India Competitive On Battery Costs, But Must Scale Up Manufacturing: Report
New Delhi: India’s battery manufacturing is competitively positioned globally but remains structurally dependent on imports and must rapidly scale cell manufacturing to meet demand, a report said on Thursday. The report from Wood Mackenzie said India offers a 154 per cent cost advantage over Japan and a 9 per cent advantage over South Korea, placing it second only to China among major…
India's battery manufacturing sector holds a competitive edge globally, according to a recent report by Wood Mackenzie. The cost of manufacturing locally is 154% lower than in Japan and 9% lower than in South Korea, making India the second-best destination for cell manufacturing after China. However, there are significant challenges to meet the growing demand.
Currently, India's cell manufacturing accounts for less than 1% of its projected 260 GWh demand by 2026. Despite the announcement of over 226 GWh of cell manufacturing capacity for construction by 2035, execution delays, financial viability issues, and deep reliance on Chinese and Korean technology make India 10 to 15 years away from a fully self-sufficient industry.
As of 2026, India only has 2 GWh of operational cell manufacturing capacity, compared to China's 2,695 GWh. The report suggests that the near-term focus should be on downstream components, such as containers, electronics, and battery packs, where localization is both feasible and profitable. Ankita Chauhan, director at Wood Mackenzie, emphasized that while India's battery storage ambitions are ambitious, the gap between policy and operational capacity remains substantial.
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