India ACC Battery Cell Manufacturing Market, 2032

Market Overview: India ACC Battery Cell Manufacturing Market

The India ACC battery cell manufacturing market size is expanding rapidly from a small base, driven by the PLI ACC scheme, rising EV sales, large storage procurement plans, duty relief on battery capital goods, and new gigafactories from domestic groups. Valued at USD 165 million in 2025 and projected to reach USD 6,240 million by 2032, growing at a CAGR of 68.0%, growth comes from cell output rising from 1.8 GWh in 2025 to 82 GWh in 2032. Electric vehicle cells lead demand with 81% of 2025 value, while LFP cells for battery energy storage systems form the fastest growing segment. Pack assemblers that relied on imports are shifting to domestic supply as plants qualify, and OEMs are adding local content rules to vendor contracts. As Ola Electric ramps its Krishnagiri gigafactory, Exide Energy runs its 6 GWh Bengaluru plant, Amara Raja moves toward its first 2 GWh commercial line in 2027, and Agratas, Reliance, JSW and Waaree build multi-gigawatt plants, domestic cell making is turning into a scaled, policy-backed industry with strong long-term potential.

Key Report Takeaways: India ACC Battery Cell Manufacturing Market

• The market size is projected to grow from USD 165 million in 2025 to USD 6,240 million by 2032, registering a CAGR of 68.0%, as domestic cell output rises from 1.8 GWh to 82 GWh on the back of PLI ACC awards, private gigafactories, and long-term OEM and storage offtake.
• Electric vehicle cells dominate demand, accounting for 81% of 2025 value, led by NMC cylindrical cells for electric two-wheelers from Ola Electric. NMC holds 54% of 2025 value, while LFP holds 38% and becomes the largest chemistry by 2027 as storage and three-wheeler demand rises.
• LFP cells for battery energy storage systems form the fastest growing segment, expanding at a CAGR of 94.8% to 2032, as the BESS share of cell value rises from 11% in 2025 to 31% in 2032, backed by viability gap funding for 43.8 GWh and the 236 GWh storage need set for 2031-32.
• Under the PLI ACC scheme, 40 GWh of the 50 GWh target has been awarded to Ola Electric (20 GWh), Reliance New Energy (15 GWh) and Rajesh Exports (5 GWh), with beneficiaries investing INR 3,237 crore and creating 1,118 jobs through December 2025, and a further 10 GWh offered through a 2026 re-bid.
• Private capacity outside the scheme is scaling fast, with Agratas building a 20 GWh first phase at Sanand, Exide Energy commissioning 6 GWh at Bengaluru, Amara Raja investing INR 9,500 crore in Telangana, JSW targeting a first 10 GWh phase in Odisha, and Waaree raising INR 1,003 crore for 20 GWh, all adding to the domestic cell supply base by 2032.

Key Market Drivers: India ACC Battery Cell Manufacturing Market

PLI ACC Scheme and Gigafactory Investments Building Domestic Cell Capacity Across India

Growth in Indian cell manufacturing is being driven first by policy. The PLI ACC scheme, approved in May 2021 with an outlay of INR 18,100 crore, targets 50 GWh of domestic cell capacity and links incentives to value addition and local sourcing. Of this target, 40 GWh has been awarded: Ola Electric holds 20 GWh, Reliance New Energy holds 15 GWh across two rounds, and Rajesh Exports holds 5 GWh, with land acquired for all awarded capacity. Ola Electric has commissioned the first 1 GWh at its Krishnagiri gigafactory in Tamil Nadu. Private investment outside the scheme is larger still. Agratas, the Tata Group battery company, received its first process equipment at Sanand on September 16, 2026, for a 20 GWh first phase. Exide Energy Solutions commissioned a 6 GWh Phase-I plant at Devanahalli, Bengaluru, as part of a 12 GWh program. Amara Raja commissioned an INR 500 crore customer qualification plant in Telangana in July 2026 and plans its first 2 GWh commercial line for 2027. The Union Budget for 2025-26 also exempted basic customs duty on capital goods for EV battery manufacturing, lowering plant costs across the sector.

