1 week ago
India Faces Decade-Long Path to Battery Self-Sufficiency
India wants to make more of its own batteries instead of depending heavily on imports.
Right now, it has only a small amount of battery-cell production compared with the batteries it may need.
Many new factories have been announced, but some could face delays or financial problems.
Making every part of a battery-storage project in India could make it about 30% more expensive.
Indian-made battery cells may also cost 25-40% more than imported cells at first.
Experts say India can begin by making simpler parts, such as battery packs, containers and control systems.
China currently has much more battery-making capacity than India.
Building a fully self-sufficient industry could take 10-15 years.
India has only 2 GWh of commissioned cell capacity in 2026, versus a 260 GWh battery-demand pipeline.
More than 226 GWh of Indian cell capacity has been announced through 2035, but delays and financing challenges threaten execution.
Requiring 100% domestic content in grid-scale battery storage could raise capital costs by about 30%.
Locally made cells may cost 25-40% more than imports, while downstream components could be localised within two to three years.
Wood Mackenzie estimates India could need 10-15 years to build a globally competitive, self-sufficient battery industry.
- Who
- India’s battery industry, supported by government domestic-content policies, and Wood Mackenzie analysts.
- What
- India may remain 10-15 years away from a globally competitive, self-sufficient battery-cell industry; full domestic content could raise battery-storage project capex by about 30%.
- Where
- India, compared with major battery-manufacturing destinations including China, Japan and South Korea.
- When
- The assessment covers capacity in 2026, announced projects through 2035, and localisation expected over the next two to five years.
- Why
- India is expanding grid-scale battery storage while trying to close gaps in manufacturing capacity, technology, financing and domestic supply chains.
Localisation and industrial opportunity
Cost and execution concerns
Domestic-content targets
Localisation and industrial opportunity
Greater domestic content could build Indian manufacturing capabilities and support the country’s battery-storage ambitions.
Cost and execution concerns
Moving from below 20% domestic content to 100% could increase project capital costs by about 30%.
Near-term manufacturing strategy
Localisation and industrial opportunity
Wood Mackenzie says containers, energy-management systems, SCADA and battery packs can be localised within two to three years.
Cost and execution concerns
Cell manufacturing still depends on imported inputs, foreign technology licensors and a limited supplier ecosystem.
Long-term competitiveness
Localisation and industrial opportunity
India has a reported cost advantage over Japan and South Korea, creating an opportunity to become a major manufacturing destination.
Cost and execution concerns
Execution delays, financing challenges and insufficient factory scale could prevent India from capturing that opportunity quickly.
Key facts
- Commissioned capacity
- India had 2 GWh of commissioned battery-cell manufacturing capacity in 2026.
- Demand pipeline
- Competitive tenders represented approximately 260 GWh of battery demand.
- Announced capacity
- More than 226 GWh of cell capacity had been announced for construction through 2035.
- Full localisation cost
- Increasing domestic content from below 20% to 100% could add about 30% to capex for a benchmark 100-MW, two-hour BESS project.
- Cell cost premium
- Locally manufactured cells are expected to cost 25-40% more than imported cells.
- Manufacturing scale
- A 5-GWh facility operates at an estimated negative 10% EBITDA; breakeven is reached at 10 GWh, while positive margins require at least 20 GWh.
- China comparison
- China has 2,695 GWh of cumulative cell manufacturing capacity and controls 85-98% of global capacity across key battery materials.
Quotes
Priya Shrivastava
Senior research analyst, Wood Mackenzie
“"India’s battery storage ambitions are credible, but the gap between policy intent and operational capacity is wide,"”
financialexpress.com
“"India’s cost position is genuinely competitive in a global context,"”
financialexpress.com
Sources
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