India is rapidly building a domestic battery chemicals ecosystem as demand for advanced chemistry cells (ACC) accelerates, according to a report by Nuvama.
The brokerage expects India’s ACC demand to surge from 40 gwh in 2025 to around 700 gwh by 2030, registering a 39% CAGR, followed by a 27% CAGR between 2030 and 2035. Electric vehicle (EV) batteries are projected to grow at an annual rate of 35%, while battery energy storage systems (BESS) will be the fastest-growing segment with a 78% CAGR during 2025-30.
To support this growth, the government’s ₹18,100 crore Production Linked Incentive (PLI) scheme aims to establish 50 gwh of domestic cell manufacturing capacity. Additionally, more than 10 manufacturers have announced plans to set up nearly 178 gwh of battery manufacturing capacity, boosting demand for battery chemicals and materials.
The report also highlighted the role of the National Critical Mineral Mission in strengthening domestic exploration, processing, and recycling of key minerals such as lithium, nickel, cobalt, and graphite.
Nuvama expects lithium iron phosphate (LFP) batteries to remain the dominant chemistry globally due to their lower cost, enhanced safety, and longer life. This trend is likely to drive demand for iron phosphate, graphite, conductive carbon black, carbon nanotubes, and electrolytes, while moderating long-term cobalt demand.
Although India continues to rely on imports for critical minerals, domestic production of cathode and anode materials, electrolytes, conductive additives, and battery cells is expanding. Emerging technologies, including silicon-carbon anodes, LMFP, sodium-ion, and solid-state batteries, are also expected to create new growth opportunities.
According to Nuvama, rising EV adoption, renewable energy expansion, and energy storage investments position India’s battery materials industry for sustained long-term growth.
