Regional spotlight: Battery chemistry & next-gen storage materials in India — what's different and why it matters

India's battery storage market grew 154% year-over-year in 2025, reaching 12.8 GWh of annual deployed capacity, yet over 87% of the lithium-ion cells installed were imported from China, according to the India Energy Storage Alliance (IESA, 2025). This tension between surging demand and near-total import dependence defines the country's approach to battery chemistry and next-generation storage materials. Unlike China's dominance in lithium iron phosphate (LFP) manufacturing or the US focus on high-nickel chemistries for electric vehicles, India is charting a path shaped by mineral constraints, tropical operating conditions, and an explicit policy goal of building a vertically integrated domestic supply chain from raw materials to recycling.

Why India Is Different

India's battery chemistry priorities diverge from global norms for structural reasons that product and design teams must understand before entering the market.

Mineral Endowment Shapes Chemistry Preferences

India holds less than 1% of global lithium reserves but possesses significant deposits of other critical minerals. The Geological Survey of India confirmed 5.9 million tonnes of lithium ore in Jammu and Kashmir's Reasi district in 2023, but extraction timelines remain uncertain, with commercial production unlikely before 2030. By contrast, India holds the world's fifth-largest reserves of titanium (a key input for lithium titanate batteries), substantial deposits of iron and phosphate (relevant to LFP cathodes), and approximately 15% of global thorium reserves, which are being explored for potential solid-state electrolyte applications.

This mineral profile has pushed Indian researchers and manufacturers toward sodium-ion batteries, which use abundant sodium from India's vast salt flats and soda ash production, and toward iron-air and zinc-air chemistries that rely on domestically available metals. The Indian Institute of Science (IISc) Bangalore and IIT Madras are running advanced programs in sodium-ion cathode materials, with IISc reporting a Prussian blue analogue cathode achieving 130 mAh/g specific capacity and 85% capacity retention over 2,000 cycles (IISc, 2025).

Tropical Climate and Grid Conditions

India's ambient temperatures routinely exceed 45 degrees Celsius in large parts of the country during summer months. This thermal environment accelerates calendar aging in conventional NMC (nickel manganese cobalt) chemistries by 30 to 50% compared to temperate climates, according to testing by the Centre for Electrochemical and Energy Research at IISc (CEER, 2025). LFP chemistries show greater thermal stability but still require active cooling systems that add 8 to 12% to system costs and consume 3 to 5% of stored energy in parasitic loads.

Grid-scale applications in India face additional stresses. The Indian grid operates at frequency deviations of plus or minus 0.5 Hz compared to plus or minus 0.2 Hz in European grids, resulting in more frequent and deeper charge-discharge cycles for frequency regulation batteries. Battery systems deployed for frequency regulation in India experience 1.5 to 2 times the cycle count of equivalent deployments in Germany or the UK, accelerating degradation and shortening economic life from 15 years to 10 to 12 years in NMC systems and from 20 years to 14 to 16 years in LFP systems.

Policy Architecture

India's battery policy framework is more interventionist than those of most Western markets. The Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery manufacturing, launched in 2021 and expanded in 2024, allocates INR 18,100 crore (approximately $2.2 billion) in incentives for domestic cell manufacturing. The scheme requires beneficiaries to achieve minimum 60% domestic value addition within five years and mandates that at least 25% of production capacity be allocated to chemistries other than conventional lithium-ion (NITI Aayog, 2025).

The Bureau of Indian Standards (BIS) has established mandatory performance and safety standards (IS 16893 for stationary storage, IS 17855 for EV batteries) that include India-specific thermal abuse testing at 60 degrees Celsius ambient, exceeding the 45 degrees Celsius maximum in IEC 62619. Products that pass European or US certification but fail BIS thermal testing cannot be sold in India, creating a regulatory filter that favors thermally robust chemistries.

What's Working

Sodium-Ion Commercialization

India is emerging as a global leader in sodium-ion battery commercialization, with several companies moving from laboratory to production scale. Sodion Energy, backed by Amara Raja Group (India's second-largest lead-acid battery manufacturer), announced a 1 GWh sodium-ion cell manufacturing facility in Telangana in 2025, with production expected by Q3 2026. The company's hard carbon anode and layered oxide cathode cells deliver 140 Wh/kg at the cell level, sufficient for stationary storage and two- and three-wheeler EVs that dominate India's electric vehicle mix.

Faradion, acquired by Reliance Industries in 2022 for $135 million, is scaling its sodium-ion technology through Reliance's planned 50 GWh gigafactory in Jamnagar, Gujarat. Faradion's cells achieve 160 Wh/kg and operate across a minus 20 to 60 degrees Celsius temperature range without active thermal management, a critical advantage in Indian conditions (Reliance Industries, 2025).

The cost advantage is significant: sodium-ion cells are projected to reach $40 to $50 per kWh at scale in India, compared to $70 to $80 per kWh for LFP cells, primarily because sodium carbonate costs roughly one-tenth the price of lithium carbonate and is available domestically.

