CivilsWisdom.
Updated · Today
Science & Technology May 14, 2026 4 min read Daily brief · #17 of 22

India EV battery demand to grow tenfold to 200 GWh by 2032: IESA

The Indian Energy Storage Alliance (IESA), in association with Customized Energy Solutions (CES), projects India's electric vehicle battery demand to grow te...

GS Paper 3 (Infrastructure Science & Technology Economic Development)

What Happened

  • The Indian Energy Storage Alliance (IESA), in association with Customized Energy Solutions (CES), projects India's electric vehicle battery demand to grow tenfold — from approximately 20 GWh in 2025 to 200 GWh by 2032.
  • The report, titled "India EV and EV Component Market Outlook 2025–2034," underscores that India's EV opportunity has evolved beyond vehicle manufacturing into battery localisation, supply chain development, and advanced component ecosystems.
  • NMC (Nickel Manganese Cobalt) chemistry currently dominates the electric two-wheeler segment at a 70% market share, while LFP (Lithium Iron Phosphate) chemistry is rapidly gaining ground in other vehicle segments due to its lower cost and improved safety profile.
  • The report positions battery localisation and resilient supply chains — not just EV sales — as the primary strategic opportunity, signalling a major industrial transformation akin to what semiconductors represent in electronics.
  • The EV growth is driven by policy support through schemes such as PM E-DRIVE, PLI for Advanced Chemistry Cell (ACC) batteries, and the transition from the completed FAME-II scheme.

Static Topic Bridges

FAME India Scheme and PM E-DRIVE

The Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME India) scheme was launched by the Ministry of Heavy Industries in 2015 to promote EV adoption through demand incentives. FAME Phase II was implemented from April 1, 2019, with an outlay of ₹11,500 crore for five years. The scheme has since been succeeded by PM E-DRIVE.

  • FAME II (2019–2024): ₹11,500 crore outlay; Ministry of Heavy Industries
  • PM E-DRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement): notified September 29, 2024; ₹10,900 crore outlay; two-year scheme (October 2024 – March 2026)
  • PM E-DRIVE covers e-2W, e-3W, e-trucks, e-buses, e-ambulances, EV public charging stations, and testing agency upgradation
  • ₹2,000 crore earmarked specifically for EV public charging infrastructure under PM E-DRIVE
  • Together, FAME-II and PM E-DRIVE facilitated over 26,000 charging stations and 1,000+ battery-swapping points

Connection to this news: The projected tenfold growth in battery demand is a direct downstream consequence of sustained demand-side incentives under FAME and PM E-DRIVE, which have made EVs commercially attractive across segments.

PLI Scheme for Advanced Chemistry Cell (ACC) Battery Manufacturing

To complement demand-side incentives, the government approved the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) battery manufacturing on May 12, 2021, with a budgetary outlay of ₹18,100 crore. The scheme aims to establish 50 GWh of domestic ACC battery manufacturing capacity, reducing India's dependence on imports.

  • Nodal Ministry: Ministry of Heavy Industries
  • Outlay: ₹18,100 crore
  • Target: 50 GWh domestic ACC manufacturing capacity
  • ACC battery chemistries covered: LFP, NMC, Solid-State, Zinc-Air, Sodium-Ion, and others
  • PLI-Auto Scheme (approved September 23, 2021): ₹25,938 crore outlay for automobile and auto component manufacturing, complementing ACC-PLI
  • Combined, these schemes aim to position India as a global EV and battery manufacturing hub

Connection to this news: The IESA report's emphasis on battery localisation as the "next leap" aligns precisely with the ACC-PLI scheme's goal — the 200 GWh demand projection by 2032 creates the market scale needed to justify the large capital investments PLI incentivises.

IESA is the apex industry association representing India's energy storage ecosystem, encompassing battery manufacturers, EV companies, storage integrators, and technology providers. Its annual India Energy Storage Week is a key policy-industry convergence platform.

  • LFP (Lithium Iron Phosphate): Lower energy density, but safer, longer-cycle-life, lower cost; preferred for EVs where weight is less critical (e-buses, e-trucks, stationary storage)
  • NMC (Nickel Manganese Cobalt): Higher energy density; preferred for two-wheelers and passenger cars where range and weight matter
  • The global shift toward LFP is driven by China's dominance in LFP production and the chemistry's supply chain advantages (no cobalt dependency)
  • India currently imports over 80% of its lithium-ion cells; the ACC-PLI aims to reverse this

Connection to this news: The chemistry shift from NMC to LFP described in the IESA report directly determines which raw materials India needs to secure — lithium, iron phosphate — shaping India's critical mineral diplomacy and mining policy priorities.

Key Facts & Data

  • India's EV battery demand in 2025: approximately 20 GWh
  • Projected EV battery demand by 2032: 200 GWh (tenfold growth)
  • FAME II outlay: ₹11,500 crore (April 2019 – 2024); Ministry of Heavy Industries
  • PM E-DRIVE outlay: ₹10,900 crore (October 2024 – March 2026)
  • PLI-ACC outlay: ₹18,100 crore; target: 50 GWh domestic manufacturing capacity
  • PLI-Auto outlay: ₹25,938 crore
  • NMC chemistry market share in e-2W segment: 70%
  • LFP chemistry: gaining share in buses, trucks, and stationary storage
  • IESA: Indian Energy Storage Alliance — apex industry body for energy storage sector
  • Key strategic opportunity identified: battery localisation and supply chain development, not just vehicle sales
On this page
  1. What Happened
  2. Static Topic Bridges
  3. FAME India Scheme and PM E-DRIVE
  4. PLI Scheme for Advanced Chemistry Cell (ACC) Battery Manufacturing
  5. Indian Energy Storage Alliance (IESA) and Battery Chemistry Trends
  6. Key Facts & Data
Display