ACC batteries are set to become the cornerstone of India’s energy transition, with demand projected to surge from about 28 GWh in 2025 to over 700 GWh by the mid-2040s, according to a recent report by the India Energy Storage Alliance (IESA). Under Business-as-Usual and Viksit Bharat scenarios, total battery demand could scale to 1.3–1.9 TWh by 2047, reflecting the scale of transformation underway across mobility and power systems.
India’s appetite for Advanced Chemistry Cell (ACC) batteries is set to surge at an unprecedented pace, signalling the scale of transformation underway in the country’s clean energy and mobility ecosystem. Demand is projected to skyrocket from roughly 28 GWh in 2025 to over 700 GWh by the mid-2040s, according to a new report by the India Energy Storage Alliance (IESA), unveiled at the India Battery Manufacturing and Supply Chain Summit (IBMSCS) 2026.
The findings paint a compelling picture of India’s rapidly evolving battery value chain, mapping its growth trajectory all the way to 2047. At the heart of this expansion lies the twin engine of electric mobility adoption and grid-scale energy storage, both of which will be pivotal in powering India’s transition to a low-carbon economy.
As the country advances toward its climate commitments under the Viksit Bharat Vision 2047, ACC batteries are emerging not just as a technology component, but as a strategic industrial pillar—one that will shape domestic manufacturing, supply chain resilience, and energy security in the decades ahead.
The report outlines two demand scenarios — a Business-as-Usual (BAU) scenario and a more ambitious Viksit Bharat Pathway (VBP) scenario. Based on these projections, India’s total battery demand is expected to reach between 1.3 terawatt hours (TWh) and 1.9 TWh by 2047, highlighting the scale of growth anticipated across transport and power sectors.
Analysts noted that India’s transition in energy storage will hinge on close collaboration across the entire ecosystem. They said the rapidly growing battery demand represents both a major economic opportunity and a strategic necessity to strengthen domestic manufacturing. To fully achieve the Viksit Bharat vision, they added, India must move beyond cell assembly and build an integrated ecosystem covering raw materials, components, manufacturing, and recycling.
Electric mobility and energy storage drive demand
The report highlights that electric vehicles currently account for about 60% of total battery demand in 2025, a share that is projected to rise to nearly 74–77% by 2047. India’s electric vehicle market is projected to expand at a compound annual growth rate exceeding 30% through 2035, driven mainly by electric two- and three-wheelers, with passenger vehicles and commercial fleets following.
In parallel, deployment of stationary energy storage systems is expected to accelerate after 2030, driven by rising renewable energy penetration and increasing grid-balancing requirements. This segment is projected to grow at over 23% CAGR through 2035.
The report further noted that from a technology standpoint, Lithium Iron Phosphate (LFP) batteries and their variants are expected to dominate, accounting for more than 60% of total battery demand by 2047 due to their cost efficiency, thermal stability, and safety advantages. (notably, India is among the world’s leading importers of lithium-ion batteries, with imports valued at US$ 3.6 billion in FY2023, primarily sourced from countries such as China, South Korea, Vietnam, and Japan.)
Policy push to build a domestic acc ecosystem
Advanced Chemistry Cells (ACCs) represent a new generation of advanced storage technologies that store electrical energy in electrochemical or chemical form and convert it back into electricity whenever required. They are widely used across electric vehicles, grid stability management, rooftop solar installations, and consumer electronics. As India advances its renewable energy ambitions and targets net-zero emissions by 2070, energy storage is set to become a cornerstone of the broader energy ecosystem.
Despite rising demand, investments in Advanced Chemistry Cell (ACC) manufacturing and value addition remain limited in India, with the bulk of domestic requirements still met through imports. To curb dependence on imported ACC batteries, the government approved a Production Linked Incentive (PLI) scheme for ACC manufacturing on May 12, 2021. With a total outlay of ₹18,100 crore spread over five years, the scheme aims to create a competitive domestic ACC battery manufacturing ecosystem with a planned capacity of 50 GWh.
The PLI ACC scheme is technology-agnostic, ensuring that more advanced and efficient technologies are eligible for higher incentives. It is designed to attract large-scale investments, encourage research and development, and reduce India’s dependence on ACC imports. Under the scheme, R&D expenditure incurred by beneficiary firms is allowed to count towards investment thresholds, enabling companies to incorporate the latest technologies while implementing their projects.
Strengthening the upstream supply chain, the Union Cabinet has also approved the National Critical Mineral Mission (NCMM), following inputs from the Ministry of Mines. Launched on January 29, 2025, the mission will be implemented over seven years from 2024–25 to 2030–31. It involves a proposed government expenditure of ₹16,300 crore and is expected to attract investments of about ₹18,000 crore from public sector undertakings (PSUs) and other stakeholders. The NCMM is designed to secure a long-term and sustainable supply of critical minerals (including lithium, nickel, cobalt, manganese and graphite) while strengthening India’s critical mineral value chains, spanning mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products.
The Union Budget 2026–27 placed strong strategic emphasis on securing India’s critical mineral supply chains to support the rapid scale-up of electric mobility, battery manufacturing, and clean energy storage. The government expanded customs duty exemptions on key minerals and intermediates such as lithium, cobalt, graphite, rare earths, and select manganese inputs to lower raw material costs for domestic manufacturers. It also announced financial and policy support for setting up mineral refining and processing facilities within India, signalling a shift from import dependence toward local value addition.
Allocations were strengthened for the National Critical Minerals Mission to accelerate domestic exploration, build strategic reserves, and foster global technology partnerships, alongside continued backing for overseas asset acquisitions in mineral-rich regions like Australia, Latin America, and Africa. The Budget further encouraged battery recycling and urban mining ecosystems, positioning circular recovery of lithium, cobalt, and nickel as a long-term pillar of India’s energy transition and industrial resilience.
India’s surging battery demand signals a decisive phase in its clean energy transition. While the growth opens up significant economic and strategic opportunities, unlocking its full potential will require a deeply integrated domestic ecosystem. Sustained policy backing, accelerated investment in advanced technologies, and assured access to critical minerals will be essential to curb import reliance and realise the Viksit Bharat Vision 2047.
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Advanced Chemistry Cell (ACC) batteries and domestic capacity
FAQs
What are Advanced Chemistry Cell (ACC) batteries?
ACC batteries are advanced energy storage technologies that store electricity in chemical or electrochemical form and release it when needed. They are widely used in electric vehicles, grid-scale energy storage, rooftop solar systems, and consumer electronics.
- How fast is India’s ACC battery demand expected to grow?
India’s ACC battery demand is projected to rise from about 28 GWh in 2025 to over 700 GWh by the mid-2040s, with total battery demand reaching 1.3–1.9 TWh by 2047 under different growth scenarios. - Which sectors will drive ACC battery demand in India?
Electric vehicles will be the primary driver, accounting for nearly three-fourths of total battery demand by 2047. Stationary energy storage systems will also see strong growth as renewable energy capacity expands. - Which battery technology is likely to dominate?
Lithium Iron Phosphate (LFP) batteries and their variants are expected to dominate more than 60% of demand by 2047 due to lower costs, better thermal stability, and higher safety compared to other chemistries. - What steps is the government taking to boost domestic ACC manufacturing?
The government has introduced a ₹18,100-crore Production Linked Incentive (PLI) scheme for ACC manufacturing and launched the National Critical Mineral Mission to secure mineral supplies and strengthen the domestic battery value chain.