Domestic LFP Manufacturing

The PLI scheme has catalyzed substantial LFP manufacturing commitments. Ola Electric's gigafactory in Tamil Nadu achieved 5 GWh of annual LFP cell production in late 2025, using cathode material sourced partly from Tata Chemicals' LFP cathode plant in Gujarat. Exide Energy Solutions (a subsidiary of Exide Industries, in partnership with SVOLT Energy of China) is ramping a 12 GWh facility in Bengaluru with plans to reach full production by 2027.

These facilities are adapting LFP cell designs for Indian conditions. Ola Electric's 4680-format cylindrical cells incorporate wider electrode spacing and modified electrolyte formulations with fluoroethylene carbonate additives that improve high-temperature cycling stability. Internal testing shows less than 15% capacity fade after 4,000 full cycles at 45 degrees Celsius, compared to 20 to 25% fade in standard commercial LFP cells under the same conditions (Ola Electric, 2025).

Grid-Scale Storage Deployment

India's grid storage buildout is accelerating rapidly, driven by the Solar Energy Corporation of India's (SECI) aggressive procurement program. SECI awarded 15 GWh of battery storage contracts in fiscal year 2025 to 2026, with tariffs ranging from INR 3.2 to 4.1 per kWh for 4-hour duration systems. JSW Energy, Greenko, and ReNew Power are the leading developers, deploying primarily CATL and BYD LFP cells in containerized systems.

The Rajasthan Renewable Energy Corporation's 1.5 GW / 6 GWh pumped hydro and battery hybrid project in Jaisalmer, combining 1 GW of pumped storage with 500 MW / 2 GWh of LFP batteries, represents a model for integrating multiple storage technologies. The battery component handles fast-response frequency regulation while pumped hydro manages energy shifting across 8 to 12 hour durations, optimizing the economic profile of both assets (RREC, 2025).

What's Not Working

Supply Chain Localization Gaps

Despite PLI incentives, India's battery supply chain remains critically dependent on imports for key materials. Virtually all separator film, electrolyte solvents, and high-purity graphite for anodes are imported from China, Japan, and South Korea. Indian separator manufacturers such as Uflex and SWM International's Indian operations produce polypropylene separators for lead-acid batteries but have not yet commercialized the ceramic-coated polyethylene separators required for lithium-ion cells. This single component represents 10 to 15% of cell cost and 100% import dependence.

Cathode active material production is nascent. Tata Chemicals and Epsilon Advanced Materials are producing LFP cathode powders, but output quality has struggled to match the consistency of Chinese and Korean suppliers. Batch-to-batch variation in particle size distribution exceeds plus or minus 8%, compared to the plus or minus 3% specification required by cell manufacturers, leading to yield losses of 5 to 10% during cell production (IESA, 2025).

Recycling Infrastructure

India's battery recycling infrastructure is severely underdeveloped relative to the coming wave of end-of-life batteries. The Central Pollution Control Board's Extended Producer Responsibility framework for batteries, effective from April 2025, requires 70% collection and recycling rates by 2030. However, current formal recycling capacity covers less than 5% of projected end-of-life volumes. Attero Recycling, India's largest e-waste recycler, processes approximately 3,000 tonnes of lithium-ion batteries annually, recovering cobalt, nickel, and copper but not lithium or graphite (Attero, 2025).

The informal recycling sector, which handles an estimated 60 to 70% of India's current battery waste, uses rudimentary methods that recover metals at low efficiency while generating hazardous emissions. Without rapid formalization and scale-up, India risks creating a significant environmental liability as the first generation of EV and grid storage batteries reaches end of life starting in 2028 to 2030.

Testing and Certification Bottlenecks

BIS certification for battery products requires testing at accredited laboratories, but India has only four labs with full IS 16893 and IS 17855 testing capabilities. Wait times for certification testing averaged 14 to 18 weeks in 2025, delaying product launches and creating a backlog that affects both domestic manufacturers and importers. The delay is particularly acute for novel chemistries (sodium-ion, zinc-air) where testing protocols are less established and require additional validation cycles.

Key Players

Established Companies

• Reliance Industries: Developing 50 GWh gigafactory integrating Faradion's sodium-ion technology with LFP and solid-state cell production lines
• Ola Electric: Operating 5 GWh LFP cell plant with India-specific high-temperature cell designs for two-wheelers and grid storage
• Exide Energy Solutions: Scaling 12 GWh facility in partnership with SVOLT, targeting automotive and industrial applications
• Amara Raja Energy and Mobility: Investing in sodium-ion through Sodion Energy and expanding lithium-ion pack assembly capacity
• Tata Chemicals: Producing LFP cathode active materials at commercial scale, with plans to add NMC cathode production

Startups

• Sodion Energy: Commercializing sodium-ion cells with 140 Wh/kg density for stationary and light EV applications
• Log9 Materials: Developing aluminum-air and lithium-titanate batteries for commercial EVs operating in high-temperature environments
• Gegadyne Energy: Building non-lithium battery technology using titanium dioxide-based anodes for ultra-fast charging applications
• Epsilon Advanced Materials: Producing synthetic graphite anode materials to reduce import dependence

