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Highlights :
- Adani’s CATL HQ visit comes at a time when the Government of India has passed the Finance Bill that ends the import duty for goods and machinery to make lithium-ion batteries for EVs and phones
India’s battery energy storage market is on the cusp of explosive growth, and any high-profile meet-up at such a point suggests big moves may be afoot. Gautam Adani, the chairman of the Adani Group and one of India’s most ambitious infrastructure tycoons, has recently toured CATL headquarters, the global manufacturing plant, and reportedly held some “high-level talks.”
The implications of this meeting may be more than just a courtesy call. Contemporary Amperex Technology Co. Ltd. (CATL) is the world’s largest manufacturer of lithium-ion batteries and a visit by one of the world’s richest men to its factory is a clear signal toward something big looming.
Notably, Adani’s visit to CATL HQ comes after the GoI has passed the Finance Bill recently, which includes a clause ending the import duty for goods and machinery to make lithium-ion batteries for EVs and phones.
Could Asia’s richest infrastructure magnate be courting the global battery behemoth to fast-track India’s energy storage ambitions? If yes, this will have a significant impact on India’s budding storage market, considering CATL’s weight as an industry giant.
Why is Probable Partnership with CATL so Significant?
CATL’s dominance in the battery world is unquestionable. As per a BBC report, the company accounts for more than a third of all EV batteries made globally, supplying automotive giants like Tesla, BMW, and Volkswagen.
The battery maker has pushed the envelope on cell chemistries – from high-nickel NMC cells for longer range, to safer cobalt-free LFP cells that now power a growing share of electric vehicles and stationary storage systems. Notably, CATL has also developed a first-generation sodium-ion battery, unveiled in 2021, with an energy density of around 160 Wh/kg.
What Does it Mean for India?
A probable tie-up of India’s richest man with the world’s biggest battery maker is bound to materialise into something significant, not only for the domestic energy storage industry but also for allied sectors, especially renewable energy.
For one, this may be a game changer for stationary storage in the country that lacks domestic lithium resources. Sodium-ion tech forgoes scarce lithium in favor of abundant sodium. In fact, Reliance’s Faradion acquisition was motivated by the same promise. In CATL, Adani would find not just a battery supplier, but an innovation partner at the cutting edge of storage R&D.
The most impactful scenario would be CATL aiding Adani in setting up a lithium-ion cell gigafactory on Indian soil. With CATL’s expertise and help in manufacturing processes, Adani could leapfrog the learning curve and establish a high-volume cell production facility. Such a factory could focus on LFP chemistry, well-suited for India’s hot climate and stationary storage.
This also bypasses the Indian government’s upset over direct Chinese investment in the country. Besides, the administration might look favorably on technology transfer that boosts local manufacturing.
A joint venture or licensing deal could thus be a win-win. CATL would gain entry into the booming Indian market and a local ally to navigate regulations, and Adani would have world-class tech without reinventing the wheel.
Any such collaboration would also make CATL a more preferred supplier of battery packs and containerized BESS solutions for Adani business in case of a shortage of manufacturing in India. Notably, CATL has developed comprehensive energy storage products, such as the TENER 6.25 MWh container aimed at utility-scale deployments.
These plug-and-play battery blocks come with integrated controls and thermal management. For Adani’s solar and wind farms that require storage, aligning with CATL may ensure a steady supply of top-tier batteries.
In an industry where global supply chains are tight, having a direct line to CATL might guarantee Adani priority access to batteries even as demand soars. This could extend to supplying batteries for Adani’s future EV fleets or battery swapping networks.
Synergies Across Mobility, Grid, and Industry
If Gautam Adani does leap into the battery arena with CATL by his side, the ripple effects would span multiple sectors of the Indian economy. One such industry is the electric vehicle sector.
Currently, India’s EV market is still at an early stage, with electric cars accounting for about 2.5 percent of all cars sold in 2024. S&P Global Mobility estimates that India’s 2024 passenger EV production has increased by 22.5 percent year-over-year, to about 125,500 units. The domestic battery market bloom will be essential for a more robust growth of overall electric mobility.
For India’s EV adoption to accelerate, affordable and reliable cells are key, and Adani’s entry into battery manufacturing could secure a domestic source of EV batteries for Indian OEMs and for his own ventures.
Adani operates one of India’s largest city gas networks and is installing EV charging stations, often pairing with its gas stations. By integrating battery storage at charging sites, it could complete the overall one in all charging and refuelling infrastructure by Adani.
Standalone ESS Tenders in India; Jan-March 2025: IEEFA
Grid-scale energy storage and renewable integration are arguably the biggest prize for India out of this seemingly certain collaboration. The energy storage sector is making strides in the country. In just the first quarter of 2025, for instance, standalone Energy Storage Systems (ESS) tenders reached 6.1 gigawatts (GW), which accounted for 64 percent of all utility-scale energy storage tenders.
Adani’s renewables portfolio – 50 GW by 2030 target – could itself absorb tens of GWh of batteries to smooth out solar’s midday peaks and wind’s variability. Adani Group has already signed a landmark 24×7 renewable energy supply deal with firms like Google, and having in-house battery capabilities would make fulfilling such contracts easier and more profitable.
A collaboration with CATL would also allow Adani to provide turnkey battery backup solutions to India’s fast-growing data centers, hospitals, factories, and telecom towers. Furthermore, with CATL’s high-density cells and Adani’s infrastructure integration expertise, the group could tap into the industrial energy storage market. This segment is poised to grow as companies pursue carbon neutrality and reliable power. Scaling up battery manufacturing would also drive down costs per kWh for these applications, potentially igniting wider adoption of battery backups across Indian industry.
Strategic Outlook: A Power Play in the Making
While a possible Adani-CATL partnership may take time to materialise, Gautam Adani’s personal visit to CATL’s facility, following his tour of Jinko Solar’s factory, shows his efforts to build a complete green energy value chain. In his own words, Adani aims to deliver “highly resilient and efficient clean energy across India”.
For CATL, India is a vast and virtually untapped market, committed to at least 500 GW of non-fossil power by 2030. For that, millions of vehicles need to go electric, and the consequent need for batteries could rival China’s in scale. Partnering with a heavyweight like Adani could give CATL an inside track, ensuring that when India’s storage market booms, CATL’s technology is at its core. This is similar to how CATL has expanded to Europe by setting up factories in Germany and Hungary to serve automakers there.
If Adani can rope in CATL to jump-start his battery venture, and similar other players make the move, it can spur faster development of India’s storage supply chain. For investors, this competition could open opportunities in ancillary industries – from mineral refining (lithium, nickel, graphite) to battery recycling – and could accelerate the timeline for India becoming a battery export hub, not just self-sufficient.
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