July 22, 2026 at 02:54 AM 2 min readautoNews Insights
India Accelerates EV Battery Manufacturing With Massive PLI Investments
[Manufacturing Surge]:
India is rapidly building a self-reliant electric vehicle ecosystem, with major players like Tata Group, Exide Industries, and Ola Electric investing heavily in cell manufacturing and battery assembly. The market is projected to reach USD 191,037.2 million by 2034, growing at a CAGR of 54.94%.
[Government Support]:
The government has committed ₹18,100 crore under the Advanced Chemistry Cell Production Linked Incentive scheme to establish 50 GWh of domestic capacity. A new tender for the final 10 GWh was floated on July 15, 2026, specifically targeting grid-scale stationary energy storage to support the national grid.
[Capacity Expansion]:
Installed Battery Energy Storage System capacity has risen elevenfold to 8.7 GWh in the first half of 2026. Companies are scaling operations aggressively, with Amara Raja committing ₹9,500 crore over ten years for lithium-ion manufacturing, while Exide Industries is investing ₹3,620 crore to build a 12 GWh facility, marking a significant step toward domestic energy independence.
Pulse Intelligence
Context & ImpactContext & Background
- The Indian EV market was valued at USD 3,712.2 million in 2025.
- The ACC PLI scheme was designed to reduce reliance on imported battery cells for the EV sector.
- BESS capacity stood at 0.78 GWh in December 2025 before the recent rapid expansion.
Key Consequences
- Domestic battery production will significantly lower the cost of electric vehicles for Indian consumers.
- The focus on grid-scale storage will improve the stability of renewable energy integration in the national grid.
- India will reduce its dependence on imported lithium-ion cells, strengthening the local supply chain.
Market & Economic Impact
Substantial investments in battery manufacturing are expected to drive long-term growth for energy and automotive stocks.
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