India's EV Battery Demand Projected to Scale from 28 GWh in 2025 to Over 700 GWh by 2040: IESA Report

Hyderabad, February 5, 2026: India's demand for Advanced Chemistry Cell (ACC) batteries is set to witness explosive growth over the next two decades, scaling from 28 GWh in 2025 to well over 700 GWh by the mid-2040s, according to a comprehensive new report titled "Vision 2047: India's Roadmap for a Self-Reliant Battery Ecosystem" released today at the India Battery Manufacturing and Supply Chain Summit (IBMSCS) 2026, a two-day flagship event organized by India Energy Storage Alliance (IESA) in Hyderabad. Shri Rajesh Kulhari, Joint Secretary, Ministry of Renewable and Energy; S.K. Sharma, Director, ITE & C, Telangana Government; Vijayanand Samudrala, President Amara Raja; Anjani Mourya, Founder & MD, Altmin; Debmalya Sen, President, IESA and Vinayak Walimbe, MD, Customized Energy Solutions (CES) & IESA were also present.  

The report, which provides a detailed assessment of India's battery value chain through 2047, reveals that the country's transition to electric mobility and large-scale energy storage will be central to achieving its climate commitments, the Viksit Bharat Vision 2047. The study adopts two forecast scenarios: a Business-as-Usual (BAU) case and a more ambitious Viksit Bharat Pathway (VBP) case, projecting that total battery demand could reach between 1.3 TWh and 1.9 TWh by 2047.

Rajesh Kulhari, Joint Secretary, Ministry of Renewable and Energy, said, “India’s energy storage revolution calls for collaboration across the ecosystem. It’s the time for policy makers, regulators, utilities, financiers, manufacturers, developers and researchers to come together. Platforms such as IBMSCS summit are essential for sharing best practices, aligning strategies and co-creating solutions that accelerate deployment and innovation.”

The summit has brought together over 600 delegates, 50+ industry leaders, and representatives from 250+ companies, including Attero, Rubamin, Toshiba, Luminous, and leading research institutions such as CMET (Centre for Materials for Electronics Technology) and the Indian Institute of Science. The event also features significant international participation from China, Japan, Korea, Finland, Australia, Germany, and the USA, reflecting the global significance of India's battery ecosystem development. The report release was followed by panel discussions and technical sessions focused on addressing critical gaps and fostering collaboration across the ACC value chain.

"India stands at a critical juncture in its energy transition journey. Our analysis shows that the rapidly growing demand for batteries presents both an enormous opportunity and a strategic imperative for building domestic manufacturing capabilities," said Debmalya Sen, President, India Energy Storage Alliance (IESA). "To truly realise the Viksit Bharat vision, we must move beyond cell assembly to develop a complete ecosystem spanning raw materials, components, and recycling. "

The report highlights that EVs are projected to account for approximately 60% of total battery demand in 2025, rising to around 74-77% by 2047. India's EV market is expected to grow at a CAGR exceeding 30% through 2035, led by electric two- and three-wheelers, followed by passenger vehicles and commercial fleets. Simultaneously, stationary energy storage deployment is set to accelerate post-2030, driven by renewable energy integration and grid balancing requirements, growing at over 23% CAGR through 2035.

S.K. Sharma, Director, ITE & C, Telangana Government, said,Telangana is working to create a robust ecosystem for battery manufacturers and investors. We already have large manufacturers such as Amara Raja and Altmin, and many other major players are considering Telangana as their manufacturing base. We are always open to investors and policymakers who wish to advise us or recommend aspects that would facilitate business operations in Telangana and support the state's continued growth.

The report also projects Lithium Iron Phosphate (LFP) and its variants to account for more than 60% of total battery demand by 2047, driven by cost advantages, thermal stability, and safety. NMC chemistries will continue to play a role in premium applications requiring higher energy density, while emerging alternatives like LMFP, sodium-ion, and flow batteries will gain traction in specific use cases. IESA emphasises that achieving Vision 2047 will require moving beyond isolated incentives toward a coordinated, performance-led ecosystem strategy, one that aligns long-term demand visibility, hybrid incentives, upstream material localisation, and supply-chain security. Only such an integrated approach can enable India to transition from import dependence to global leadership in advanced battery manufacturing.