Are lithium batteries a viable energy storage solution for renewables in India?

Many renewable industry experts believe that the growth of renewables in India is incomplete without energy storage systems, and lithium batteries offer the most cost-effective integration. Lithium solar batteries are a rechargeable energy storage solution that can be paired with a solar power system to store excess solar power.

How big is the lithium-ion battery industry in India?

The lithium-ion battery industry in India is predicted to grow from 2.9 gigawatt hour (GWh) in 2018 to about 132 GWh by 2030 (at a CAGR of 35.5%). Advanced chemistry cell (ACC) batteries are the foundation of future low-carbon transportation and energy systems.

How will India's lithium-ion battery market grow in 2022?

The lithium-ion battery market in India is expected to grow at a CAGR of 50% from 20 GWh in 2022 to 220 GWh by 2030. The current focus of Indian enterprises is on battery cell manufacture. However, as more cell manufacturing units are commissioned in India, the upstream process will most likely be the next priority area.

Which companies manufacture lithium ion batteries in India?

Indian companies such as Neogen Chemicals and Gujarat Fluorochemicals have recently invested & started manufacturing electrolytes for lithium-ion batteries in India. Daramic (an Asahi Kasei Group company) currently manufactures PE separators in India for Lead Acid Batteries.

Why is India launching a large-scale battery manufacturing facility?

The company also has an exclusive collaboration with Ambri, an American energy storage company, to set up a large-scale battery manufacturing facility in India. There is a critical need to localise the cell supply chain. The cell materials constitute around 40% of its cost, and India has minimal availability of cell raw materials.

Is Li-ion battery manufacturing a viable option in India?

As per Niti Aayog’s estimates, the battery demand in India is expected to rise to about 230 GWh by 2030. Despite such large demand, cell manufacturing is still at a nascent stage in India. Given the vast business opportunity, numerous players are now looking to venture into Li-ion battery manufacturing in India.