India will have a battery storage potential of 600 gigawatt hour (GWh) by 2030, and demand for electric vehicles, stationary storage and consumer electronics will mainly drive adoption of battery storage, a Niti Aayog report said.
The report further said a coherent regulatory framework incentivizing all stakeholders to participate in the recycling process will help in the development of a battery recycling ecosystem in the country.
“Based on our analysis, the total cumulative potential for battery storage in India will be 600 GWh by 2030 considering a base case scenario and with segments like EVs and consumer electronics projected to be major demand drivers for the adoption of battery storage in India,” it said.
According to the report, the current deployment of lithium-ion batteries (LIBs) in India is dominated by consumer electronics, which comprises smartphones, laptops, notebooks, tablets and is further expected to grow with the digitalization of platforms and the integration of technology in day-to-day life.
“In India, segments like electric vehicles (EVs), stationary storage and consumer electronics are projected to be major demand drivers for the adoption of battery storage,” the report titled ‘Advanced Chemistry Cell Battery Reuse and Recycling Market in India’ said.
The report pointed out that in 2020, consumer electronics energy storage was the biggest market for LIBs, with a cumulative market of 4.5 GWh, though EV sales accounted for around 10 per cent of the LIB market (0.92 GWh).
As per the report, between 2010 and 2020, the global demand for batteries grew at a compound annual growth rate (CAGR) of 25 per cent to reach an annual demand of about 730 GWh.
By 2030, the demand for batteries is expected to grow four folds to reach an annual rate of 3,100 GWh, it said, adding this shows a growth of 16 per cent CAGR through 20202030.
The report noted that the electrification of transportation and battery energy storage in electricity grids are expected to be the key drivers in the growth of battery demand.