New Delhi: India’s demand for Advanced Chemistry Cells (ACC), the next generation of rechargeable battery technologies, is expected to grow at a 39% compound annual growth rate (CAGR) between 2025 and 2030, driven by rising electric vehicle adoption and rapid expansion of battery energy storage systems, according to a report by Nuvama, ANI reported.
The report said demand for electric vehicle batteries is projected to grow at a 35% CAGR during FY25-FY30, while the battery energy storage system (BESS) segment is expected to record an even faster 78% CAGR over the same period.
Advanced Chemistry Cells include lithium-ion batteries, such as LFP, NMC, LMFP and NCA chemistries, as well as sodium-ion, solid-state and other next-generation rechargeable battery technologies. Lithium-ion batteries currently account for more than 95% of global ACC demand, the report noted.
Nuvama said India is gradually moving from being an importer of battery materials towards developing a domestic battery chemicals ecosystem, supported by government policies and private sector investments.
The government has launched a ₹18,100-crore Production Linked Incentive (PLI) scheme for ACC batteries to establish 50 GWh of domestic cell manufacturing capacity. In addition, more than 10 manufacturers have announced plans to set up around 178 GWh of battery manufacturing capacity, creating significant downstream demand for battery materials and chemicals.
To strengthen raw material security, the government has also introduced the National Critical Mineral Mission (NCMM) to boost domestic exploration, processing and recycling of critical minerals such as lithium, nickel, cobalt and graphite.
Globally, ACC demand is expected to grow at a 20% CAGR between 2025 and 2030 before moderating to around 8% during 2030-35. Global ACC supply is projected to expand at a 10% CAGR through 2030 and slow to 4% over the following five years.
The report noted that the expected moderation follows a period of rapid expansion, during which global ACC demand grew at a 37% CAGR and supply increased at a 34% CAGR between 2020 and 2026.
