India to Invest 500 Billion Rupees in BESS by 2033

India is stepping up investment in battery energy storage systems (BESS) to stabilize its power grid. The government plans to invest 500 billion rupees to deploy 50 gigawatt-hours (GWh) of BESS by 2033.

According to industry sources on Oct. 6, the Indian government approved the third phase of the Green Energy Corridor (GEC-III) on Sept. 30. The project will expand transmission networks and BESS in line with the country’s growing renewable energy capacity. India plans to build transmission infrastructure capable of accommodating up to 135 gigawatts (GW) of renewable energy by 2033. It will also install 50 GWh of BESS.

The total project cost is 1.864 trillion rupees. Of that amount, 500 billion rupees has been allocated for BESS deployment. The government has not disclosed detailed conditions for the batteries to be used in the project, including battery chemistry, storage duration and procurement methods. The actual amount spent on batteries and systems could vary depending on those conditions.

On a simple calculation, India will need more than 7 GWh of batteries annually for grid-scale energy storage systems (ESS) alone. But local battery production capacity is only about 2 GWh a year, meaning the country will have to rely heavily on imports. India has largely met demand through imports as it was late to establish a lithium-ion battery manufacturing base. Chinese-made batteries accounted for 75.2% of India’s lithium-ion battery imports in fiscal 2024-25.

According to the India Energy Storage Alliance (IESA), India’s lithium-ion battery production capacity could reach 60 GWh to 70 GWh by 2030 if announced investment plans are implemented as scheduled. Over the same period, capacity for assembling battery packs and BESS using imported cells is expected to rise to 180 GWh to 220 GWh. Local cell production is therefore expected to lag well behind the expansion of BESS manufacturing capacity.

Wood Mackenzie estimates that it will take India 10 to 15 years to build a self-sufficient battery industry with competitive pricing. It estimates that locally produced battery cells will cost 25% to 40% more than imported cells. High financing costs and an underdeveloped battery-materials supply chain are among the reasons. As India needs time to expand domestic battery production, it will have to rely on overseas technology and supply chains for the time being. That could create an opportunity for Korean companies to enter the market.

Indian companies have traditionally worked mainly with Chinese battery makers because of their price competitiveness. But the business environment is changing as political tensions between India and China persist. Korean companies are also seeking opportunities to enter the Indian market. AI battery startup DeltaX signed a memorandum of understanding (MOU) with Toptec in July to cooperate on targeting India’s ESS market.

“India is expanding localization across its renewable energy industry, including requiring the use of domestically produced solar panels,” DeltaX Chief Executive Kim Soo-hoon said. “Local solar and renewable energy companies are also expanding into assembling and selling battery modules and packs for ESS, and are actively considering cooperation with companies outside China.”

The growing adoption of Korean-made battery equipment in India is another positive factor. A key example is a battery plant with annual capacity of 40 GWh being built in India by Agratas, a Tata Group company. A number of Korean battery-equipment makers, including Yunsung F&C, PNT, Philenergy, Hana Technology, J's Robotics and Axvis, have been selected as suppliers for the project.

Business by Korean battery manufacturers in India remains limited. LG Energy Solution and Samsung SDI operate local sales subsidiaries, but their main business is supplying small batteries for smartphones and other information-technology devices. Their operations in India remain small in both scope and scale compared with major overseas markets such as North America and Europe. LG Energy Solution leads among companies in energy-related patents, having filed 2,225 patents in India.

“Indian ESS companies have traditionally sourced battery cells mainly from Chinese companies,” an industry official said. “They also prefer lithium iron phosphate (LFP) batteries, so opportunities for Korean battery companies to enter the Indian market could expand as they increase their LFP-related businesses.”

India also built a large-scale power grid under previous phases of the Green Energy Corridor program. Phase I involved about 9,100 kilometers of transmission lines, while Phase II is adding about 7,900 kilometers across seven states. As transmission investment expands under Phase III, demand is also expected to rise for power equipment from HD Hyundai Electric, LS ELECTRIC and Hyosung Heavy Industries, alongside BESS.