India’s Battery Manufacturing Push Gains Momentum as Energy Storage Demand Soars

India’s battery manufacturing ecosystem is set for significant expansion as demand for energy storage systems gathers pace, a development that could also strengthen the country’s electric vehicle supply chain. A report released by the India Energy Storage Alliance (IESA) and Customised Energy Solutions (CES) projects that India’s energy storage requirement will rise to 888 GWh by 2035-36 from around 1 GWh today, underscoring the scale of investment expected across the battery value chain.

The report, titled India BESS Market Review, was released at the opening of India Energy Storage Week (IESW) 2026 in New Delhi. While it focuses on battery energy storage systems (BESS) for the power sector, the expansion of domestic battery manufacturing capacity is also expected to support India’s broader battery ecosystem, which serves both stationary storage and electric mobility applications.

According to the report, India’s installed BESS capacity increased more than elevenfold in just six months, rising from 0.78 GWh in December 2025 to 8.7 GWh in the first half of 2026. The country is also expected to surpass 10 GWh of installed BESS capacity by the end of the year.

The report noted that 47 GWh of energy storage tenders were floated during H1 2026, taking India’s overall ESS tender pipeline to 260 GWh. It also said that 18 BESS projects have been commissioned so far, with merchant projects accounting for around 70% of capacity additions during the first half of the year.

India’s manufacturing ambitions are also gathering pace. Current lithium-ion battery cell manufacturing capacity stands at around 2 GWh, while announced plans target approximately 110 GWh of cell manufacturing capacity by 2030. Cell, pack, and container manufacturing capacity is projected to reach between 180 GWh and 200 GWh over the same period, reflecting growing investments across the domestic battery ecosystem.

Debmalya Sen, President of IESA, said the projected 888 GWh energy storage requirement signals a new phase in India’s clean energy transition, with storage expected to play a central role in improving grid reliability and supporting renewable energy deployment.

Industry leaders participating at the event also highlighted the growing importance of energy storage. Nitin Bhatia, CEO of Radiance Renewables, said the combination of solar power and battery energy storage would be critical to future growth, while Venugopal Rao Maddisetty, Chairman and Managing Director of Pace Digitek, described energy storage as essential infrastructure for enabling renewable energy and enhancing grid resilience.

IESW 2026, organised by IESA at Yashobhoomi in New Delhi, has brought together more than 200 exhibitors, over 10,000 industry participants, and delegates from 15 countries to discuss policy, technology, and investment opportunities across the clean energy and battery sectors.

The report said that despite global supply chain volatility and higher battery prices, India’s battery energy storage market has continued to expand rapidly, supported by policy initiatives, sustained tender activity, and increasing domestic manufacturing investments.