India’s battery supply chain could be on the verge of transformation, as Gautam Adani’s recent visit to Chinese battery giant CATL hints at a possible strategic partnership that would align with the country’s accelerating clean energy trajectory.
The high-level discussions between the Adani Group Chairman and CATL’s top management come amid a critical inflection point for India’s energy storage ambitions—projected to require over 120 GWh of batteries by 2030.
The talks, confirmed by CATL’s South Asia Director Wang Xu via social media, included a comprehensive tour of the firm’s automated manufacturing lines and exposure to its ‘Cell + Module + Container’ energy storage system design. Discussions also touched on sodium-ion battery R&D—an emerging technology that could offer cost and safety advantages in hot climates like India’s.
India’s recent policy recalibrations—particularly import duty exemptions on battery cell manufacturing equipment—suggest a concerted push toward building domestic gigafactories. The government has also backed major energy storage tenders, including 6.1 GW of standalone BESS slated for Q1 2025, signaling growing urgency to localize battery value chains.
Adani, with established infrastructure and deep capital reserves, is uniquely positioned to scale battery production in line with these targets. A collaboration with CATL, the world’s largest EV battery supplier—holding over 34% global market share—would provide access to advanced technologies such as LFP (lithium iron phosphate) and sodium-ion chemistries, which are increasingly favored for stationary and mobility applications in emerging markets.
India currently relies heavily on battery imports, which exposes its energy transition to geopolitical and supply chain risks. A localized gigafactory—potentially through an Adani-CATL joint venture or licensing model—could reduce these dependencies. LFP cells, in particular, are well-suited to India’s grid storage and e-mobility needs due to their thermal stability, cost efficiency, and absence of cobalt and nickel—critical minerals that India does not currently mine at scale.
Moreover, CATL’s advanced containerised solutions like the 6.25 MWh TENER system could serve India’s booming commercial and industrial (C&I) segments, including data centres, telecoms, and hospitals. Local manufacturing could dramatically reduce landed costs, ensuring economic viability for wide-scale deployment.
Grid reliability is a growing concern as India rapidly scales intermittent solar and wind generation. Co-located BESS installations are becoming a preferred solution to mitigate curtailment and voltage instability. Adani’s potential battery production capacity could support this need, complementing the company’s renewable portfolio and recently expanded EV charging infrastructure.
By integrating battery storage into its natural gas, transport, and utility operations, Adani could create end-to-end energy ecosystems—a key differentiator as the market matures. For Indian EV manufacturers, local cell availability could address the single largest cost bottleneck, enhancing competitiveness and supply chain control.
Given India’s scrutiny of Chinese FDI, a partnership via an Indian conglomerate could offer CATL a path into the market without triggering regulatory barriers. The arrangement could also include provisions for tech transfer or joint R&D initiatives—building Indian capabilities while protecting strategic interests.
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