Month in a Minute: Top Headlines from the Indian Renewable Sector in January 2026

KP Energy, Waaree, and Vena Energy Among Winners of SECI’s 1.2 GW Wind Auction

Punjab’s Draft Amendments Aim to Liberalize Rooftop Solar Framework

Loom Solar Launches BESS Scalable Up to 1 MWh for C&I Consumers

Ola Electric Begins Deliveries of Residential Battery Energy Storage Systems

IEX Electricity Volumes Rise 19.6% YoY to Record 13,050 MU in January

Atlanta Wins ₹2.88 Billion Transformer Orders from KPTCL, Datta Power

Daily News Wrap-Up: CSERC Clarifies DSM Charges for Open Access Consumers

Solar PPA Prices Rise 9% YoY in North America While Europe Falls 8%

Europe’s Power Market Reprices as Renewables Reshape Value: Pexapark

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					</table>The global lithium-ion (Li-ion) battery industry is at an inflection point characterized by rapid demand growth, falling prices, technological advancements, and intensifying global competition, according to a report published by <a href="https://www.mckinsey.com/" target="_blank" rel="noopener">McKinsey &amp; Company</a>.
The demand for Li-ion batteries crossed 1 TWh in 2024 and reached nearly 1.6 TWh in 2025. However, at the moment, the industry is grappling with significant overcapacity, which was around 900 GWh in 2025, especially in Asia.
Significant manufacturing overcapacity in Asia has pushed battery prices to historic lows, with prices falling to around $108/kWh in 2025.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-89269 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New.png" alt="" width="648" height="556" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New.png 648w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-300x257.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-624x535.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-600x515.png 600w" sizes="auto, (max-width: 648px) 100vw, 648px" /></a>Looking ahead, the global battery market is expected to grow to about 4.2 TWh by 2030 and 6.8 TWh by 2035, with Li-ion technologies accounting for more than 85% of demand.
Lithium Iron Phosphate (LFP) batteries are projected to gain market share due to their lower cost and safety, especially in the electric vehicle (EV) market and battery energy storage systems (BESS), while Nickel-Manganese-Cobalt (NMC) chemistries will remain important for long-range vehicles.
Rise of Lithium Iron Phosphate Batteries
The report forecasts that the LFP battery market share will reach 49% in the European Union in 2030 and 52% in 2035, with North America at 47% in 2030 and 49% in 2035.
According to the report, LFP batteries are expected to expand their market share due to their low cost, safety, and suitability for mass-market EVs and energy storage, while NMC chemistries will remain essential for long-range and premium vehicles. Incremental improvements—such as higher silicon content in anodes, better electrolytes, and safer separators.
Emerging technologies like sodium-ion and solid-state batteries show promise but are unlikely to displace conventional Li-ion batteries at scale. LFP batteries are expected to expand their market share due to their low cost, safety, and suitability for mass-market EVs and energy storage, while NMC chemistries will remain essential for long-range and premium vehicles.
Key to Survival of Li-ion Batteries
In 2025, Li-ion battery pack prices fell by 8%, continuing their downward trajectory after a 20% reduction in 2024. This drop indicates that competition and margins are tightening as the global battery supply significantly exceeds demand.
Going forward, costs are expected to remain relatively stable, possibly even rising slightly, as continued technological improvements are balanced by a gradual rebound in material prices.
The cost of four-hour Li-ion battery systems could <a href="https://www.mercomindia.com/li-ion-battery-prices-could-drop-to-108-kwh-in-2050-nrel" target="_blank" rel="noopener">decline</a> from $334/kWh in 2024 to as low as $108/kWh or remain as high as $307/kWh by 2050, according to the National Renewable Energy Laboratory.
Emerging Regions
Europe and the U.S. are emerging as the two regions that must significantly accelerate efforts to build competitive battery industries. Although Asian producers, especially China, currently dominate global battery supply chains, both Europe and North America are pushing to localize production.
In Europe, the Green Deal Industrial Plan and the Critical Raw Materials Act aim to ensure that by 2030 at least 40% of clean-technology needs are met domestically. To achieve global competitiveness, Europe will need to invest an estimated €300 billion (~$348.66 billion) by 2035 across the full battery value chain.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-89271 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-1.png" alt="" width="751" height="547" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-1.png 751w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-1-300x219.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-1-650x473.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-1-624x454.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/01/McKinsey-Report-New-1-600x437.png 600w" sizes="auto, (max-width: 751px) 100vw, 751px" /></a>
The U.S. is pursuing a parallel path, largely driven by the Inflation Reduction Act (IRA).  Although the federal EV purchase tax credit expired in 2025, the IRA’s Section 45X production credit of $35/kWh remains a powerful incentive, reducing battery cell manufacturing costs by nearly 50%.
Both regions face structural challenges due to imbalanced supply chains, particularly in midstream activities such as anode graphite and cathode precursor production, where the EU and US each account for less than 10% of global capacity.
BESS to the Fore
Beyond EVs, the report places strong emphasis on the rapid growth of BESS. As renewable energy generation increases, grid-scale storage is becoming essential for balancing supply and demand. The report notes that while battery chemistry is important for BESS, project economics depend more on system design, regulatory frameworks, and revenue mechanisms such as energy arbitrage and ancillary services.
McKinsey estimates that total installed BESS capacity will reach 200 GWh by the end of 2025 and will likely reach between 500 GWh and 700 GWh by 2030. In the U.S., 2025 is expected to be another record year for BESS capacity additions. Increasing data center power demand due to growth in AI and cloud computing is catalyzing BESS installations.
Europe has a BESS project pipeline of about 60 GWh by 2030, but it lags behind the storage volumes needed to balance renewable growth.
According to an Ember report, the capital cost for long-duration (4 hours or more) utility-scale BESS in markets outside China and the U.S. <a href="https://www.mercomindia.com/long-duration-utility-scale-bess-project-cost-drops-to-125-kwh-ember" target="_blank" rel="noopener">reached</a> roughly $125/kWh by October 2025. Such reductions translate into a levelized cost of storage of $65/MWh for large, contracted projects.
Technology Outlook
LFP batteries are expected to dominate short- to medium-duration storage, with sodium-ion batteries emerging as a lower-cost option for stationary applications.
By 2035, the BESS market is likely to be segmented by use-case and duration. LFP is expected to remain the prime option for up to 6-hour systems due to its cost, safety, and reliability. Also, sodium-ion batteries may offer a low-cost alternative to Li-ion batteries.

