India Aims to Invest $38 Billion in Battery Sector, Establishes List of Approved Suppliers

India to Create Approved List of Battery Manufacturers to Boost Domestic Production

The Indian government is working on a plan to designate exclusive vendors for government-backed energy storage projects through an Approved List of Battery Manufacturers (ALBM). This move is aimed at reducing dependence on imports and boosting domestic manufacturing, mirroring a similar framework in the solar sector.

According to a Mint report, the Centre is likely to outline the ALBM framework and release draft localisation norms within the current fiscal year. A phased timeline may also be provided to manufacturers and users to align with local sourcing requirements. The localisation norm, ALBM, is part of the India Battery Vision 2047, a long-term roadmap designed to strengthen domestic battery manufacturing and support India's ambition of becoming a developed economy by 2047.

The proposed ALBM is expected to function as a non-tariff barrier, determining which companies can participate in government tenders for battery storage projects. The measure is also aimed at addressing security concerns, given the heavy reliance on imports—particularly from China—for battery components. India is planning to roll out 47 gigawatts (GW) of battery storage capacity, requiring investments of around $38 billion.

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The solar segment has a similar approved list, ensuring only domestically manufactured modules are used in government-supported projects. The mandate is set to include solar PV cells from June 1 this year, with plans to extend it to ingots and wafers by 2028.

Under the India Battery Vision 2047, the priority is to build a strong domestic manufacturing core focused on advanced chemistry cell (ACC) cell manufacturing and key ACC component manufacturing. End-use interventions will be implemented to provide demand visibility and confidence for investors. Further, infrastructure and talent development will be supported in the phase-wise development of the sector to make the Indian manufacturing space globally competitive.

The roadmap focuses on building capacity across the entire battery value chain—from mining critical minerals to processing components and expanding adoption in electric vehicles and grid storage. Batteries play a key role in stabilising power supply by storing electricity and releasing it during peak demand, especially as renewable sources like wind and solar remain intermittent.

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India is targeting a cumulative battery storage capacity of nearly 3 terawatt-hours (TWh) by 2047 across sectors such as mobility, power, and electronics. The rollout of 5GWh capacity under the advanced chemistry cell (ACC) production-linked incentive (PLI) scheme, aimed at supporting new battery technologies, is also being evaluated under this roadmap, though implementation has faced delays so far.

Experts have highlighted the need to secure supply chains for critical minerals. "The focus needs to shift from resource discovery to assured supply and processing. The National Critical Mineral Mission architecture is framed around scaling R&D and commercialization across the value chain," said Alekhya Datta of The Energy and Resources Institute.

Debmalya Sen of the India Energy Storage Alliance said the long-term objective is full domestic production of battery cells. "In the near term, there may be a focus on developing all components other than cells in India. But going ahead, as the domestic supply chain grows, backed by government support and industry innovation, it may be mandated that some of the cells used are also local, which can then be extended to 100% localization," he said.