New Delhi, November 16 (IANS). India has set an ambitious target of meeting 50 percent of its primary energy requirement from renewable energy by 2030. With this, the demand for lithium-ion batteries in the country is expected to increase rapidly to 54 gigawatt hours (GWh) by fiscal year 2027 and to 127 gigawatt hours by fiscal year 2030.
Currently, the domestic lithium-ion battery storage demand of 15 gigawatt hours is almost entirely met by imports of lithium-ion cells and batteries.
India fulfills its lithium ion battery needs through imports. CareAge Ratings expects the country’s import requirement for batteries to reduce to 20 percent by fiscal year 2027. However, demand will continue to grow due to large-scale production of integrated capacity for lithium-ion battery storage.
The report notes that demand growth is primarily driven by increased EV penetration and decarbonization of the electricity grid, supported by ambitious government targets and policies/incentives from both the central and state governments.
The government is focusing on faster adoption of electric vehicles and manufacturing scheme (FAME), VDF scheme for battery energy storage systems, which have helped in reducing the cost of EVs and BESS, thereby boosting demand.
The Center has set a target of achieving 30 per cent EV penetration rate as a percentage of annual sales by 2030.
India has already allocated 40 GWh of integrated battery capacity under the PLI scheme, with the remaining 10 GWh expected to be allocated soon.
Additionally, existing traditional battery manufacturers in India and some other companies are expected to install battery capacity outside the plan.
Hardik Shah, director, CareEdge Ratings, said demand for lithium-ion battery storage in India is expected to increase, primarily linked to migration towards EVs and renewable energy storage needs.
As a result, India’s dependence on imports is expected to decline sharply to 20 per cent by FY27 from almost total dependence at present, due to the arrival of giga-size integrated battery capacity in India.
–IANS
SKT/AS
