India faces cell manufacturing gap in battery ecosystem

India is experiencing a significant imbalance in its battery manufacturing sector, with a heavy concentration in downstream assembly rather than cell production. According to Mercom India’s Energy Storage Manufacturing Ecosystem Report, downstream manufacturing—which includes battery packs, containers, and integrated energy storage systems—accounts for 92% of the country's total operational capacity, totaling approximately 86 GWh. In contrast, cell manufacturing represents only 8% of the capacity.

While India has built around 60 GWh of capacity to assemble battery packs, domestic cell production remains minimal, with only about 1 GWh produced by the end of 2025. This reliance on imports is substantial; approximately three-quarters of the lithium-ion batteries used in Indian electric vehicles are sourced from China. The import bill for these components has risen from roughly USD 384 million in FY2019 to over USD 3 billion in FY2025.

Demand for advanced chemistry cells is projected to exceed 125–150 GWh by FY2031, driven by electric mobility and renewable energy storage. To meet this, the Central Electricity Authority projects a requirement of 236 GWh of Battery Energy Storage Systems (BESS) by 2031–32. Although significant cell manufacturing capacity has been announced or is under construction, the primary industrial challenge remains converting these planned projects into stable, cost-competitive commercial production.