India is transitioning from a net importer of battery materials to developing a domestic battery chemicals ecosystem, with demand for advanced chemistry cells (ACC) expected to surge in the coming years, according to a research report by brokerage firm Nuvama. The report highlights that India's ACC demand is projected to grow at a compound annual growth rate (CAGR) of 39 percent between 2025 and 2030, reaching approximately 700 gigawatt-hours (GWh) by 2030, up from 40 GWh in 2025. Demand is expected to remain robust thereafter, growing at a CAGR of 27 percent between 2030 and 2035.
EV and BESS driving demand
Nuvama expects electric vehicle (EV) battery demand to grow at around 35 percent annually during 2025-2030. Battery energy storage systems (BESS) are projected to be the fastest-growing application, with demand rising at a CAGR of 78 percent over the same period. This surge is underpinned by India's accelerating energy transition and increasing adoption of electric mobility.
Global ACC demand and supply dynamics
Globally, advanced chemistry cell demand is expected to grow at around 20 percent CAGR during 2025-2030, before moderating to approximately 8 percent during 2030-2035. According to Nuvama, global demand growth is anticipated to eventually outpace supply growth, with utilisation rates rising as excess manufacturing capacity is absorbed. This trend could benefit Indian manufacturers as global markets tighten.
Government support and manufacturing expansion
India's battery manufacturing ecosystem is expanding rapidly. The government's Rs 18,100 crore Production Linked Incentive (PLI) scheme for ACC batteries aims to establish 50 GWh of domestic cell manufacturing capacity. In addition, more than 10 manufacturers have announced around 178 GWh of battery manufacturing capacity, creating significant downstream demand for battery chemicals and materials. The National Critical Mineral Mission is expected to support domestic exploration, processing and recycling of key minerals including lithium, nickel, cobalt and graphite, as per Nuvama.
Dominant battery chemistry and material implications
Nuvama expects lithium iron phosphate (LFP) to remain the dominant battery chemistry globally due to its lower cost, improved safety and longer cycle life. The shift towards LFP is expected to boost demand for iron phosphate, graphite, conductive carbon black, carbon nanotubes and electrolyte materials, while moderating long-term growth in cobalt demand. This chemistry shift will shape India's battery materials value chain.
Emerging technologies and long-term outlook
India's battery-materials value chain is at different stages of development. Critical minerals remain largely imported, while cathode and anode materials, electrolytes and conductive additives are seeing increasing domestic capacity. Battery cell manufacturing is also expanding rapidly, and emerging technologies such as silicon-carbon anodes, LMFP, sodium-ion and solid-state batteries are being explored as potential future growth areas. Nuvama said India's energy transition, rising EV adoption and the expansion of renewable energy and storage infrastructure could create a long-term opportunity for domestic battery chemicals and materials manufacturers.