Rising Electric Vehicle Adoption and Localization Targets Lifting Demand for Domestic Cells

The India ACC battery cell manufacturing market is benefiting from steady growth in electric vehicle sales. Vahan data show 2.3 million EVs registered in 2025, an 8% share of new vehicle sales, with electric two-wheelers and three-wheelers making up most of the volume. The PM E-DRIVE scheme, with an outlay of INR 10,900 crore, supports EV purchases and funds 72,300 public fast chargers, while the PLI scheme for automobiles and auto components rewards domestic value addition. These rules push OEMs to source cells locally rather than import complete packs. Battery cells make up the largest single cost item in an electric vehicle, so OEMs see domestic cells as a way to cut currency exposure and shorten lead times. Ola Electric is moving its scooters to its own 4680 cells, Exide is replacing imported cells in its three-wheeler packs with LFP cells from Bengaluru, and car makers are qualifying local cells for future models. India imported lithium-ion batteries worth over USD 3 billion in FY2025, which shows the size of the demand that domestic plants can capture as they scale.

Grid-Scale Energy Storage Build-Out Creating a Second Large Demand Pool for LFP Cells

Battery energy storage is becoming the second major demand pool for domestic cell makers. The National Electricity Plan projects storage needs of 34 GWh in 2026-27 and 236 GWh in 2031-32, requiring an estimated investment of INR 3.49 lakh crore. Viability gap funding now supports 43.8 GWh of storage capacity, and state utilities in Rajasthan, Gujarat, Maharashtra, Andhra Pradesh and Karnataka are tendering standalone and solar-plus-storage projects at record scale. These projects use large-format LFP prismatic cells, which suit Indian heat and offer long cycle life at low cost per kWh. Proposed domestic content norms for storage projects and the risk of higher duties on imported cells are steering developers toward local supply. Reliance is building an initial 30 GWh per year battery facility at its Jamnagar giga complex, Waaree is building a 20 GWh cell and pack plant aimed at utility storage, and Amara Raja has already deployed more than 1 GWh of storage across about 50,000 telecom sites. As a result, the BESS share of domestic cell value is projected to rise from 11% in 2025 to 31% in 2032.

Key Market Challenges: India ACC Battery Cell Manufacturing Market

Slow Commissioning Against PLI Milestones and Penalty Risk for Awarded Capacity

The sector faces a gap between awarded and installed capacity. Through December 31, 2025, installed capacity reached only 2.5% of the 40 GWh awarded under the PLI ACC scheme, and no beneficiary had claimed an incentive. Beneficiaries had invested INR 3,237 crore and created 1,118 jobs, well below the pace needed to meet milestone dates. The scheme carries penalties for missed commissioning targets, and part of the original allocation had to be offered again, with bids for 10 GWh of additional capacity invited in July 2026. Delays come from long lead times for imported coating, winding and formation equipment, the need to hire foreign technicians for start-up, and the time OEMs take to qualify new cells. Each month of delay keeps OEMs on imported cells and slows the scale effects that domestic plants need to compete on cost.

Import Dependence for Cathode, Anode, Separator, and Critical Minerals Across the Cell Supply Chain

Domestic cell makers depend heavily on imported materials. India has almost no commercial lithium refining, and cathode active material, graphite anode, separator film and electrolyte salts are still sourced mostly from China, Japan and Korea. China controls the bulk of global lithium refining and LFP cathode production, which leaves Indian cell makers exposed to export controls and price swings. The PLI ACC scheme requires value addition of 25% within two years and 60% within five years, which cannot be met without local materials. The National Critical Mineral Mission, launched in 2025 with an outlay of INR 16,300 crore, and duty exemptions on cobalt powder, lithium-ion battery scrap and 12 critical minerals are early steps. Domestic cathode and anode projects remain at pilot or early commercial stage, so material localization will lag cell assembly for several years.

Cost Gap Against Imported Cells and Thin Margins During Yield Ramp-Up

Domestic producers face a cost gap against imported cells. Global cell prices fell sharply in 2024 and 2025 on overcapacity in China, and imported LFP cells reach Indian pack makers at prices that new domestic plants cannot match while their lines run below rated output. Early-stage yields, scrap rates in electrode coating, energy use in dry rooms and depreciation on imported equipment all weigh on unit costs in the first two years of operation. Smaller pack assemblers often choose the cheapest cell available, which slows the shift to domestic supply. PLI incentives, which are paid only after production and value addition targets are met, offer limited cash support during ramp-up. Long-term offtake contracts with OEMs and storage developers, higher yields, and local materials are needed to close the gap for Indian producers.

