IESA and Industry Leaders Call on Government to Bridge 60 GWh Domestic Cell Manufacturing Gap

India’s advanced chemistry cell (ACC) ecosystem is at a pivotal stage, with projected demand expected to reach 220–260 GWh by 2030 and 800–900 GWh by 2035, primarily driven by electric mobility (60–70%) and stationary storage (30–40%). However, domestic manufacturing capacity currently stands at 150–180 GWh, with only 40–50 GWh expected to become operational soon, leaving a supply gap of 60–80 GWh and continued reliance on imports for cells and critical materials such as cathodes, anodes, and electrolytes. Over 80% of cell components are still imported.

Speaking at the Stationary Energy Storage India (SESI) 2026 summit, Debmalya Sen, President of India Energy Storage Alliance (IESA), highlighted the urgent need for targeted support in component manufacturing, faster approvals, robust recycling, and stronger local supply chains, noting that over 30% of battery costs come from materials like graphite and lithium. “Timely execution and improved circularity are essential for long-term competitiveness,” he said.

The summit, organized by IESA and Customized Energy Solutions (CES), saw participation from over 450 industry leaders across more than 10 countries. Discussions focused on the sector’s challenges and opportunities, with repeated calls for coordinated government action to drive growth and position India at the forefront of the global clean energy transition.

Kumar M, Founder of Smart Grid Analytics, emphasized India’s potential to shape the future of global energy storage. “With our technical talent and ambitious goals, we can lead in smart, resilient power systems. Realizing this potential requires investments not only in cutting-edge hardware but also in intelligence, software, analytics, and digital infrastructure,” he said, stressing the importance of developing a skilled workforce in data, automation, and cloud-based operations.

Industry leaders underscored that India’s energy storage ambitions hinge on a skilled workforce capable of leveraging new technologies across the value chain. Samir Patel, Chief of Technology and Operations, BESS Energy Division, SPML, highlighted policy momentum in the past year, including viability gap funding (VGF), storage obligations, and domestic value addition. “The 50% localization target is ambitious, but true self-reliance requires securing critical minerals and achieving technological leadership, not just assembly. Policy must also address raw material pricing, especially lithium carbonate indexing, as reliance on China’s SMM index leaves us vulnerable,” he said. Patel called for a unified national framework to enable large-scale BESS industrialization and align minerals, testing, skills, and offtake under a sustained strategy.

Himanshu Jadhav, CEO of Jendamark, pointed to ongoing challenges in machinery imports and workforce shortages. “At Jendamark, we are addressing these by manufacturing our own machines in Pune and developing software that enables low- or semi-skilled operators to manage complex assembly lines, reducing reliance on foreign technology,” he said.

Startups also highlighted the need for government support. Satish Reddy, Founder of X-Battery, called for smoother import processes for essential components like PCBs and safeguards against cheap Chinese BMS imports to strengthen local companies and promote long-term value creation and export capabilities.

As SESI 2026 concluded, industry leaders collectively urged swift government action to close India’s energy storage supply gap. The sector’s growth now depends on bold policy interventions to boost domestic manufacturing, secure critical materials, and position India as a global leader in clean energy.