Rethinking battery strategy in India: the case for sodium-ion technology Premium

India’s dependence on lithium-ion batteries exposes structural constraints linked to critical minerals, import dependence, and supply security; sodium-ion batteries emerge as a safer alternative with lower material risk, compatible with existing infrastructure, and the potential to strengthen energy security

Batteries have become deeply embedded in modern life. From laptops, mobile phones, wearable devices such as smartwatches and wireless earphones, to power tools, electric vehicles (EVs), and large-scale battery energy storage systems, batteries now underpin both personal convenience and critical infrastructure. A newer trend is also emerging, with batteries being integrated directly into household appliances, ranging from induction cooktops to refrigerators, alongside the rise of energy storage systems. These developments collectively point to a future saturated with batteries, making energy storage a foundational pillar of economic growth, energy security, and the clean energy transition.

Among the various battery chemistries that have existed or are still in use, such as nickel-cadmium, lead-acid, and others, lithium-ion batteries have emerged as the dominant global technology. This dominance is largely driven by their high energy density, low self-discharge rates, and long cycle life. Sustained global focus on lithium-ion technology over the past two decades has resulted in steady improvements in performance, manufacturing efficiency, and large-scale capacity build-out. By 2024, global lithium-ion manufacturing capacity had reached nearly 2.5 times annual demand, further accelerating cost reductions through economies of scale. As a result, costs have fallen dramatically, from nearly $1,100 per kWh in the early 2010s to about $108 per kWh in 2025.

However, the success of lithium-ion batteries masks several structural challenges. These batteries are highly resource-intensive and depend on critical minerals such as lithium, cobalt, nickel, and graphite. The availability of these materials is unevenly distributed across a handful of countries, while refining and processing capacities are even more geographically concentrated. This creates vulnerabilities related to supply security, price volatility, and geopolitical risk. As global demand for batteries accelerates, these constraints are likely to intensify, reinforcing the need for alternative technologies that can support a more resilient and equitable energy transition.

India provides a compelling case for rethinking battery technology choices. The Government of India has made sustained efforts to build domestic battery manufacturing capacity, most notably through the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells launched in 2021. Under this scheme, around 40 GWh of manufacturing capacity has been allocated so far. While this represents meaningful progress, deployment remains at an early stage, with just over 1 GWh commissioned to date and additional capacities expected to come online gradually.

More critically, India’s upstream ecosystem, from raw material availability and mineral processing to cathode and anode active material production and separator manufacturing, remains underdeveloped. Domestic reserves of lithium are limited and yet to be proven commercially viable, while processing infrastructure is still nascent. Consequently, import dependence for lithium-ion batteries is likely to persist for a considerable period. This reality underscores the importance of parallel investments in alternative battery technologies that can reduce material risk and strengthen long-term energy security. Sodium-ion batteries (SiBs) represent one such technology, offering significant promise for India in the medium to long term.

From a fundamental perspective, sodium-ion batteries exhibit lower specific energy (Wh/kg) than lithium-ion batteries, largely because sodium has a higher atomic mass than lithium, which intuitively leads to more mass per unit of stored energy. However, this performance gap is often overstated. In practice, it can be significantly narrowed if the mass of other cell components in sodium-ion batteries is reduced, thereby compensating for the higher mass of sodium itself. Moreover, among commercially available sodium-ion chemistries, layered transition-metal oxide cathodes already deliver higher specific energy than polyanionic compounds and Prussian blue analogues, underscoring the growing competitiveness of sodium-ion technology.