Beyond Electric Vehicles: India's Battery Manufacturing Opportunity Is Expanding to the Power Grid
From electric mobility to renewable energy storage, India's battery manufacturing ecosystem is opening new avenues for component suppliers, technology companies and industrial investors.
India's battery manufacturing industry is entering a new phase. While electric vehicles have been an important driver of battery demand, the need to store renewable energy and strengthen electricity-grid reliability is creating an additional market for battery energy storage systems.
This shift is broadening the opportunity for manufacturers beyond battery cells to include battery packs, battery management systems, thermal management solutions, power electronics, testing equipment and specialised materials.
For businesses considering entry into India's battery manufacturing ecosystem, the emerging opportunity lies in understanding how different applications influence product requirements, investment decisions and competitive positioning.
India's Battery Industry Is Developing Across Multiple Applications
Batteries are becoming increasingly important across two distinct markets: mobility and stationary energy storage.
In electric mobility, batteries power electric two-wheelers, passenger vehicles, commercial vehicles and other transport applications. Manufacturers require suitable combinations of energy density, charging performance, safety, durability and cost.
Stationary battery energy storage systems serve a different purpose. They store electricity for later use, support renewable energy integration and can help manage fluctuations in power supply and demand. These systems may be deployed at utility-scale renewable energy projects, commercial facilities, industrial sites and other locations.
Although both markets rely on battery technology, their operating requirements, system configurations and customer purchasing decisions differ. Businesses should therefore evaluate EV batteries and stationary storage as related but distinct manufacturing opportunities.
Recent Developments Reshaping India's Battery Manufacturing Landscape
Recent government and company announcements indicate growing attention to domestic battery manufacturing and grid-scale storage.
- Government Extends Bidding for a 10 GWh Grid-Scale Battery Manufacturing Programme
On 15 October 2026, The Economic Times reported that the Ministry of Heavy Industries had extended the bid submission deadline for the Advanced Chemistry Cell (ACC) battery Production Linked Incentive programme covering grid-scale stationary storage applications.
The deadline was extended to 10 November 2026, giving prospective bidders additional time to prepare proposals for the 10 GWh programme.
The initiative is intended to support domestic manufacturing capacity for stationary energy storage. It is relevant to battery manufacturers and companies evaluating the production of cells and associated products for grid-scale applications.
For prospective entrants, the development makes it important to monitor the programme's tender documents, eligibility conditions and domestic value-addition requirements. An extended deadline does not itself indicate that new manufacturing capacity has been awarded or commissioned.
Source: The Economic Times, 15 October 2026.
- Trontek Targets 12 GWh of Annual BESS Manufacturing Capacity by 2028
In October 2026, Express Computer reported that Trontek Electronics planned to expand into the battery energy storage systems market, targeting annual manufacturing capacity of 12 GWh by 2028.
The company's announced plans cover residential, commercial, industrial and utility-scale applications, with systems ranging from 215 kWh to 5 MWh.
The development illustrates how companies with experience in batteries and electric mobility are exploring opportunities in stationary storage. It also highlights the potential role of system integration, domestic engineering, testing and battery management capabilities alongside cell manufacturing.
The 12 GWh figure is a company target for future capacity, not evidence of current installed or operational production capacity.
Source: Express Computer, October 2026.
- India's ACC Battery PLI Programme Continues to Shape Investment Decisions
The Ministry of Heavy Industries administers the National Programme on Advanced Chemistry Cell Battery Storage, approved in 2021 with an outlay of ?18,100 crore to support 50 GWh of domestic ACC manufacturing capacity.
In a government update published in February 2026, the ministry reported that 40 GWh of capacity had been awarded to four beneficiary firms. Reported cumulative investment under the programme stood at ?3,237 crore as of 31 December 2025.
The same update reported that only 1 GWh of capacity had been installed across the four beneficiaries at that point. This distinction is important: awarded capacity, announced capacity and installed manufacturing capacity represent different stages of project development.
The programme also supports demand for battery-related materials and components, including cathode and anode active materials and foils. This creates areas for businesses to investigate across the wider battery supply chain.
Source: Press Information Bureau, Government of India, 6 February 2026.
Where Are the Business Opportunities in Battery Manufacturing?
