India’s electric vehicle (EV) industry is on the cusp of a significant transformation, driven by a projected 14-fold increase in demand for EV batteries by 2032. According to a report by Customised Energy Solutions (CES), battery demand is expected to rise from 17.7 gigawatt-hours (GWh) in 2025 to 256.3 GWh by 2032, representing a compound annual growth rate of 35%. This rapid growth is attributed to various factors, including higher fuel costs, growing consumer interest in EVs, and supportive government policies.
The report highlights significant advancements in battery chemistry and performance, particularly in lithium-ion batteries, including lithium iron phosphate (LFP) and nickel cobalt manganese (NCM). These newer batteries offer improved energy density, safety, and lower costs, enabling longer driving ranges and potential cost savings for vehicle manufacturers and consumers. The latest generation of LFP cells, for instance, offers energy density above 300 watt-hours per kilogram.
The report also notes the growing importance of sodium-ion and solid-state batteries, which are expected to support a wide range of vehicles, from two-wheelers to commercial fleets. Indian companies, such as Tata Agratas, Ola Electric, and Amara Raja, are scaling up production and investing in multiple battery chemistries, including sodium-ion solutions.
However, the sector faces challenges, including supply chain vulnerabilities, high investment costs, and continued reliance on imported raw materials. Dr. Hina Badgujar of Customised Energy Solutions cautioned that the rapid rise in EV demand is reshaping the entire battery ecosystem, and the coming years will be crucial in determining how sustainably India can power its transport and energy transition.
The Indian government’s supportive policies, including Corporate Average Fuel Efficiency norms and targeted incentives, have played a significant role in accelerating EV adoption and encouraging investments in battery manufacturing. According to Vinayak Walimbe, Managing Director of Customised Energy Solutions, advances in battery chemistry are central to India’s electric mobility push, and developments such as advanced LFP cells and sodium-ion batteries could make EVs cheaper, safer, and capable of traveling longer distances on a single charge. Overall, India’s EV industry is poised for significant growth, driven by advances in battery technology and supportive government policies.