New Delhi: India’s electric vehicle (EV) battery market demand will surge from 17.7 GWh in 2025 to a staggering 256.3 GWh by 2032, according to a Customized
Energy Solutions’ (CES) report on Friday.
This explosive growth is driven by India’s push toward electrification, with rising fuel prices, strong consumer demand, rapid model launches, and robust policy support, all converging to create a unique growth environment, the 2025 EV Battery Technology Review Report said.
It notes that a compound annual growth rate (CAGR) of 35 per cent is expected over the next seven years, signalling a seismic shift in the nation’s automotive sector.
As electric mobility accelerates worldwide, the report provides deep insights into breakthroughs in chemistry, performance, advancements, and manufacturing strategies shaping next-generation battery systems.
“Breakthroughs in battery chemistry are at the core of India’s EV revolution. Innovations like LFP Gen 4 and the emergence of sodium-ion technology are not just technical upgrades; they’re game-changers that will make electric vehicles more affordable, safer, and able to go farther on a single charge,” Vinayak Walimbe, Managing Director, CES said in a statement.
At the heart of this growth story is a revolution in battery chemistry. Global advances are pushing lithium-ion batteries, especially next-generation LFP (lithium iron phosphate) and NCM (nickel cobalt manganese) technologies, to new heights of energy density, safety, and cost competitiveness.
The report notes that LFP Gen 4 cells are now exceeding 300 Wh/kg, enabling longer driving ranges and potentially lower vehicle prices. Meanwhile, sodium-ion and solid-state batteries are entering the market, offering solutions tailored for India’s diverse vehicle classes, from two and three-wheelers to premium passenger cars and commercial fleets.
Hina Badgujar, CES said: “The next few years will be pivotal in shaping a sustainable future for our nation’s transport and energy sectors.” Indian battery manufacturers are responding with major capacity expansions and technology diversification.
However, the report flags persistent challenges that need to be urgently addressed through targeted policy intervention, strategic investments, and enhanced industry collaboration to ensure India can meet its electrification goals and establish a resilient domestic battery ecosystem.
China’s export controls on critical materials and battery know-how, including synthetic graphite, are slowing gigafactory buildouts and exposing the supply chain to risk. High upfront capital requirements, limited domestic mineral reserves, and ongoing technology dependence remain substantial obstacles to India’s ambition for self-reliant battery manufacturing at scale.
Established in 1998, CES assists clients in managing and staying ahead of the changes in the energy markets.
CES is the pioneer for setting up the India Energy Storage Alliance (IESA), which is a premier industry body dedicated to promoting energy storage, e-mobility, and green hydrogen adoption in India.
