India’s demand for Advanced Chemistry Cell (ACC) batteries is poised for exponential growth over the next two decades, rising from 28 GWh in 2025 to more than 700 GWh by the mid-2040s, according to a new report by the India Energy Storage Alliance (IESA). The findings highlight the scale of opportunity for domestic battery manufacturing as the country accelerates its shift toward electric mobility and renewable energy storage.
Roadmap for a Self-Reliant Battery Ecosystem
IESA unveiled the report, Vision 2047: India’s Roadmap for a Self-Reliant Battery Ecosystem, at the India Battery Manufacturing and Supply Chain Summit (IBMSCS) 2026. The study outlines a strategic blueprint for building local manufacturing capacity, strengthening supply chains, and reducing import dependence, while supporting India’s broader clean energy and industrial ambitions. Importantly, the report positions battery storage as a cornerstone of India’s Viksit Bharat Vision 2047 and its climate commitments.
LFP Chemistry to Dominate Future Demand
Looking ahead, the report projects Lithium Iron Phosphate (LFP) batteries and their variants will account for more than 60 per cent of total battery demand by 2047. This dominance will likely stem from several advantages, including lower costs, enhanced thermal stability, improved safety, and longer life cycles — making LFP particularly suitable for electric vehicles (EVs) and stationary energy storage systems. As a result, manufacturers are expected to increasingly prioritise LFP-based technologies to meet both mobility and grid-storage requirements.
Collaboration Key to Scaling India’s Energy Storage Market
Speaking at the launch, Rajesh Kulhari, Joint Secretary, Ministry of Renewable Energy, stressed that India’s energy storage ambitions will require coordinated action across the ecosystem. “It’s time for policy makers, regulators, utilities, financiers, manufacturers, developers and researchers to come together,” he said, underscoring the need for strong public-private collaboration. Such partnerships, he noted, will be critical to scaling infrastructure, mobilising investments, and accelerating technology deployment.
A Strategic Opportunity for Domestic Manufacturing
Debmalya Sen, President of IESA, described the growing battery demand as both an economic opportunity and a strategic necessity. “India is at a critical juncture in its energy transition journey. Our analysis shows that the rapidly growing demand for batteries presents both an enormous opportunity and a strategic imperative for building domestic manufacturing capabilities,” he said. As reported by thehindubusinessline.com, by developing local production ecosystems, India can strengthen energy security, and position itself as a global hub for battery manufacturing and supply chains.
