India’s Energy Storage Revolution
- TheGreen Bein
- Mar 4
- 3 min read
The Union Budget 2025-26 introduced several measures to bolster domestic manufacturing in the energy sector. Finance Minister Nirmala Sitharaman announced the National Manufacturing Mission, targeting the production of solar photovoltaic (PV) cells, electric vehicle (EV) batteries, wind turbines, and grid-scale batteries. mission aims to provide policy support, execution roadmaps, and a governance framework to enhance domestic value addition in clean technology manufacturing.
India's commitment to sustainable energy has positioned it at the forefront of global efforts to integrate renewable sources into its energy mix. A critical component of this transition is the development of robust energy storage solutions, essential for managing the intermittency of renewable energy sources like solar and wind. Recent policy initiatives, budgetary allocations, and strategic industry moves underscore India's dedication to advancing its energy storage capabilities.
Manufacturing Opportunities and Industry Participation
India's energy storage landscape is witnessing active participation from both established companies and new entrants. Exide Industries, a leader in lead-acid battery manufacturing, has ventured into lithium-ion technology through its subsidiary, Exide Energy Solutions Limited (EESL). EESL is setting up a 12 gigawatt-hour (GWh) green-field cell manufacturing plant in Bengaluru, Karnataka, to cater to India's EV market and stationary applications.
Similarly, the Amara Raja Group has launched its first giga factory in Mahbubnagar, Telangana, focusing on lithium-ion cell and battery pack manufacturing. The facility boasts an initial capacity of 16 GWh for lithium cells and 5 GWh for battery packs. In June 2024, Amara Raja inked a licensing deal with China's Gotion for lithium-ion cell manufacturing, highlighting the importance of strategic partnerships in scaling up production capabilities.
Competition from Chinese Battery Manufacturers
Chinese companies, particularly Contemporary Amperex Technology Co. Limited (CATL), have made significant advancements in battery technology. CATL's unveiling of sodium-ion batteries, which can discharge normally at temperatures as low as -40°C, represents a notable technological breakthrough.
In response, Indian companies are accelerating their research and development efforts. For instance, KPIT Technologies, in collaboration with the Indian Institute of Science Education and Research in Pune, introduced India's first sodium-ion battery technology. This innovation is expected to reduce battery costs for EVs by 25-30%, offering advantages such as a longer lifespan, faster charging, and better performance in sub-zero temperatures.
Pros and Cons of India's Energy Storage Future
Pros:
Economic Growth and Job Creation: The focus on domestic manufacturing of energy storage solutions is poised to generate employment opportunities and stimulate economic growth. Initiatives like the National Manufacturing Mission are expected to strengthen the entire manufacturing ecosystem, from small and medium enterprises (SMEs) to large-scale industries.
energy.economictimes.indiatimes.com
Technological Advancements: Collaborations between Indian companies and international partners are facilitating the transfer of advanced technologies, enhancing India's capabilities in energy storage solutions.
Environmental Benefits: Enhanced energy storage infrastructure will enable greater integration of renewable energy sources, reducing reliance on fossil fuels and contributing to India's climate goals.
Cons:
Skills Shortage: The rapid expansion of the renewable energy sector is facing challenges due to a significant skills shortage. A lack of government funding and insufficient production incentives for local manufacturers are hindering progress, threatening India's clean energy objectives and international climate commitments.
Global Competition: Chinese battery manufacturers, with their advanced technologies and economies of scale, pose stiff competition to Indian companies. Continuous innovation and strategic partnerships are essential for Indian manufacturers to remain competitive.
Resource Dependence: Despite policy measures to secure critical minerals, India's reliance on imports for raw materials like lithium and cobalt could pose supply chain vulnerabilities. Developing domestic sources and recycling capabilities is crucial to mitigate this risk.
Conclusion
India's proactive approach to enhancing its energy storage capabilities reflects a strategic vision to support its renewable energy ambitions. While challenges such as skills shortages and global competition exist, policy support, industry initiatives, and technological innovations are paving the way for a resilient and sustainable energy future. Continued focus on developing domestic manufacturing, securing critical resources, and fostering international collaborations will be key to realizing India's energy storage potential.
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