Global Battery Demand Soars, but Margins Tighten on Overcapacity

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					</table><a href="https://www.mercomindia.com/ntpc-renewable-energy-260-mw-solar-rajasthan" target="_blank" rel="noopener">NTPC Renewable Energy has invited bids for the engineering, procurement, and construction package for a 260 MW grid-connected solar power project in Bikaner, Rajasthan</a>. The scope of work includes design, engineering, manufacturing, supply, packing and forwarding, transportation, unloading storage, installation, testing, and commissioning of the projects, including the supply of solar modules. The selected developer will also be responsible for a three-year operation and maintenance of the project.
<a href="https://www.mercomindia.com/dvc-invites-bids-for-project-in-jharkhand" target="_blank" rel="noopener">Damodar Valley Corporation has invited bids for demarcating the boundary of land owned by it near Barhi, Hazaribagh district, Jharkhand</a>, and conducting a topographical survey and geotechnical investigation to establish a ground-mounted solar power project. With 6,687 MW from thermal and hydropower and 13.9 MW from solar, Damodar Valley Corporation plans to expand with 5,500 MW in renewables and 3,720 MW in supercritical and ultracritical thermal generation.
<a href="https://www.mercomindia.com/sunpower-shutter-residential-direct-sales" target="_blank" rel="noopener">U.S.-based solar firm SunPower Corp will wind down its SunPower Residential Installation locations, close SunPower Direct sales, and reduce its workforce by about 1,000 employees to rein in costs, according to an internal memo</a>. “I’m writing to share difficult news with you as we implement changes across our organization in the days and week to come,” wrote executive chairman of the board Tim Werner in the memo. Werner, who had previously served as CEO for nearly two decades, attributed the restricting to prolonged market recovery and improving financial controls.
<a href="https://www.mercomindia.com/global-solar-manufacturing-1-3-tw-2028" target="_blank" rel="noopener">Global solar manufacturing capacity under construction indicates an increase of 330 GW in 2023 to almost 800 GW – triple the 2021 level, according to the International Energy Agency</a>. This surplus in capacity is projected to more than double the forecast installations for 2023, creating a significant supply surplus.
<a href="https://www.mercomindia.com/india-third-market-utility-batteries-iea" target="_blank" rel="noopener">India could become the world’s third-largest market for utility-scale batteries, with capacity additions expected to rise to 9 GW by 2030</a>, fuelled by the cost competitiveness for solar photovoltaics coupled with battery storage, according to a recent report from the International Energy Agency. The rapidly declining cost of utility-scale batteries is a driving force behind the solar-plus-storage surge.
<a href="https://www.mercomindia.com/blupine-energy-secures-solar-project-in-gujarat" target="_blank" rel="noopener">Renewable energy company BluPine Energy has secured the debt financing of ₹4.18 billion (~$50.1 million) from HDFC Bank for its 120 MW solar power project</a> in Sadla, Gujarat. The company won the project in Gujarat Urja Vikas Nigam’s auction to supply solar power projects (Tranche XVIII) in January 2023. BluPine had won 50 MW in the initial auction for 500 MW solar projects at ₹2.52 (~$0.0302)/kWh and later received additional greenshoe capacity.
<a href="https://www.mercomindia.com/adaniconnex-green-financing-data-centers" target="_blank" rel="noopener">AdaniConneX, a data center solutions provider and a joint venture between Adani Enterprises and EdgeConneX, has established sustainability-linked financing</a> to raise $1.44 billion to fund its renewable-powered data centers and enable digital infrastructure growth in the country. The company said the upcoming data center facilities would leverage technologies and renewable energy solutions to minimize the ecological footprint while optimizing operational efficiency.
<a href="https://www.mercomindia.com/researchers-develop-fast-charging-sodium-battery" target="_blank" rel="noopener">Researchers have developed a high-energy, high-power hybrid sodium-ion battery that can be a viable alternative to lithium-ion batteries</a>. Led by Jeung Ku Kang, a team from the Korea Advanced Institute of Science and Technology and Lawrence Berkeley National Laboratory has found a way to enhance sodium-ion hybrid energy storage systems through an innovative hybrid energy storage system that integrates anode and cathode materials.

