India's rechargeable battery cells demand to reach 39% CAGR by 2030: Report
New Delhi, July 24
India's demand for Advanced Chemistry Cells will grow at a compound annual growth rate of 39 per cent between 2025 and 2030, according to a report by Nuvama.
Advanced Chemistry Cells (ACC) refer to next-generation rechargeable battery cells, including Lithium-ion (LFP, NMC, LMFP, NCA), Sodium-ion, Solid-state, and other advanced chemistries.
The report also noted that electric vehicle battery demand will expand at a CAGR of around 35 per cent during FY25-30. Simultaneously, the battery energy storage system (BESS) sector will witness a growth rate of 78 per cent CAGR over the same period.
"Today, lithium-ion accounts for more than 95% of global ACC demand," the report added.
The report highlighted that India is transitioning from an importer of battery materials toward establishing a domestic battery chemicals ecosystem.
This domestic shift receives support from key government policy measures. The government launched the Rs 18,100 crore Production Linked Incentive (PLI) Scheme for ACC Batteries to establish 50 GWh (gigawatt-hour) of domestic cell manufacturing capacity.
Alongside the government initiative, commercial players expanded their projects significantly. The report stated that "over 10 manufacturers have announced around 178 GWh of battery manufacturing capacity, creating significant downstream demand for battery chemicals."
To secure the required raw materials for these developments, state policy addressed supply chains directly. The report mentioned that "The National Critical Mineral Mission (NCMM) has been introduced to strengthen domestic exploration, processing and recycling of critical minerals such as lithium, nickel, cobalt and graphite."
On the international front, the report mentioned a distinct growth trajectory for global markets compared to India's domestic pace.
Global demand for ACC will likely grow at a CAGR of around 20 per cent during CY25-30, before moderating to approximately 8 per cent during 2030-35.
Global supply of ACC will grow at a CAGR of 10 per cent between 2025 and 2030, and will later slow to a 4 per cent CAGR between 2030 and 2035.
This anticipated slowdown follows a period of rapid expansion. Between 2020 and 2026, global demand grew at a CAGR of 37 per cent, while global supply increased at a CAGR of 34 per cent.
— ANI
Reader Comments
As someone working in renewable energy, this is exciting news. The 78% CAGR for BESS is phenomenal—battery storage is the missing link for solar and wind. But I'm a bit skeptical about the timeline. Global supply is growing at 10% CAGR, while India's demand is at 39%. Won't that create a massive import dependency until domestic production scales up?
Good to see the government focusing on critical minerals. But we need to be careful about environmental impact—lithium mining and battery disposal have serious ecological costs. Are we recycling enough? The NCMM should include strong recycling mandates. Otherwise, we'll just swap oil dependency for mineral dependency. 🌍
Comparing global 20% CAGR vs India's 39%—the gap is huge. It shows India is playing catch-up, but also that there's massive investment potential here. I'd be keen to know which battery chemistry (LFP vs NMC vs solid-state) will dominate in the Indian context. Temperature tolerance and cost will be key factors. Anyone have insights?
A 78% CAGR for BESS is mind-blowing! This could transform our power grid, especially for rural areas with unreliable supply. But I worry about cost—batteries are still expensive. Without subsidies, will the common man benefit? Also, the PLI scheme is ₹18,100 crore—hope it reaches manufacturers efficiently without corruption. 🤞
Interesting data, but I'm cautious. The 2020-2026 CAGR of 37% demand and
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