Key Market Trends: India ACC Battery Cell Manufacturing Market

Shift Toward LFP, LMFP, and Sodium-Ion Chemistries in India

The India ACC battery cell manufacturing market is shifting toward iron-based and cobalt-free chemistries. LFP holds 38% of 2025 cell value and is projected to reach 61% by 2032, as storage developers and three-wheeler OEMs favour its safety, cycle life and lower material cost. NMC remains important for electric two-wheelers and cars that need higher energy density, but its share is projected to fall from 54% to 29% over the same period. LMFP, which raises the voltage of LFP while keeping its cost profile, is moving from lab samples to pilot qualification, and sodium-ion cells are being developed by Reliance for stationary use where weight matters less. Exide Energy is starting with LFP cells before adding NMC, while Log9 has built expertise in LTO cells for fast-charging fleet use. This chemistry mix lowers dependence on nickel and cobalt across Indian cell output.

Large-Format Prismatic and 4680 Cylindrical Cells Gaining Share in Domestic Production

Form factors are changing as plants scale. Storage projects are moving to prismatic LFP cells of 280 Ah and above, which cut the number of cells, welds and connections per container and reduce system cost. In mobility, Ola Electric chose the 4680 cylindrical format for its Bharat Cell, betting on fewer cells per pack and better thermal behaviour, while other two-wheeler OEMs continue with 21700 cylindrical cells. Car makers are evaluating prismatic and blade-style LFP cells for cell-to-pack designs that raise pack energy density. Pouch cells serve niche uses in electronics and drones. Domestic plants are aligning their lines to these formats from the start, rather than building for small cylindrical cells that suit imports from established suppliers. By 2032, prismatic cells are projected to account for 49% of domestic cell value, helped by the rapid rise in storage demand.

Technology Licensing, Joint Ventures, and Backward Integration into Cell Materials

Indian cell makers are speeding up their learning curve through partnerships. Lucas-TVS has licensed semi-solid cell technology from 24M for a plant in Tamil Nadu, Exide Energy works with SVOLT on cell design and process know-how, and Amara Raja has a technology agreement with Gotion for LFP cells. Agratas draws on Tata Group engineering and its parallel 40 GWh project at Somerset in the United Kingdom. At the same time, cell makers are moving upstream into cathode, anode and recycling so they can meet PLI value addition rules. Reliance is building battery chemicals capacity at Jamnagar, and several players are partnering with recyclers to recover lithium, nickel and cobalt under the Battery Waste Management Rules. JSW has signed an MoU with Odisha for an EV and battery project with an investment of INR 40,000 crore. These moves are lifting localization levels across Indian cell plants.

Segmental Insights: India ACC Battery Cell Manufacturing Market

By Application: Electric Vehicles Segment Dominates the India ACC Battery Cell Manufacturing Market

The electric vehicles segment dominates domestic cell demand, accounting for 81% of 2025 value, driven by electric two-wheeler and three-wheeler volumes and by OEMs that build their own packs. Ola Electric is the largest captive user, while Exide and Amara Raja supply three-wheeler and two-wheeler pack makers. The EV share is projected to ease to 63% by 2032 even as EV cell value grows at a CAGR of 62.1%, because storage demand rises faster. Battery energy storage systems account for 11% of 2025 value and are projected to reach 31% by 2032, making BESS the fastest growing application. Industrial and telecom uses hold 5% of value, led by telecom tower backup and material handling equipment, while consumer electronics hold 3%, mostly from imported cell substitution in power banks and wearables. In 2025 and 2026, Ola Electric, Exide Energy and Amara Raja directed most of their initial output to mobility, reinforcing EV leadership.

By Cell Chemistry: NMC Leads Today While LFP Grows Fastest

NMC cells lead the domestic product mix today, holding 54% of 2025 value, mainly from Ola Electric 4680 cylindrical cells used in its scooters. LFP accounts for 38% of 2025 value and is the fastest growing chemistry, expanding at a CAGR of 79.8% to reach 61% of value by 2032, driven by storage containers, three-wheelers and entry-level cars. LTO, NCA and other chemistries make up the remaining 8%, led by fast-charging LTO cells for fleet use. LMFP and sodium-ion cells are projected to reach 4% of value each by 2032, as Reliance and other developers commercialize sodium-ion for stationary storage and LMFP for two-wheelers. Exide Energy, Amara Raja, Agratas, Waaree and Reliance have each prioritized LFP lines in their first phases, which will move the chemistry balance of Indian cell output toward iron-based cells well before 2030.

