India’s landed costs for lithium iron phosphate (LFP) battery cells and containers were 13-23% higher than China’s after-tax prices in July, as freight, duties and other import-related expenses added to costs amid a rapid expansion in grid-scale energy storage.
Landed LFP cell prices in India stood at $62-67 per kWh (about Rs 5,944-6,423 per kWh) in July, compared with about $54.5 per kWh (around Rs 5,209 per kWh) in China. This meant an additional cost of $7-12 per kWh (approximately Rs 671-1,150 per kWh) for Indian buyers.
According to a report by JMK Research & Analytics and IEEFA, a similar price differential was seen for assembled AC containers. The report attributed the gap to freight, duties and other import-related costs, and said local cell and pack manufacturing would help developers “avoid this import surcharge and reduce their reliance on Chinese supply.”
The price differential emerged even as battery-cell prices softened in China. Average prices of 314Ah LFP cells, widely used in utility-scale battery energy storage systems (BESS), fell 1.4% month-on-month in July to CNY0.370 per Wh, or about $54.5 per kWh.
The decline was aided by a 10.7% month-on-month fall in lithium carbonate prices, expectations of additional supply following the restart of Chinese battery maker CATL’s Jianxiawo mine, ample availability of 314Ah cells and stronger bargaining power among buyers.
The decline was aided by a 10.7% month-on-month fall in lithium-carbonate prices, expectations of additional supply following the restart of CATL’s
Prices of integrated two-hour liquid-cooled AC containers, however, remained unchanged at $85.7 per kWh (about Rs 8,216 per kWh). The roughly $30-per-kWh difference between an LFP cell and an assembled container reflects the additional equipment and services required for grid-scale deployment, including power conversion systems, thermal management, fire safety, energy-management systems, commissioning and warranties.
The import premium assumes significance as India’s storage deployment accelerates. The country commissioned around 8,236 MWh of BESS capacity during April-July FY27, alongside 250 MW of pumped hydro storage. July alone saw about 710 MWh of ESS capacity commissioned.
Domestic manufacturing also expanded, with about 6.35 GWh of downstream capacity becoming operational in July. Waaree ESS accounted for 5.15 GWh through its container plant, while Midwest Energy added a 1.2-GWh integration facility.
However, the report said commercial cell manufacturing in India “remains limited”, leaving the country’s BESS industry substantially dependent on imported cells.
The Ministry of Heavy Industries has meanwhile tendered the remaining 10 GWh under the 50-GWh advanced chemistry cell (ACC) battery production-linked incentive scheme exclusively for grid-scale storage. The tender requires domestic value addition of 25% within two years and 40% within five years.