The government of India is gearing up to introduce an Approved List of Battery Manufacturers (ALBM) within the current financial year. The move forms a key part of the government’s strategy to scale domestic battery production, reduce import dependence, and strengthen the country’s clean energy ecosystem.
ALBM to Align Procurement with Localisation Goals
The proposed ALBM framework will identify eligible suppliers for government-backed energy storage projects, ensuring that procurement policies actively support domestic manufacturing. By doing so, the government aims to align large-scale battery deployment with its broader “Make in India” and localisation objectives. Notably, the mechanism mirrors the solar sector’s approved list model, where only vetted manufacturers are permitted to participate in public projects. Similarly, under ALBM, only approved battery producers will qualify for government tenders.
Phased Transition to Support Industry Adaptation
To ensure a smooth rollout, policymakers are expected to introduce draft localisation norms alongside the ALBM. These norms will likely include a phased transition period, allowing developers and suppliers sufficient time to adapt to domestic sourcing requirements. As a result, the industry can gradually shift from import reliance to homegrown manufacturing capabilities without disrupting ongoing projects.
$38 Billion Investment Opportunity in Energy Storage
The timing of the initiative is critical. India is targeting the deployment of approximately 47 GW of battery energy storage capacity, which is expected to attract investments worth nearly $38 billion. The expansion will play a crucial role in enhancing grid stability, supporting renewable energy integration and enabling round-the-clock power supply.
Reducing Supply Chain Risks and Import Dependence
The ALBM will act as a non-tariff regulatory filter, restricting participation in public tenders to approved manufacturers. This approach directly addresses supply chain vulnerabilities, particularly India’s heavy reliance on imported battery components—most of which currently come from China. By prioritising domestic players, the policy aims to mitigate geopolitical and supply risks while fostering a resilient local ecosystem.
Focus on Advanced Chemistry Cells and Upstream Capabilities
In the near term, the government will prioritise building capacity in advanced chemistry cell (ACC) manufacturing along with key upstream components. To support this, additional measures are expected, including demand aggregation to ensure stable market demand, infrastructure development to support large-scale production and workforce skilling initiatives to build technical expertise. Together, these steps will accelerate ecosystem readiness and attract further investments into the sector.
Part of India’s Long-Term Battery Vision 2047
The ALBM initiative is a cornerstone of the broader India Battery Vision 2047, spearheaded by the ministries of power and heavy industries. The roadmap outlines a comprehensive strategy covering critical mineral sourcing, battery chemistry innovation, manufacturing scale-up, deployment across sectors and recycling and circular economy. India ultimately aims to build nearly three
terawatt-hours (TWh) of battery capacity by 2047, catering to applications in electric mobility, grid storage, and consumer electronics.
A Strategic Shift Towards Deep Localisation
As reported by manufacturingtodayindia.com, India’s policy direction clearly signals a progressive shift toward deeper localisation, extending beyond assembly to upstream components and raw materials. In this context, the ALBM will serve as a foundational framework, helping structure and formalise the domestic battery manufacturing ecosystem while positioning India as a global hub for energy storage solutions.
