Inside India newsletter: India's green push aims to boost energy security but exposes China dependency
India's ambition to create a self-reliant energy ecosystem by expanding its renewable energy footprint is facing a China problem.
TL;DR
- India's renewable energy expansion faces a "China problem" due to heavy reliance on Chinese battery imports.
- Nearly 80% of batteries for renewable power storage in India are imported from China.
- New draft regulations require battery storage for government solar and wind projects, increasing dependency on China.
- India's domestic battery manufacturing capacity is less than 1% of its projected demand for 2026.
- China holds a critical advantage in battery manufacturing and has used resource access as a geopolitical tool.
- Developing local battery manufacturing capacity in India could take over a decade.
- China controls over 80% of global manufacturing capacity for key battery supply-chain components.