India’s Advanced Chemistry Cell Demand Projected to Hit 700 GWh by 2030

India is entering a period of rapid expansion in its Advanced Chemistry Cell (ACC) market, with demand expected to grow at a Compound Annual Growth Rate (CAGR) of 39% between 2025 and 2030. According to a research report by Nuvama, the nation's ACC demand is forecast to surge from approximately 40 GWh in 2025 to nearly 700 GWh by 2030. This exponential growth is primarily fueled by the accelerating adoption of electric vehicles and the widespread deployment of battery energy storage systems (BESS).

While electric vehicles remain a significant driver of demand, the BESS sector is poised for the most dramatic expansion. Projections indicate that BESS applications will grow at a CAGR of 78% over the same five-year period, reflecting a structural shift in how India manages its energy grid and renewable energy integration. This surge in demand is creating a massive opportunity for domestic manufacturing, as the country seeks to reduce its dependence on imported battery cells and establish a self-reliant energy storage ecosystem.

The government is actively supporting this transition through the ₹18,100 crore Production Linked Incentive (PLI) scheme for ACC batteries. This policy is designed to catalyze the establishment of 50 GWh of domestic cell manufacturing capacity, providing the necessary infrastructure to meet the projected demand. By incentivizing local production of battery materials and manufacturing, the government aims to secure the supply chain for the future of mobility and energy storage, positioning India as a key player in the global battery market.