India's battery ecosystem extends beyond cell production. Several manufacturing segments merit evaluation, depending on a company's technical capabilities and investment capacity.
Battery Cells and Advanced Chemistry Cells
Cell manufacturing is a technically demanding activity involving specialised production processes, quality controls and significant capital investment.
Businesses evaluating this segment must examine the chemistry best suited to the target application, production economics, raw-material availability, technology requirements and customer demand.
Competition from established international manufacturers and dependence on imported inputs may also influence the commercial viability of a proposed facility.
Battery Packs and Battery Management Systems
Battery packs integrate cells and supporting components into systems designed for specific applications. Battery management systems monitor parameters such as voltage, temperature and charging conditions.
These segments can offer different entry requirements from cell manufacturing, although they still demand reliable engineering, safety testing and product validation.
Manufacturers should assess the needs of vehicle OEMs, battery integrators and energy storage system providers before selecting a product focus.
Grid-Scale Battery Energy Storage Systems
Stationary storage systems combine batteries with power conversion, control systems, thermal management, protection equipment and other supporting components.
As grid-scale storage projects develop, businesses can evaluate opportunities in system integration, battery enclosures, monitoring electronics, power electronics, testing and maintenance.
The opportunity depends on project pipelines, procurement arrangements, system performance requirements and the economics of the intended application.
Battery Materials and Manufacturing Equipment
Battery production relies on specialised materials, precision equipment and process-control systems.
Potential areas to investigate include active materials, current collectors, battery foils, manufacturing machinery, inspection systems and recycling-related technologies.
These segments require product-specific assessments of technical specifications, supply-chain dependencies, customer qualification and competition.
Challenges Businesses Must Evaluate Before Entering the Market
Despite growing interest, battery manufacturing presents several important investment considerations.
Capital requirements: Cell production and integrated storage-system manufacturing can require substantial investment in equipment, facilities, testing and working capital.
Technology and product selection: Battery chemistries and system configurations differ by application. Businesses must identify the requirements of their intended customers before selecting a technology.
Raw-material dependencies: Access to lithium, nickel, graphite, copper and other materials can affect cost and supply reliability. The relevance of individual materials depends on the chemistry and product being manufactured.
Safety and quality: Battery systems require appropriate testing, quality controls and compliance with applicable safety and transportation standards.
Customer qualification: Manufacturers may need to demonstrate performance, durability, reliability and service capabilities before securing commercial contracts.
Project economics: Storage-system demand does not automatically translate into profitable manufacturing. Businesses must evaluate costs, pricing, utilisation, customer procurement and the competitive environment.
These considerations reinforce the importance of assessing individual market segments rather than relying solely on broad battery-demand projections.
How Market Research Can Support Battery Manufacturing Investments
A structured market assessment can help businesses identify viable opportunities across EV batteries, stationary storage and related manufacturing segments.
The process begins by defining the intended product, application and customer base. Market sizing can then estimate the relevant demand, while competitive analysis identifies existing manufacturers, product offerings and possible areas of differentiation.
Location assessment can compare access to industrial infrastructure, suppliers, customers, logistics and skilled personnel. Financial analysis can examine capital expenditure, operating costs, working capital, production capacity and potential revenue scenarios.
Businesses should also investigate relevant government programmes, tender conditions, regulatory obligations and product-specific compliance requirements.
This approach helps turn broad industry developments into a more specific assessment of commercial opportunity, investment requirements and market-entry risks.
Turning India's Battery Manufacturing Trends into Business Decisions
India's battery manufacturing ecosystem is developing across electric mobility, renewable energy storage and the supporting component supply chain. Recent government initiatives and company announcements highlight the range of opportunities being explored.
However, the suitability of a manufacturing investment depends on the product, target customer, technology, location and competitive environment. A company evaluating battery packs, for example, will face different requirements from a business considering cell manufacturing or grid-scale storage integration.
OMR Global's Market Entry Blueprint provides a structured approach to evaluating these decisions through market sizing, competitive analysis, location assessment, regulatory and licensing research, and government scheme guidance. Depending on the selected plan, the assessment may also include revenue projections, scenario analysis and risk considerations.
Explore OMR Global's Market Entry Blueprint to assess your target market, understand the competitive landscape and develop a more informed market entry strategy.