Investors

• Peak XV Partners (formerly Sequoia India): Active in battery technology and EV supply chain investments
• Kalaari Capital: Backing early-stage battery materials and recycling startups
• Temasek Holdings: Invested in Ola Electric and evaluating grid storage infrastructure plays

Action Checklist

• Evaluate sodium-ion cells for stationary storage and light-EV applications where India's cost and temperature advantages are strongest
• Specify BIS IS 16893 or IS 17855 certification requirements early in product design to avoid 14 to 18 week testing delays
• Design thermal management systems for 50 degrees Celsius sustained ambient temperatures, not the 35 degrees Celsius typical of European or North American specifications
• Build supplier qualification programs that account for plus or minus 8% batch variation in Indian-sourced cathode materials
• Engage with PLI scheme requirements to qualify for manufacturing incentives, targeting 60% domestic value addition
• Develop recycling partnerships or in-house capabilities ahead of EPR enforcement timelines starting in 2025
• Factor 1.5 to 2 times standard cycle degradation into warranty and performance guarantee models for Indian grid-connected systems

FAQ

Q: Should product teams prioritize sodium-ion or LFP chemistry for the Indian market? A: The answer depends on application segment. For grid-scale stationary storage and electric two- and three-wheelers (which represent over 80% of India's EV sales volume), sodium-ion offers compelling advantages: lower cost ($40 to $50/kWh at scale versus $70 to $80/kWh for LFP), superior high-temperature performance without active cooling, and full domestic supply chain potential. For electric four-wheelers and applications requiring energy density above 150 Wh/kg, LFP remains the practical choice through 2028. Product teams should evaluate dual-chemistry strategies that deploy sodium-ion where energy density is less critical and LFP where range and weight matter.

Q: How does India's PLI scheme actually work for battery manufacturers? A: The PLI scheme provides incentives of INR 2,000 to INR 4,500 per kWh of cell manufacturing capacity (approximately $24 to $54/kWh) over five years, disbursed based on verified incremental production and domestic value addition. Beneficiaries must invest a minimum of INR 225 crore per GWh, achieve 60% domestic value addition by year five, and allocate at least 25% of capacity to non-conventional chemistries. The scheme uses a committee structure under the Ministry of Heavy Industries for compliance verification, with quarterly production audits. As of early 2026, 10 companies have received allocations totaling 50 GWh, but only Ola Electric and Exide have begun commercial production.

Q: What are the biggest risks for foreign companies entering India's battery market? A: Three risks dominate. First, BIS certification requirements create a 4 to 6 month market entry barrier with India-specific thermal testing that may require product redesign. Second, the PLI scheme's domestic value addition requirements effectively mandate local sourcing that may not be quality-competitive for 2 to 3 years, creating a tension between compliance and product performance. Third, India's intellectual property enforcement environment, while improving, remains weaker than in the US, EU, or Japan, creating technology leakage risks for companies sharing proprietary chemistry formulations with local partners. Successful entrants have mitigated these risks by establishing Indian R&D centers (as Samsung SDI and LG Energy Solution have done), pursuing joint ventures rather than licensing arrangements, and engaging with BIS standards committees to ensure testing protocols align with international norms.

Q: How reliable is India's battery testing and certification infrastructure? A: India currently has four accredited laboratories capable of full battery testing to IS 16893 and IS 17855: the Automotive Research Association of India (ARAI) in Pune, the International Centre for Automotive Technology (ICAT) in Manesar, the Central Power Research Institute (CPRI) in Bengaluru, and the Indian Institute of Technology Delhi testing center. Capacity is being expanded with three additional labs expected to be operational by mid-2027. In the interim, product teams should submit testing applications 5 to 6 months before planned launch dates and consider pre-testing at internationally accredited labs to identify potential failure modes before formal BIS submission.

Sources

• India Energy Storage Alliance. (2025). India Energy Storage Market Report 2025: Deployment, Manufacturing, and Policy Assessment. Mumbai: IESA.
• NITI Aayog. (2025). Advanced Chemistry Cell Production Linked Incentive Scheme: Progress Review and Updated Guidelines. New Delhi: Government of India.
• Indian Institute of Science. (2025). Sodium-Ion Battery Research: Cathode Materials Development and Performance Benchmarking. Bangalore: IISc Centre for Electrochemical and Energy Research.
• Reliance Industries. (2025). Annual Report 2024-2025: New Energy Business Update. Mumbai: Reliance Industries Ltd.
• Ola Electric. (2025). Gigafactory Progress Report: Cell Manufacturing Performance and Quality Metrics. Bengaluru: Ola Electric Technologies Pvt Ltd.
• Rajasthan Renewable Energy Corporation. (2025). Jaisalmer Hybrid Storage Project: Technical Design and Commissioning Plan. Jaipur: RREC.
• Attero Recycling. (2025). Lithium-Ion Battery Recycling Operations: Annual Throughput and Recovery Rates. Noida: Attero Recycling Pvt Ltd.
• Central Pollution Control Board. (2025). Battery Waste Management Rules: Extended Producer Responsibility Framework Implementation Status. New Delhi: CPCB.