are advanced storage technologies that store electric energy as electrochemical or chemical energy and convert it back to electric energy as needed.
Currently, ACC battery manufacturing in India is limited. Boosting domestic battery production is expected to support electric vehicle adoption and localize the supply chain. However, high acquisition costs, primarily due to battery prices, are considered a significant barrier to electric vehicle uptake in the country.
The government has awarded 30GWh capacity under the PLI scheme to Ola Cell Technologies Pvt Ltd, ACC Energy Storage Pvt Ltd, and Reliance New Energy Battery Storage Ltd. Ola is set to begin operations at its Giga factory in Krishnagiri, Tamil Nadu, with a 1.4 GWh capacity by March’s end and expand it to 20 GWh by 2026.
The government is awarding another 10GWh capacity under the PLI scheme and has invited bids for setting up battery manufacturing facilities. The remaining 10GWh capacity under the scheme will focus on grid-scale storage, with the Heavy Industries Ministry coordinating with the Ministry of New & Renewable Energy.
Additionally, Amara Raja Batteries has started building its giga factory in Telangana for lithium cell and battery packs with capacities of up to 16 GWh and 5 GWh, respectively, and is expected to start operations by the end of 2025.
GODI India is establishing a 12.5 GWh giga factory in Telangana. At the same time, International Battery Company is expected to begin operations at its Giga factory in Bengaluru next year, aiming for a 10 GWh capacity by 2028.
Niti Aayog estimates India’s annual battery demand, including electric vehicles, grid-scale, and consumer electronics, to be around 250 GWh by the end of this decade, with 40 per cent coming from electric vehicles.
