Expected ROI of lead acid battery storage project in India 2026

Are lead-acid batteries the future of energy storage in India?

As India continues to invest in its renewable energy infrastructure, the demand for energy storage solutions that utilize lead-acid batteries is likely to grow. The expansion of the renewable energy market is also encouraging the development of hybrid systems, which combine solar power with lead-acid batteries for backup.

Why are lead acid batteries growing in India?

With increasing growth in the e-commerce industry and digitalization, lead acid battery manufacturers are set to expand their market shares across the country. According to the Telecom Regulatory Authority of India, as of November 2022, total telephone subscriptions accounted for 1170.18 million. India has the world's second-largest telecom market.

How much will lead-acid battery manufacturers spend in 2026?

According to the analysis by CRISIL Ratings, which covered five lead-acid battery makers accounting for over 80% of the sector’s revenue, manufacturers are gearing up for a capital expenditure (capex) of Rs 11,000-12,000 crore from fiscal 2024 to 2026.

What is the demand for lead-acid batteries in India?

With the rapid expansion of both the passenger and commercial vehicle markets, the demand for lead-acid batteries has seen significant growth. India is one of the largest automotive markets globally, and its automotive production is increasing each year, driven by both domestic consumption and export potential.

How will alternative technologies affect the Indian lead-acid battery market?

On the other hand, alternate technologies, mainly lithium-ion, are expected to disrupt the market growth, primarily owing to their decreasing costs and technical advantages. New advancements in lead-acid battery technologies are expected to create immense opportunities for the Indian lead-acid battery market.

What are the raw materials required for lead-acid batteries?

The raw materials required for lead-acid batteries, such as lead and sulfuric acid, are widely available in the country. India is also a major importer and exporter of lead, and its domestic lead industry provides an abundant supply for battery manufacturing.