Union Commerce and Industry Minister Piyush Goyal issued a clarion call for India’s energy storage sector to achieve self-reliance by investing in research and development (R&D), developing innovative technologies, and diversifying supply chains. Speaking at the India Energy Storage Week 2025, Goyal stressed the importance of reducing dependence on a handful of countries, warning of the risks exposed by recent Chinese export restrictions on critical inputs like rare earth magnets and fertilisers.

This article delves into why this call is significant, the challenges India faces in the energy storage sector, and what steps are needed to build a resilient, competitive, and sustainable domestic industry capable of meeting the demands of India’s clean energy transition.

The Context: Energy Storage as Strategic Infrastructure

Energy storage systems are vital for India’s energy transition goals:

• They balance supply and demand by storing excess renewable energy.

• Enable grid stability in the face of variable solar and wind generation.

• Support electric mobility through advanced battery technologies.

• Reduce dependence on fossil fuels and improve energy security.

India has committed to achieving 500 GW of non-fossil fuel energy capacity by 2030 and Net Zero by 2070. These goals cannot be met without robust, affordable, and scalable energy storage solutions.

Goyal’s Message at India Energy Storage Week 2025

During his virtual address on July 10, Piyush Goyal underscored several key themes:

• Reduce Import Dependence:
  India’s current energy storage sector relies heavily on imported cells, battery-grade chemicals, and rare earth magnets, mostly from a handful of countries.

• Invest in R&D and Innovation:
  He urged industry stakeholders to develop indigenous technologies tailored to India’s climate, usage patterns, and economic needs.

• Build Resilient Supply Chains:
  Recent Chinese export controls on rare earth magnets and fertilisers exposed vulnerabilities. Goyal stressed the need to hedge risks by diversifying sources and developing alternatives.

This call reflects the government’s broader Atmanirbhar Bharat vision—building self-reliance in critical sectors through domestic capability and reduced import dependence.

India’s Dependence on Energy Storage Imports

Current scenario:

• India imports most of its lithium-ion cells from China, South Korea, and Japan.

• Critical materials such as lithium, cobalt, and nickel are sourced from geopolitically sensitive regions.

• Rare earth magnets, essential for electric motors and energy storage systems, are predominantly controlled by China.

This import dependence creates multiple risks:

• Price volatility driven by global supply-demand imbalances.

• Geopolitical leverage by supplier nations.

• Supply chain disruptions due to export restrictions or conflicts.

Recent Challenges Highlighted by Goyal

Goyal’s warning is rooted in recent real-world disruptions:

• China imposed export curbs on rare earth magnets in 2024-25, impacting Indian manufacturers.

• Fertiliser export controls by China triggered domestic supply and price challenges.

• The COVID-19 pandemic exposed supply chain fragility globally.

These incidents highlight why resilience is not just a buzzword but a strategic imperative for India’s energy sector.

Strategic Importance of Energy Storage

Energy storage is not simply an industrial segment—it is critical infrastructure:

• For renewable energy integration: Solar and wind are intermittent. Storage smooths variability.

• For electric mobility: EV batteries are central to transport decarbonisation.

• For energy security: Reduces reliance on imported fossil fuels.

• For grid stability: Enhances peak load management, frequency control, and black-start capability.

A failure to secure domestic manufacturing capacity risks slowing India’s energy transition and increasing strategic vulnerability.

India’s Energy Storage Ambitions

India has ambitious goals for energy storage deployment:

• 160 GWh of cumulative battery storage capacity by 2030 (NITI Aayog).

• Large-scale battery manufacturing plants under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries.

• Green Hydrogen initiatives that will require dedicated storage solutions.

• Decentralised storage for rural and off-grid electrification.

Meeting these targets needs domestic production capacity, technological capability, and supply chain resilience.

Government Initiatives to Promote Domestic Manufacturing

To address these challenges, India has already launched several initiatives:

• PLI for Advanced Chemistry Cells: Incentivising domestic production of 50 GWh of battery capacity.

• FAME India Scheme: Supporting electric vehicle uptake with battery cost reductions.

• National Mission on Transformative Mobility and Battery Storage: Policy roadmap for domestic industry.

• Draft Battery Waste Management Rules: Promoting recycling to reduce primary raw material dependence.

• Critical Minerals Strategy: Identifying, securing, and diversifying supplies of essential inputs like lithium and cobalt.

These efforts aim to reduce import dependence while building competitive capacity.

Role of R&D and Innovation

Goyal specifically highlighted R&D and innovation as key pillars.

• Develop alternative chemistries: Sodium-ion, solid-state, flow batteries.

• Optimise manufacturing processes: Reduce costs, improve quality.

• Localise components: Cathodes, anodes, electrolytes, separators.

• Adapt technologies for Indian conditions: High temperatures, rural grids, cost sensitivity.

• Recycle and reuse: Circular economy approach to reduce raw material pressures.

Investing in research collaborations, academic partnerships, and start-up ecosystems will be critical.

Building Resilient Supply Chains

Goyal’s speech also emphasised hedging risks through supply chain diversification:

• Alternative import destinations: Australia, South America, Africa for lithium and cobalt.

• Strategic stockpiling: Buffer reserves of critical minerals.

• Joint Ventures: With global technology leaders.

• Trade Agreements: Secure stable, reliable partners.

India must avoid overconcentration of critical inputs from any single country.

Industry Response and Challenges

While the government’s push is clear, industry stakeholders face real hurdles:

• High capital costs of setting up cell manufacturing.

• Access to affordable finance.

• Technology gaps vis-à-vis global leaders.

• Raw material availability.

• Market competition from cheap imports.

• Policy clarity and regulatory stability.

To succeed, India will need coordinated action between government, industry, academia, and investors.

Lessons from China’s Dominance

China’s leadership in energy storage stems from:

• Long-term policy support and industrial planning.

• Massive investments in R&D.

• State-led coordination across mining, processing, manufacturing.

• Economies of scale driving down costs.

• Strategic trade controls to retain leverage.

India will need to adapt these lessons to its own democratic and market-based context.

A Call to Action

Piyush Goyal’s message is both a warning and an opportunity.

• Without action, India risks permanent dependence on foreign suppliers for energy storage.

• With strategic investments, India can lead the Global South in clean energy technologies.

• Self-reliance will improve energy security, economic resilience, and climate commitments.

The time to act is now.

Conclusion

India’s journey towards self-reliance in energy storage will be neither quick nor easy. It requires:

• Ambitious R&D investments.

• Policy incentives and regulatory clarity.

• Global partnerships and technology transfers.

• Domestic manufacturing capacity building.

• Supply chain risk management.

As Piyush Goyal rightly observed, India cannot afford to remain vulnerable to supply disruptions or geopolitical blackmail. By focusing on innovation, diversification, and resilience, India can secure its place as a leader in the clean energy transition—benefitting its economy, environment, and strategic autonomy.

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