Archive · 27 Aug 2026
India’s lithium battery costs remain above China amid storage expansion
India is building many large batteries to store electricity.
Most of the battery cells used for this are imported.
In July, these cells cost more in India than in China.
Shipping, taxes and other import costs helped create the difference.
Chinese battery prices also fell during the month.
India has started making more battery packs and storage containers locally.
However, making battery cells in India is still limited.
The government is offering support to encourage more domestic production.
India’s landed LFP cell prices were $62–67 per kWh in July, versus about $54.5 in China.
Freight, duties and other import-related expenses added $7–12 per kWh for Indian buyers.
China’s 314Ah LFP cell prices fell 1.4% month-on-month in July as lithium carbonate prices declined.
India commissioned about 8,236 MWh of BESS capacity during April–July FY27, including 710 MWh in July.
The government tendered the remaining 10 GWh under its 50-GWh ACC battery production-linked incentive scheme for grid storage.
- Who
- Indian battery-storage developers, importers, manufacturers and the Ministry of Heavy Industries are involved.
- What
- India’s imported lithium iron phosphate battery cells and assembled storage containers cost more than comparable products in China.
- When
- The price comparison covers July; deployment figures cover April–July FY27.
- Where
- India and China, with the costs compared for India’s grid-scale battery-storage market.
- Why
- Freight, duties and other import-related expenses raise Indian landed costs, while limited domestic cell manufacturing keeps the industry dependent on imports.
Domestic Manufacturing
Imported Supply
Reducing battery costs
Domestic Manufacturing
The report says local cell and pack manufacturing could help developers avoid import surcharges and reduce reliance on Chinese supply.
Imported Supply
Imported cells remain important because commercial cell manufacturing in India is still limited.
Meeting storage demand
Domestic Manufacturing
India is expanding downstream production, with about 6.35 GWh of capacity becoming operational in July.
Imported Supply
Rapid BESS deployment means Indian developers continue to depend substantially on imported cells and related supply chains.
- Indian LFP cell cost
- $62–67 per kWh in July
- Chinese LFP cell cost
- About $54.5 per kWh in July
- India’s import premium
- Approximately $7–12 per kWh, or 13–23% above China’s after-tax prices
- Chinese cell price change
- 314Ah LFP cell prices fell 1.4% month-on-month in July
- India BESS commissioning
- About 8,236 MWh during April–July FY27; July alone accounted for about 710 MWh
- Domestic downstream capacity
- About 6.35 GWh became operational in July
- ACC incentive tender
- The remaining 10 GWh of the 50-GWh scheme was tendered for grid-scale storage
- Domestic-value requirements
- 25% within two years and 40% within five years