Business News | India's Rechargeable Battery Cells Demand to Reach 39% CAGR by 2030: Report
Get latest articles and stories on Business at LatestLY. India's demand for Advanced Chemistry Cells (ACC) will grow at a compound annual growth rate (CAGR) of 39 per cent between 2025 and 2030, according to a report by Nuvama.
New Delhi [India], July 24 (ANI): India's demand for Advanced Chemistry Cells (ACC) will grow at a compound annual growth rate (CAGR) of 39 per cent between 2025 and 2030, according to a report by Nuvama.
Advanced Chemistry Cells (ACC) refer to next-generation rechargeable battery cells, including Lithium-ion (LFP, NMC, LMFP, NCA), Sodium-ion, Solid-state, and other advanced chemistries.
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The report also noted that electric vehicle battery demand will expand at a CAGR of around 35 per cent during FY25-30. Simultaneously, the battery energy storage system (BESS) sector will witness a growth rate of 78 per cent CAGR over the same period.
"Today, lithium-ion accounts for more than 95% of global ACC demand," the report added.
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The report highlighted that India is transitioning from an importer of battery materials toward establishing a domestic battery chemicals ecosystem.
This domestic shift receives support from key government policy measures. The government launched the Rs 18,100 crore Production Linked Incentive (PLI) Scheme for ACC Batteries to establish 50 GWh (gigawatt-hour) of domestic cell manufacturing capacity.
Alongside the government initiative, commercial players expanded their projects significantly. The report stated that "over 10 manufacturers have announced around 178 GWh of battery manufacturing capacity, creating significant downstream demand for battery chemicals."
To secure the required raw materials for these developments, state policy addressed supply chains directly. The report mentioned that "The National Critical Mineral Mission (NCMM) has been introduced to strengthen domestic exploration, processing and recycling of critical minerals such as lithium, nickel, cobalt and graphite."
On the international front, the report mentioned a distinct growth trajectory for global markets compared to India's domestic pace.
Global demand for ACC will likely grow at a CAGR of around 20 per cent during CY25-30, before moderating to approximately 8 per cent during 2030-35.
Global supply of ACC will grow at a CAGR of 10 per cent between 2025 and 2030, and will later slow to a 4 per cent CAGR between 2030 and 2035.
This anticipated slowdown follows a period of rapid expansion. Between 2020 and 2026, global demand grew at a CAGR of 37 per cent, while global supply increased at a CAGR of 34 per cent. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)