India’s installed battery manufacturing capacity is projected to increase up to 120 GWh in the next three to four years to support the growing adoption of electric vehicles and grid-scale storage in the country, according to Hanif Qureshi, additional secretary, Ministry of Heavy Industries. Industry sources estimate that this battery manufacturing capacity addition could see an investment in the range of US$10-12 billion.
“Government is supporting 50 GWh capacity and we expect another 60-70 GWh which other companies are coming up with. So, the country will have a capacity of 110-120 GWh perhaps 2027 or 2028, or maybe earlier,” Qureshi said while speaking at the EV Expo in Delhi today.
In 2021, the government announced a Rs 18,100-crore production-linked incentive (PLI) scheme to set up advanced chemistry cell (ACC) manufacturing facilities in India with a target of achieving 50GWh manufacturing capacity.
ACC batteries are a new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. It is largely used in electric mobility.
Currently, ACC battery manufacturing is relatively small in India. Domestic battery manufacturing is expected to aid electric vehicle adoption and localise the supply chain. The high cost of acquisition, primarily due to higher battery cost, is seen as a major hurdle in electric vehicle adoption in the country.
The government has already 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 expected to start operations at its Giga factory in Krishnagiri, Tamil Nadu, with a cumulative capacity of 1.4 GWh by the end of March and expand it to 20 GWh by 2026.
The government is in the process of awarding another 10GWh capacity under the PLI scheme and has recently invited bids to set up battery manufacturing facilities for that. The remaining 10GWh capacity under the scheme will be focused towards grid-scale storage and the Heavy Industries Ministry is in touch with the Ministry of New & Renewable Energy for that, Qureshi added.
In addition, Amara Raja Batteries has started the construction of its giga factory in Telangana for lithium cell and battery packs with a capacity of up to 16 GWh and 5 GWh, respectively. The factory is expected to start operations by the end of 2025.
GODI India is also setting up a 12.5 GWh giga factory in Telangana, while International Battery Company is expected to commence operations at its giga factory in Bengaluru next year with a targeted capacity of 10 GWh by 2028.
Niti Aayog has estimated India’s annual battery demand, combining electric vehicles, grid-scale and consumer electronics, to be around 250 GWh by the end of this decade with 40 percent coming from electric vehicles.