India's EV Battery Manufacturing Capacity Surges to 8.7 GWh

India has achieved remarkable milestones in bolstering its domestic electric vehicle battery manufacturing ecosystem. Installed battery storage capacity across the country has surged significantly, reaching approximately 8.7 GWh by mid-2026 compared to about 0.78 GWh at the close of 2025. This exponential scaling highlights the rapid industrial transition toward self-reliance in core electric vehicle supply chains and energy storage systems.

Leading industrial heavyweights are spearheading this transformation through massive manufacturing investments. Tata's Agratas is currently constructing a colossal 40 GWh gigafactory at Sanand, Gujarat, while Ola Electric has commissioned roughly 1.4 GWh of cell capacity at Krishnagiri with a target of reaching 5 GWh. Concurrently, Exide Industries operates an active lithium-ion cell facility, Reliance Industries is scaling up solar-integrated battery production, and JSW has charted plans for a phased 30 GWh lithium-ion plant.

The central government's Production Linked Incentive scheme for Advanced Chemistry Cells, backed by a substantial outlay of ₹18,100 crore, continues to act as the primary catalyst for these large investments. These targeted financial measures are successfully seeding tens of gigawatt-hours of domestic cell manufacturing capacity across multiple states. Component suppliers and automotive OEMs are expected to lock in long-term domestic supply agreements as these gigafactories transition to full-scale commercial operations.

Accelerated domestic cell manufacturing substantially reduces import dependency for listed players like Tata Motors and Exide, boosting long-term margin stability and investor confidence.