Ministry of Heavy Industries announces 10 gigawatt RFP for stationary energy storage solutions

The India Energy Storage Alliance (IESA) organized an International Summit on Lithium-Ion Batteries at the India International Centre (IIC) in New Delhi, addressing challenges and opportunities in India’s growing lithium-ion battery sector. Over 300 industry leaders attended to discuss topics such as research and development, innovation, manufacturing, supply chain, raw materials, stationary energy storage, electric mobility, recycling, and second-life applications.

The event anticipated a significant increase in battery manufacturing capacity, supported by the Indian government’s Advanced Chemistry Cell Production-Linked Incentive (ACC-PLI) scheme.

During the summit, Vijay Mittal, Joint Secretary of the Ministry of Heavy Industries, announced plans for a 10 gigawatt Request for Proposals (RFP) for grid-scale energy storage systems in collaboration with the Ministry of New and Renewable Energy (MNRE) and NITI Aayog. He noted the ministry's focus on indigenous manufacturing of chemistry cells as part of its electric vehicle (EV) initiative, aiming for net-zero emissions by 2070 and reducing reliance on imports of internal combustion engine (ICE) vehicles. The initiative began over three years ago, with more than 40 gigawatt-hours allocated to various original equipment manufacturers (OEMs) for the domestic production of advanced chemistry cells.

Several Indian national laboratories and startups are developing advanced lithium technologies, including lithium-sulfur and solid-state batteries. IESA estimates that the Indian industry needs to increase its investment fivefold over the next five years.

Debi Prasad Dash, President of IESA, highlighted the significance of the lithium-ion battery industry in achieving India’s clean energy goals. The summit aimed to shape the roadmap for the country’s transition to sustainable energy, providing a platform for collaboration and innovation among Indian and global players. The projected demand for lithium batteries in India is expected to reach 600-900 gigawatt-hours by 2032, prompting the need for appropriate safety standards considering application, temperature, and environmental conditions.

Dr. Rahul Walwalker, Chairman of IESA, pointed out that in 2020, the projected manufacturing capacity outside China was around 100 gigawatt-hours. However, this figure is expected to rise to between 1,000 and 1,500 gigawatt-hours over the next 5 to 10 years.

Many countries are seeking alternatives to relying solely on China, creating market opportunities in India with a potential supply chain of up to 2,500 gigawatt-hours. The initial target is to establish 50 gigawatt-hours of manufacturing as set by the ACC-PLI, with a vision for India to achieve a minimum of 550 gigawatt-hours of cell manufacturing by 2035.

India, as one of the world's leading importers of lithium-ion batteries, is actively adopting advanced energy storage technologies. In the fiscal year 2023, India imported lithium-ion batteries valued at $3.59 billion from countries such as China, South Korea, Vietnam, and Japan. The country has over 100 lithium battery pack manufacturing companies serving the electric vehicle, power electronics, and stationary storage sectors.