India’s goal to build 100 GWh of battery capacity by 2030 faces challenges as projects grapple with technology dependence on China and execution delays. While major players like Ola Electric and Reliance have received government timeline extensions, supply chain gaps in raw materials remain key concerns for investors monitoring the EV transition.
India’s ambitious plan to create 100 GWh of domestic battery manufacturing capacity is encountering significant hurdles, with the technology and supply chain remaining heavily dependent on Chinese partners. While the government has set aggressive targets to meet the expected electric vehicle demand by 2030, the gap between announced projects and actual operational output has widened. This reliance on external technology has become a growing concern as international regulations and export restrictions tighten, potentially complicating the path to self-sufficiency.
The Ministry of Heavy Industries has recently acknowledged these execution challenges by granting revised timelines under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage. Several companies have been allowed to extend their implementation windows through 2031. This extension recognizes that developing indigenous cell technology and setting up complex manufacturing lines is a capital-intensive and time-consuming process that goes beyond simple assembly.
Individual company progress has been mixed. Ola Electric, which is scaling its efforts, currently operates 2.5 GWh of cell manufacturing capacity and expects to reach 6 GWh in the near future. Reliance New Energy is in advanced stages of commissioning its gigafactory, with an initial target of 40 GWh. Meanwhile, other players are actively re-evaluating their strategies to reduce foreign dependency. Amara Raja, for instance, has shifted its focus toward strengthening internal research and development, moving away from its licensing partnership with China-based Gotion High-Tech. This strategic pivot highlights the industry’s concern regarding the vulnerability of relying on foreign technology providers, especially when export rules from Beijing change unexpectedly.
Governance and regulatory hurdles are also playing a role in the uneven progress of these projects. While some companies have received deadline extensions from the government, Rajesh Exports has been excluded from these benefits due to an ongoing SEBI investigation regarding governance issues. Such developments underscore that investors must distinguish between companies with smooth execution and those facing institutional or regulatory roadblocks.
Beyond the assembly of battery cells, a significant risk remains in the lack of an upstream supply chain. India currently lacks commercial-scale production of essential materials such as cathodes, anodes, and electrolytes, as well as the processing of rare-earth minerals needed for EV motors. Even if companies successfully build the factories, the dependency on imported raw materials means the country remains exposed to global commodity price volatility and supply chain disruptions. Developing this part of the ecosystem is expected to be a much longer, multi-year process.
For investors, the key monitorables are the gap between announced capacity and actual commissioned output, the success of companies in localizing technology, and the stability of supply lines. As the industry moves past the initial phase of project announcements, the focus will increasingly shift toward how much of the value chain is actually produced within India versus how much is imported and merely assembled.