01 Market landscape
India has ambitious new energy targets: 500 GW of renewable capacity by 2030 and a 30% share of EVs in vehicle sales, which directly creates huge battery demand. India's battery market is forecast to grow from about RMB 50 billion in 2025 to about RMB 130 billion by 2030.
To meet these targets the government combines carrots and sticks: large financial support and tax incentives on one hand, and on the other, policies such as the Production Linked Incentive (PLI) scheme that require higher local content to qualify for subsidies.
The effect is clear, but data show that 75% of all batteries India imported in 2023-24 came from China, and the domestic industrial base remains weak.
02 The rise of local companies
Indian companies are accelerating their presence in the battery supply chain through their own investment, technology partnerships and vertical integration.
Tata Group's battery business Agratas is rapidly building a world-class battery plant in Sanand, Gujarat, with planned first-phase capacity of 20 GWh, seen as key to strengthening India's advanced battery manufacturing.
Himadri is focusing on battery materials. It is building in Odisha what it describes as the first commercial LFP cathode active material plant outside China, with long-term capacity of up to 200,000 tonnes a year, aiming to become a "China+1" alternative supplier.
Amara Raja Energy & Mobility is focusing on acquiring and developing cell manufacturing technology. Its commercial pilot lithium-ion cell plant is in the late stages of construction and is due to start production by the end of FY2025-26 (March 2026), while its first-phase scaled cell facility, also under construction, will provide 2 GWh a year with room to expand to 16 GWh.
Nash Energy, which describes itself as India's first large-scale LFP cell manufacturer, already has capacity in Bengaluru and plans a gigafactory of about 10 GWh in phases.
03 Deep involvement of Chinese companies
Facing a vast market, Chinese battery supply-chain companies are taking part through exports, technology licensing and localized cooperation.
Exports and large orders
Chinese technology and cost advantages make Chinese companies highly competitive in India. In September 2025 renewable energy producer ACME Solar ordered a 2 GWh battery storage system from a subsidiary of CATARC New Energy, part of more than 5 GWh of storage it bought from Chinese suppliers that year.
More strikingly, in August 2025 the company signed a memorandum with IndiGrid, India's largest power infrastructure investment trust, for 5 GWh of storage systems in 2026-27, the largest single China-India new energy order to date and the first time a Chinese company has entered India's mainstream grid with a system-level, long-term service model.
Technology cooperation and local production
Beyond direct exports, more Chinese companies are building long-term positions in India through technology licensing, equipment supply and local plants.
SVOLT signed an agreement with Exide Energy to help build a 6 GWh lithium battery plant in India.
Gotion licensed its LFP battery technology to Amara Raja and is supporting construction of its battery plant in India.
· CALB has formed a long-term exclusive partnership with Ashok Leyland, India's second-largest commercial vehicle maker, planning to invest more than INR 500 billion (about RMB 40.45 billion) in battery manufacturing over the next 7-10 years.
04 Strategies of other foreign companies
Companies from other countries are entering India with different strategies, and some Indian companies are partnering with Western technology firms to avoid reliance on Chinese technology.
· Nash Energy and US company Rincell: under a memorandum of understanding, Rincell will transfer its high-rate NMC cell technology to Nash Energy for local production to serve drones, defence, aerospace and EVs.
· Reliance Industries' setback: not every technology transfer goes smoothly. Reliance had planned to license technology from a leading Chinese LFP storage battery company to build cell capacity quickly, but talks stalled after China tightened oversight of overseas transfer of key technologies, and Reliance shelved its local battery production plans.
05 Challenges ahead
Despite bright prospects, India's battery industry faces many challenges.
· Fragile supply chain: India lacks lithium and depends heavily on imports, and this uncertainty is a key obstacle.
· Complex policy environment: government policy toward foreign investors is somewhat contradictory, encouraging foreign capital while setting high local content thresholds through schemes such as PLI, and frequent policy changes add uncertainty.
· Technology dependence: as the Reliance case shows, acquiring core technology, especially advanced battery technology without China, is not easy for Indian companies.
06 Outlook
India's battery industry will see competition among Chinese, Japanese, Korean and local players. In the short term Chinese companies retain clear advantages in technology integration and cost.
In the medium to long term, the winner will be whoever first achieves high-yield, low-cost scaled manufacturing in India. The three-part strategy of technology, capital and localization adopted by Chinese companies may be a viable path to long-term success in India's complex market.
India's vast potential means this "dance of the dragon and the elephant" will not end soon; for all participants it is a marathon of patience, adaptability and strategic depth.