India’s electric vehicle battery demand is projected to expand from 17.7 GWh in 2025 to 256.3 GWh by 2032, according to a new report from Customized Energy Solutions (CES).
The scale of this projected growth, reflecting a 35% CAGR, signals a fundamental restructuring of India’s automotive sector as electrification becomes economically and politically inevitable.
Rising fuel prices, accelerating model launches, and ongoing policy incentives continue to drive domestic EV adoption, but CES argues that battery-chemistry innovations are becoming the decisive factor shaping competitiveness. The report highlights next-generation LFP (lithium iron phosphate) and NCM (nickel-cobalt-manganese) chemistries as the primary drivers of efficiency gains and cost reductions. Notably, LFP Gen 4 cells now surpass the 300 Wh/kg threshold, narrowing the energy-density gap with NCM while maintaining cost and safety advantages. CES Managing Director Vinayak Walimbe describes this phase as a shift enabling “more affordable, safer” EVs with extended range, an assessment aligned with global trends favoring high-durability chemistries for mass-market vehicles.
Sodium-ion batteries are also progressing from concept to early commercialization, offering an alternative for India’s price-sensitive two- and three-wheeler market. Combined with solid-state development pipelines, these technologies could diversify the battery portfolio needed across India’s broad vehicle classes, from entry-level mobility to commercial fleets. CES emphasizes that India’s manufacturers are responding with new capacity commitments and an increasingly technology-diverse strategy, although most projects remain in early stages of implementation.
Despite the optimistic demand outlook, CES outlines several structural challenges that risk slowing domestic battery manufacturing. Foremost is China’s tightening control over exports of critical battery materials and technical know-how, particularly synthetic graphite, delaying gigafactory buildouts and raising vulnerability in India’s supply chain. Limited domestic mineral reserves continue to constrain upstream localization, while high capital expenditure requirements slow the pace of new manufacturing investments. Technology dependence on foreign suppliers remains a key bottleneck for scaling competitive, fully localized cell production.
With India aiming to build a resilient domestic battery ecosystem, CES underscores the need for targeted policy interventions and stronger industry collaboration. As Hina Badgujar from CES notes, the coming years will be critical in shaping the nation’s transport and energy sectors, with battery technology emerging as the determining factor in whether India can meet its electrification goals.
