India’s electric vehicle journey is set to enter a critical phase, with demand for EV batteries projected to increase more than 14 times by 2032, according to a new report by Customised Energy Solutions (CES), reports Manufacturing Today India.
The CES 2025 EV Battery Technology Review Report estimates that battery demand will rise sharply from 17.7 gigawatt-hours (GWh) in 2025 to 256.3 GWh by 2032, reflecting the rapid pace of electrification in the country’s automobile sector.
The report projects a compound annual growth rate of 35 per cent over the next seven years, driven by higher fuel costs, growing consumer interest in electric vehicles, quicker rollout of new EV models, and supportive policies at both the central and state levels.
Government steps such as Corporate Average Fuel Efficiency norms and targeted incentives have played a major role in speeding up EV adoption and encouraging investments in battery manufacturing. CES said these factors together mark a decisive moment for India’s auto industry.
The report points to significant progress in battery chemistry and performance. Newer lithium-ion batteries, including lithium iron phosphate (LFP) and nickel cobalt manganese (NCM), are delivering better energy density, improved safety and lower costs.
According to CES, the latest generation of LFP cells now offers energy density above 300 watt-hours per kilogram, enabling longer driving ranges and potential cost savings for vehicle makers and consumers.
Vinayak Walimbe, Managing Director of Customised Energy Solutions, said advances in battery chemistry are central to India’s electric mobility push. He noted that developments such as advanced LFP cells and the arrival of sodium-ion batteries could help make electric vehicles cheaper, safer and capable of travelling longer distances on a single charge.
The report also highlights the growing role 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, while others are investing in multiple battery chemistries, including sodium-ion solutions. At the same time, CES cautioned that the sector faces challenges such as supply chain vulnerabilities, high investment costs and continued reliance on imported raw materials.
Dr Hina Badgujar of Customised Energy Solutions said the rapid rise in EV demand is reshaping the entire battery ecosystem. She added that the coming years will be crucial in determining how sustainably India can power its transport and energy transition.
