India’s operational battery energy storage manufacturing capacity is heavily weighted toward downstream manufacturing, which accounts for 92% of the total, while cell manufacturing represents just 8%.

Downstream capacity includes battery packs, containers, and integrated energy storage systems. The significant gap between cell and downstream manufacturing underscores India’s continued dependence on imported battery cells, materials, and specialized equipment.

India has a significant battery storage manufacturing pipeline, with substantial capacity under construction and announced. However, only 21.6% of total identified operational and pipeline capacity is currently operational. Cell manufacturing remains at an early stage, with most identified capacity yet to become operational.

Existing manufacturers accounted for 47% of India’s identified manufacturing capacity across operational and planned facilities, while new entrants accounted for 53%. Lithium-based chemistries dominated capacity across cell and downstream manufacturing.

Battery systems made up more than half of utility-scale energy storage project capital expenditure (CAPEX) in the second quarter (Q2) of 2026, with cells accounting for a substantial share of battery system costs. Cell pricing and sourcing remain central to project economics and the competitiveness of domestic manufacturers.

Government initiatives are helping expand domestic cell manufacturing. The Production Linked Incentive (PLI) program for Advanced Chemistry Cell manufacturing has an allocation of ₹181 billion to support 50 GWh of capacity, plus an additional 5 GWh for niche technologies. Of the projects receiving active support, 6.4 GWh is operational, and 28.6 GWh is under construction.

A 20% local-content requirement also applies to projects supported by the Viability Gap Funding (VGF) program. However, eligible downstream components and services can meet the requirement without using domestically manufactured cells, limiting its direct effect on domestic cell demand.

Key Highlights from Energy Storage Manufacturing Ecosystem Report:

• India’s identified cell manufacturing capacity pipeline totaled 110 GWh as of September 2026.
• Downstream manufacturing accounted for 92% of operational capacity, compared with 8% for cells.
• Gujarat accounted for 51% of manufacturing capacity under construction, followed by Maharashtra at 20%.
• Existing manufacturers represented 47% of identified operational and planned capacity, while new entrants accounted for 53%.
• Among projects receiving active PLI support for cell manufacturing, 6.4 GWh were operational, and 28.6 GWh were under construction.

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