Regional Insights: India ACC Battery Cell Manufacturing Market

Regional analysis shows that South India accounts for 88% of 2025 domestic cell value, led by Ola Electric at Krishnagiri in Tamil Nadu, Exide Energy at Devanahalli in Karnataka, Amara Raja in Telangana, and Godi India in Hyderabad, supported by state EV and battery policies and a deep base of two-wheeler OEMs. West India holds 7% of 2025 value and is projected to reach 40% by 2032, as Agratas ramps its Sanand plant and Reliance brings its Jamnagar facility online in Gujarat. East India is projected to hold 9% of value by 2032, led by the JSW project at Cuttack and Paradip in Odisha. North India accounts for 4% of 2025 value, with demand from Haryana and Uttar Pradesh electronics and EV clusters, while Central India remains a small share. By 2032, South India is projected to hold 44% of value, as new capacity spreads across coastal Gujarat and Odisha, close to ports for imported materials.

Recent Developments: India ACC Battery Cell Manufacturing Market

• Indian cell makers recorded important capacity milestones in 2026. Exide Energy Solutions commissioned its 6 GWh Phase-I lithium-ion cell plant at Devanahalli, Bengaluru, starting with LFP cells for three-wheeler packs and planning NMC supply to OEMs by the end of the fiscal year. Amara Raja commissioned its INR 500 crore customer qualification plant in Telangana in July 2026, with an initial capacity of 60 MWh, and Agratas received its first process equipment at Sanand in September 2026.
• Policy support was extended through 2026. The Ministry of Heavy Industries invited bids in July 2026 for 10 GWh of additional capacity under the PLI ACC scheme, with bids opening in October 2026, and confirmed that land acquisition is complete for the 40 GWh already awarded. The National Critical Mineral Mission and customs duty exemptions on battery capital goods, cobalt powder, lithium-ion battery scrap and 12 critical minerals are lowering the cost of building and running cell plants. These steps support the India ACC battery cell manufacturing market forecast 2032.
• Private investment continued to flow into new plants. Waaree Energy Storage Solutions raised INR 1,003 crore for a 20 GWh cell and battery pack facility in January 2026, JSW is preparing a first 10 GWh phase in Odisha under its INR 40,000 crore MoU, and Reliance is building an initial 30 GWh per year battery facility at Jamnagar. Partnerships between Indian cell makers and technology licensors from China, the United States and Europe are positioning India as one of the fastest scaling cell producing nations.

Key Market Players: India ACC Battery Cell Manufacturing Market

• Ola Electric Mobility Limited
• Reliance New Energy Limited
• Rajesh Exports Limited
• Agratas Energy Storage Solutions Pvt. Ltd. (Tata Group)
• Amara Raja Energy & Mobility Limited
• Exide Energy Solutions Limited (Exide Industries)
• JSW Neo Energy Limited
• Waaree Energy Storage Solutions Pvt. Ltd.
• Lucas-TVS Limited
• Godi India Pvt. Ltd.
• Log9 Materials Scientific Pvt. Ltd.
• International Battery Company India Pvt. Ltd.
• HBL Engineering Limited

Report Scope

In this report, the India ACC Battery Cell Manufacturing Market has been segmented into the following categories, in addition to detailed analysis of key industry trends, market dynamics, competitive landscape, and growth opportunities across the forecast period:

• By Cell Chemistry
• Lithium Iron Phosphate (LFP)
• Nickel Manganese Cobalt (NMC)
• Nickel Cobalt Aluminium (NCA)
• Lithium Manganese Iron Phosphate (LMFP)
• Sodium-Ion
• Others (LTO, Solid-State)
• By Form Factor
• Cylindrical 18650
• Cylindrical 21700
• Cylindrical 4680 & Large Cylindrical
• Prismatic
• Pouch
• Blade
• Others
• By Cell Capacity
• Below 20 Ah
• 20 Ah to 50 Ah
• 51 Ah to 100 Ah
• 101 Ah to 300 Ah
• Above 300 Ah
• By Supply Model
• Captive OEM Production
• Merchant Cell Supply
• Joint Venture Supply
• Contract Manufacturing
• Technology Licensing Partnerships
• Export Supply
• By Application
• Electric Vehicles
• Battery Energy Storage Systems
• Consumer Electronics
• Industrial & Telecom
• By Geography
• North India
• South India
• West India
• East India
• Central India

Competitive Landscape

Company Profiles:

Detailed analysis of the leading companies operating in the India ACC Battery Cell Manufacturing Market, including business overview, product portfolio, strategic initiatives, competitive positioning, and recent developments.

Company Information

Detailed profiling and strategic analysis of additional market players (up to five companies), including emerging cell start-ups, sodium-ion and LTO cell developers, cathode and anode material producers, or regional pack makers moving into cell production.

The India ACC Battery Cell Manufacturing Market report is part of our ongoing research coverage. For early access, customised insights, or to confirm the release timeline, please contact our team at sarita@marketresearchoutlook.com