India’s electric vehicle (EV) battery market is at the cusp of significant transformation and exponential growth, with demand forecast to leap from 17.7 GWh in 2025 to a staggering 256.3 GWh by 2032, highlighting a 14-fold surge according to Customized Energy Solutions’ (CES) newly released 2025 EV Battery Technology Review Report. This explosive growth is driven by India’s push toward electrification, with rising fuel prices, strong consumer demand, rapid model launches, and robust policy support all converging to create a unique growth environment. The report notes that a compound annual growth rate (CAGR) of 35% is expected over the next seven years, signalling a seismic shift in the nation’s automotive sector.
As electric mobility accelerates worldwide, the report provides deep insights into breakthroughs in chemistry, performance, advancements, and manufacturing strategies shaping next-generation battery systems. The CES report, widely regarded as one of the most comprehensive technology assessments in the sector, attributes this sharp rise in battery demand to a convergence of factors: persistent high fuel prices, robust consumer appetite for EVs, an influx of new models, and aggressive policy support at both national and state levels. The government’s push through Corporate Average Fuel Efficiency (CAFÉ) norms and targeted incentives has been instrumental in propelling adoption and catalysing investment in battery manufacturing.
Vinayak Walimbe, Managing Director, Customised Energy Solutions, said, “Breakthroughs in battery chemistry are at the core of India’s EV revolution. Innovations like LFP Gen 4 and the emergence of sodium-ion technology are not just technical upgrades; they’re game-changers that will make electric vehicles more affordable, safer, and able to go farther on a single charge. This is what will truly open the door for millions of Indians to embrace electric mobility and drive the next big leap in our auto industry.”
At the heart of this growth story is a revolution in battery chemistry. Global advances are pushing lithium-ion batteries, especially next-generation LFP (lithium iron phosphate) and NCM (nickel cobalt manganese) technologies, to new heights of energy density, safety, and cost competitiveness. The report notes that LFP Gen 4 cells are now exceeding 300 Wh/kg, enabling longer driving ranges and potentially lower vehicle prices. Meanwhile, sodium-ion and solid-state batteries are entering the market, offering solutions tailored for India’s diverse vehicle classes, from two and three-wheelers to premium passenger cars and commercial fleets.
Dr. Hina Badgujar, Customised Energy Solutions, said, “As India’s appetite for electric vehicles grows, the entire battery ecosystem is evolving at breakneck speed. The convergence of policy support, advanced battery manufacturing, and new chemistries means we’re not just catching up with global trends, we’re setting the pace for affordable and reliable electric mobility tailored to India’s unique needs. The next few years will be pivotal in shaping a sustainable future for our nation’s transport and energy sectors.”
Indian battery manufacturers are responding with major capacity expansions and technology diversification. Tata Agratas, Ola Electric, and Amara Raja are scaling up NCM production, while dual-chemistry (LFP + NCM) lines and sodium-ion initiatives led by firms like KPIT are expected to define India’s affordable EV and stationary storage segments. Exide Industries, in collaboration with SVOLT, is building gigafactories aligned to global benchmarks, while JSW Group is making strategic upstream investments in raw materials and components. Major OEMs such as Ather, Piaggio, Hyundai, and Kia are also forming partnerships to tailor battery portfolios to specific market needs.
However, the report flags persistent challenges that need to be urgently addressed through targeted policy intervention, strategic investments, and enhanced industry collaboration to ensure India can meet its electrification goals and establish a resilient domestic battery ecosystem. China’s export controls on critical materials and battery know-how, including synthetic graphite, are slowing gigafactory buildouts and exposing the supply chain to risk. High upfront capital requirements, limited domestic mineral reserves, and ongoing technology dependence remain substantial obstacles to India’s ambition for self-reliant battery manufacturing at scale.
The EV Battery Technology Report 2025 delivers actionable insights for OEMs, investors, and policymakers. It examines advances in next-generation battery chemistries (LFP, NMC, LMFP, solid-state, sodium ion), enhancements in cell architecture and pack-integration that improve energy density, comprehensive pack-level cost breakdowns and emerging cost trends, along with an assessment of cell-to-pack losses arising from thermal, structural, and electrical integration, collectively informing India’s electrification pathway.