1 week ago
India’s Battery Costs Competitive, But Manufacturing Must Scale
India can make batteries at a lower cost than Japan and South Korea.
Only China is considered a more competitive major manufacturing location.
However, India does not yet make enough battery cells locally.
Its factories may initially produce cells that cost more than imported ones.
This is because factories are not yet large enough and suppliers and financing systems are still developing.
India has announced many new factories, but some projects face delays and financial challenges.
India also relies on technology and materials linked to China and South Korea.
Experts say India may need 10 to 15 years to become self-sufficient in battery cells.
In the meantime, making battery packs and other downstream equipment could be a practical opportunity.
India has a 154% cost advantage over Japan and a 9% advantage over South Korea, ranking second only to China.
Locally manufactured battery cells may cost 25–40% more than imports in the near term.
Domestic cell production represents less than 1% of India’s approximately 260 GWh 2026 demand pipeline.
India has 2 GWh of commissioned cell capacity, compared with China’s 2,695 GWh.
More than 226 GWh of Indian cell capacity has been announced through 2035, but delays and technology dependence remain concerns.
- Who
- India’s battery manufacturing sector, assessed by Wood Mackenzie, with comments from director Ankita Chauhan.
- What
- India is globally cost-competitive for battery manufacturing but must expand cell production and reduce import dependence.
- Where
- India, with comparisons to Japan, South Korea, and China.
- When
- The report was released on Thursday; its projections cover 2026 and development through 2035.
- Why
- India must increase domestic production to meet its projected battery demand and build a more self-sufficient industry.
Competitive Potential
Manufacturing Constraints
Global cost position
Competitive Potential
Wood Mackenzie says India is the second-most competitive major manufacturing destination after China, with cost advantages over Japan and South Korea.
Manufacturing Constraints
The report says locally produced cells may still cost 25–40% more than imported cells in the near term because of limited scale, financing costs, and an underdeveloped supplier ecosystem.
Industry expansion
Competitive Potential
India has announced more than 226 GWh of cell capacity through 2035, and downstream products such as battery packs, containers, and EMS are described as commercially attractive areas for localisation.
Manufacturing Constraints
Execution delays, financial viability challenges, and reliance on Chinese and Korean technology licensors could limit the speed of expansion.
Domestic self-sufficiency
Competitive Potential
India’s battery-storage ambitions are described as credible, with cell manufacturing expected to develop progressively over the next two to five years.
Manufacturing Constraints
Current domestic production is below 1% of the 2026 demand pipeline, while full refining capabilities are expected to take more than ten years to establish.
Key facts
- Cost position
- India has a 154% cost advantage over Japan and a 9% advantage over South Korea.
- 2026 demand pipeline
- Approximately 260 GWh from competitive tenders.
- Domestic production share
- Less than 1% of the 2026 demand pipeline.
- Commissioned capacity
- India has 2 GWh of commissioned cell manufacturing capacity as of 2026.
- Announced capacity
- More than 226 GWh of cell capacity has been announced for construction through 2035.
- China’s capacity
- China has 2,695 GWh of cumulative cell manufacturing capacity.
- Self-sufficiency timeline
- India is estimated to be 10 to 15 years from a globally competitive, self-sufficient cell industry.
Quotes
Ankita Chauhan, director, Wood Mackenzie
Senior analyst at market research firm Wood Mackenzie
“"Cell manufacturing is expected to develop progressively with imported inputs over the next two to five years, while full refining capabilities will take more than ten years to establish."”
freepressjournal.in
thehansindia.com
“"The near‑term opportunity lies in downstream components such as containers, EMS, and battery packs, where localisation is both technically feasible and commercially attractive."”
freepressjournal.in
Sources
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