India’s battery ambitions are racing ahead—but a widening supply gap threatens to slow the charge.

 

At the recently concluded Stationary Energy Storage India (SESI) 2026 summit, industry leaders delivered a stark warning: while demand for advanced chemistry cells (ACC) is set to surge to 220–260 GWh by 2030 and a staggering 800–900 GWh by 2035, domestic capacity is lagging far behind. 

 

With only 40–50 GWh expected to be operational in the near term, India faces a looming shortfall of up to 80 GWh—forcing continued dependence on imports.

 

“India’s ACC ecosystem is at a critical growth stage, with demand for advanced chemistry cells projected at ~220–260 GWh by 2030 and ~800–900 GWh by 2035, mainly driven by electric mobility (60–70%) and stationary storage (30–40%)," said Debmalya Sen, President of India Energy Storage Alliance.

 

"However, domestic manufacturing capacity stands at ~150–180 GWh, with only ~40–50 GWh expected to be operational soon, resulting in a 60–80 GWh supply gap and continued reliance on imports for cells and key materials like cathodes, anodes, and electrolytes. 

 

"Over 80% of cell components are still imported. To address this, we need targeted support for component manufacturing, faster approvals, robust recycling, and stronger local supply chains, especially as over 30% of battery costs come from materials such as graphite and lithium. Timely execution and improved circularity are essential for long-term competitiveness."

 

The high-stakes discussion unfolded at the summit hosted by the India Energy Storage Alliance (IESA) and Customized Energy Solutions (CES), drawing over 450 industry leaders from more than 10 countries. The message was consistent and urgent: without coordinated policy action, India risks missing its moment in the global clean energy race.

 

Kumar M Founder, Smart Grid Analytics, underscored the opportunity—and the urgency. “India is uniquely positioned to shape the future of global energy storage. With our technical talent and ambitious goals, we have every opportunity to lead the way in smart, resilient power systems. 

 

"To fully realise this potential, I encourage policymakers to champion investments not only in cutting-edge hardware, but also in the intelligence, software, analytics, and digital infrastructure that turns our assets into true value creators. Equally, our success will depend on building a workforce skilled in data, automation, and cloud-based operations. 

 

"By fostering policies that nurture innovation, quality, and talent development, the government can ensure India’s energy storage sector sets new global standards for reliability and performance."

 

That workforce gap is already being felt across the value chain, with leaders agreeing that talent development will be as critical as capital investment.

 

Samir Patel, Chief, Technology and Operations, BESS Energy Division, SPML, pointed to policy momentum—but warned it’s not enough. 

 

“Over the past year, we’ve seen strong policy momentum, VGF, storage obligations, and a big push for domestic value addition. The 50% localization target is bold, but real self-reliance requires securing critical minerals and achieving technological leadership, not just assembly. Localisation only matters if we meet global standards for performance, reliability, and cost. 

 

"Policy must also address raw material pricing, especially lithium carbonate indexing; relying on China’s SMM index leaves us vulnerable. The policy foundation is strong, but now we need a unified national framework, one that enables seamless, large-scale BESS industrialisation, avoids fragmented state policies, and brings together minerals, testing, skills, and offtake under a single, sustained strategy.”

 

Behind the policy push lies a deeper structural issue: India’s dependence on foreign technology and materials. More than 80% of cell components are still imported, leaving manufacturers exposed to global supply shocks and pricing volatility.

 

Himanshu Jadhav, CEO of Jendamark, highlighted how companies are attempting to bridge the gap on their own. 

 

“India’s energy sector is booming, but we still depend heavily on neighbouring countries for machinery and equipment, and face a shortage of skilled manpower. At Jendamark, we’ve tackled these challenges by manufacturing our own machines in our Pune facility and developing software that enables even low- or semi-skilled operators to run complex assembly lines, reducing reliance on foreign technology and addressing workforce gaps in the sector."

 

Startups, meanwhile, are calling for protection and practical support as they scale.

 

Satish Reddy, Founder of X-Battery, shared, “As the founder of X-Battery, I believe that startups like ours need key government support in several areas. In particular, we need assistance with the smooth import of essential components required for BMS, such as PCBs and other printed circuit board parts. 

 

"Additionally, we would like to see safeguards put in place to protect against the influx of cheap Chinese BMS imports. These measures would strengthen local companies, enabling them to create long-term value and develop export capabilities."

 

As SESI 2026 wrapped up, one message cut through the noise: India’s clean energy future hinges on decisive action now. Without faster approvals, stronger supply chains, and a unified national strategy, the country risks remaining dependent on imports—even as demand soars.