Energy storage is crucial for supporting India's sustained thrust to renewables and Electric Mobility. Globally, about 96% of storage capacity is still through conventional pumped hydro storage. However, electrochemical storage (batteries) is one of the most rapidly growing segments. Lithium-ion batteries comprise the majority of new battery capacity being installed globally. In India, potential applications of energy storage in various segments up to 2021-22 have been estimated to be in the range of 50 - 75 GWh. Grid-connected energy storage systems and electric vehicles constitute a major share of the likely demand. Further, the estimated cumulative renewable power capacity addition of 500 GW by the year 2030 would require about 1200 GWh of energy storage capacity.

With an objective to strive towards leadership in the energy storage sector, the Government of India has plans to undertake energy storage development and deployment. The focus would be on demand creation, indigenous manufacturing, innovation and necessary policy support for the proliferation of energy storage in the country. So long as critical materials such as lithium are not available in the country, the focus would be on developing alternative materials as well as recycling and reuse of materials.

India seeks collaboration and cooperation from various research and development institutions, leading technology providers in the development of new age storage batteries with new materials that are currently available and with enhanced efficiency and shelf life; and manufacturing storage batteries with entire value chain.