India’s ACC Sector Faces Supply Gap, Industry Calls for Strong Policy Push

“India’s ACC ecosystem is at a critical growth stage, with demand for advanced chemistry cells projected at around 220–260 GWh by 2030 and around 800–900 GWh by 2035, mainly driven by electric mobility (60–70 percent) and stationary storage (30–40 percent). However, domestic manufacturing capacity stands at approximately 150–180 GWh, with only around 40–50 GWh expected to be operational soon, resulting in a 60–80 GWh supply gap and continued reliance on imports for cells and key materials like cathodes, anodes, and electrolytes. Over 80 percent of cell components are still imported. To address this, we need targeted support for component manufacturing, faster approvals, robust recycling and stronger local supply chains, especially as over 30 percent of battery costs come from materials such as graphite and lithium. Timely execution and improved circularity are essential for long-term competitiveness,” said Debmalya Sen, President of India Energy Storage Alliance at the recently concluded Stationary Energy Storage India (SESI) 2026.

The summit, organised by IESA and Customised Energy Solutions (CES), witnessed the participation of over 450 industry leaders from more than 10 countries. They highlighted the sector’s pressing challenges and opportunities, repeatedly calling for strong and coordinated government action to drive growth and position India at the forefront of the global clean energy transition.

Kumar M, Founder, Smart Grid Analytics, highlighted, "India is uniquely positioned to shape the future of global energy storage. With our technical talent and ambitious goals, we have every opportunity to lead the way in smart, resilient power systems. To fully realise this potential, I encourage policymakers to champion investments not only in cutting-edge hardware, but also in the intelligence, software, analytics and digital infrastructure that turns our assets into true value creators. Equally, our success will depend on building a workforce skilled in data, automation and cloud-based operations. By fostering policies that nurture innovation, quality and talent development, the government can ensure India’s energy storage sector sets new global standards for reliability and performance."

Industry leaders agreed that India’s success will hinge on nurturing a skilled workforce able to leverage new technologies across the value chain.

Samir Patel, Chief, Technology and Operations, BESS Energy Division, SPML, emphasised,  "Over the past year, we’ve seen strong policy momentum, VGF, storage obligations, and a big push for domestic value addition. The 50 percent localisation target is bold, but real self-reliance requires securing critical minerals and achieving technological leadership, not just assembly. Localisation only matters if we meet global standards for performance, reliability, and cost. Policy must also address raw material pricing, especially lithium carbonate indexing; relying on China’s SMM index leaves us vulnerable. The policy foundation is strong, but now we need a unified national framework, one that enables seamless, large-scale BESS industrialisation, avoids fragmented state policies and brings together minerals, testing, skills, and offtake under a single, sustained strategy.”

The industry is pressing for cohesive support measures to help local firms scale and compete globally.

Himanshu Jadhav, CEO of Jendamark, said, "India’s energy sector is booming, but we still depend heavily on neighbouring countries for machinery and equipment, and face a shortage of skilled manpower. At Jendamark, we’ve tackled these challenges by manufacturing our own machines in our Pune facility and developing software that enables even low- or semi-skilled operators to run complex assembly lines, reducing reliance on foreign technology and addressing workforce gaps in the sector.

A unified framework is seen as vital to unlock large-scale investments and accelerate domestic innovation.

Satish Reddy, Founder of X-Battery, shared the pressing needs of startups and manufacturers and shared, "As the founder of X-Battery, I believe that startups like ours need key government support in several areas. In particular, we need assistance with the smooth import of essential components required for BMS, such as PCBs and other printed circuit board parts. Additionally, we would like to see safeguards put in place to protect against the influx of cheap Chinese BMS imports. These measures would strengthen local companies, enabling them to create long-term value and develop export capabilities."

As SESI 2026 concluded, industry leaders made a unified call for swift government action to close India’s energy storage supply gap. The sector’s future now depends on bold policy moves to boost domestic manufacturing, secure critical materials, and position India as a global clean energy leader.