How we can use global learnings to build a battery manufacturing supply chain in India

India has a pivotal opportunity to reduce risk in battery materials manufacturing by drawing on early lessons from global pioneers.

India’s GDP grew at 6.5% in 2024, with some projections pointing to it surpassing Germany as the world’s third-largest economy by 2028.

That growing economic power is increasingly being directed towards the clean energy transition, through investment in renewable energy sources such as solar and wind power.  

To provide grid stability alongside increasing renewable integration, India’s battery energy storage system (BESS) market is forecast to grow its demand from 1.5GWh in 2024 to over 28GWh in 2030 – according to Bloomberg NEF’s battery outlook. 

To meet that demand for BESS, India must build a strong battery manufacturing ecosystem by leveraging global partnerships and learning from countries with more advanced capabilities. However, this must be balanced carefully to ensure strategic autonomy.

How can India seize this pivotal opportunity to establish a world-class battery manufacturing industry?

Building on the policy foundations
Targeted government policies and incentives play a significant role in accelerating the growth of emerging industries. In China, for example, battery manufacturing policies, subsidies, and other tax breaks have been deployed since 2009 to give the country a leading edge.

India has already begun to lay the foundations – notably through the Advanced Chemistry Cell (ACC) Battery Storage scheme. In addition to highly targeted government support, policymakers play a critical role in setting a broader industrial strategy that vertically aligns each stage of the battery value chain, from mining and refining to recycling. 

This will not only drive a level of strategic autonomy, but will also help ensure Indian market entrants of all sizes and at all stages of the supply chain have the support to scale-up, reduce investment risk, and are incentivised to recycle valuable materials that can be redeployed.

Vertically integrating the battery value chain
China’s success in battery manufacturing begins with its capabilities in strategically sourcing and processing its raw materials including copper, iron, phosphate, and carbon. 

That vertical integration has been replicated across the manufacturing value chain all the way through to cell, pack and even end-products like cars and BESS, which is evidenced by the dominance of Chinese market players such as CALB, CATL, Sungrow and BYD.

India’s policymakers can learn from China’s experience that the integration of the whole chain brings about production cost reductions, thereby lowering the financial barrier to businesses in India seeking market entry.

Collaboration and knowledge transfer
Many Indian manufacturers currently look to Chinese technology and imports as a starting point to scale their operations. 
There are risks to simply replicating China's model because technology transferred without localisation presents complications. However, this does not mean India should attempt the development of a battery manufacturing value chain locally in isolation.

Instead, there is a strategic approach that can be taken with established battery technology leaders, such as those in China, South Korea, and Japan. Interactions should move beyond relying solely on licensing agreements and instead prioritise collaboration and an expansion of knowledge-sharing to enable localisation.

That means building a practical understanding of how global battery technologies can be adapted for local conditions, whilst delivering learnings from adjacent sectors such as chemicals, pharmaceuticals, mining, and heavy industry.

Global lessons for battery materials plants
India has a pivotal opportunity to reduce risk in battery materials manufacturing by drawing on early lessons from global pioneers, especially around knowledge transfer, technology diversification, and supply chain resilience.

The challenge isn’t just technological change; it's securing the right technology to begin with. With leading nations like China increasingly restricting exports of high-end LFP technologies, India must accelerate efforts to localise battery innovation whilst maintaining optionality. 

This makes early knowledge transfer critical, not just to replicate what exists today, but to enable the development of homegrown solutions tailored to local needs.

First-of-a-kind battery projects offer numerous practical insights to support this transition. These include how to scale processes efficiently within evolving regulatory and geopolitical environments, and how to design plants with the flexibility to accommodate future technologies, both domestic and imported, as they emerge. 

By leveraging global learnings now, Indian manufacturers can build a strong foundation for future self-reliance, whilst reducing time, cost, and uncertainty as they scale.

Smarter project delivery
Experience from other regions also underscores the risks of underestimating capital costs or setting overly aggressive project timelines. In Europe, delays and overruns have reinforced the value of realistic planning. These lessons are now informing delivery strategies in newer markets that can help navigate early-stage complexities.

Setting a phased, achievable path to scale—along with maintaining consistency in areas such as technology supplier selection—can reduce risks like supply chain disruption and improve capital efficiency. Exposure across the full value chain, from mining through to recycling, also helps identify potential bottlenecks early and design around them.

India is at a crossroads in its battery manufacturing industry. Its nascency creates potential pitfalls, but it also means the industry is early enough to benefit from lessons learned from abroad. 

Those include a comprehensive industrial strategy and policy support, collaboration with industry leaders to benefit from expertise, and forward planning for projects to reduce the risk of technology obsolescence and cost overruns. 

Once those learnings have been applied, India will be in a stronger position to build a resilient, locally adapted battery manufacturing industry that supports its strategic autonomy and industrial competitiveness.

With the right lessons applied, the right partners in place, and a growing local talent pool already gaining experience on global energy projects, India is well positioned to establish a competitive, resilient battery manufacturing sector.