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Battery demand is expected to rise to 260 gigawatt hours (GWh) in the accelerated scenario. This would require nearly 26 gigafactories with an average advanced battery production capacity of 10 GWh per year says a new report published by Indian government think tank NITI Aayog and the global and India offices of non-profit research group Rocky Mountain Institute (RMI).
Since India has no manufacturing plants at this scale now, developing and rapidly scaling its advanced battery manufacturing industry is expected to require focused and coordinated public-private actions.
This market assessment informs the opportunity and criticality for India’s emergence as a major global hub for advanced cells manufacturing. The recently announced production-linked incentive (PLI) scheme is the most important lever for enabling this opportunity to come to fruition. In addition to this, sustained efforts must be made beyond the scheme to ensure adequate market development for these batteries as well as to address future preparedness challenges around sustainability of the material ecosystem and adaptation to future developments in advanced energy storage technology.
Globally, the report’s authors cite BloombergNEF figures that forecast demand for energy storage at US$150 billion annually by the end of this decade. With a high penetration of EVs and stationary energy storage, India could represent 13% of that total demand, according to RMI and NITI Aayog.
The report is the first of three being produced in a series, with the next two looking at aspects of directly supporting domestic production.
View the Report