Daily News Wrap-up: NTPC’s 260 MW Solar EPC Tender

U.K.-based <a href="https://www.faradion.co.uk/about-us/background/" target="_blank" rel="noopener noreferrer">Faradion Ltd</a>, a manufacturer of sodium-ion batteries, has announced a partnership with <a href="https://infraprimelogistics.com/" target="_blank" rel="noopener noreferrer">Infraprime Logistics Technologies</a> (IPLTEC) to provide batteries for commercial vehicles in the Indian electric vehicle market.
IPLTech is a Gurgaon-based heavy goods vehicle fleet service provider. The company has been trying to halve the cost of infrastructure development through a fleet of electric trucks coupled with data-driven vehicle management. The team at IPLTech has compiled datasets of project sites, crusher operators, miners, transporters, and routes on which trucks can travel. Using real-time analytics, they match unassigned orders with available vehicles.
This increases vehicle utilization and minimizes the chances of a few suppliers courting multiple orders. Through field operations, IPLTech has mapped data on concentrated routes in construction-heavy clusters. Leveraging this data, digital solutions are developed to provide real-time visibility to fleet operators and clients. IPLTech claims that theirelectric truck is the first of its kind heavy-duty fully electric vehicle to be integrated and deployed in India.
Faradion’s press statement said that “India has demonstrated a growing appetite for moving towards commercial electric vehicles, driven by the government’s target of 30% electric vehicle adoption by 2030. It has given a significant push to infrastructure by allocating $1.4 trillion (~₹105.2 trillion) for infrastructure to be invested by 2025.”
The company also noted that India’s allocation for the development of infrastructure of electric vehicles is higher compared to the U.K., which allocated $35 billion (~₹2.6 trillion) and the United States with an allocation of $500 billion (₹37.6 trillion) for the same period.
Faradion noted that its sodium-ion battery technology provides similar performance to conventional chemistries while replacing expensive materials such as cobalt and lithium with the far more abundant sodium. Unlike lithium-ion batteries, these batteries have exceptional thermal stability and safety and can be safely transported and maintained at zero volts.
Lithium-ion batteries are some of the most commonly used types of batteries used in electronic devices and vehicles. They are usually smaller, lighter, and more compact compared to their alternatives. However, they are delicate and need protection from being over-charged and discharged too far, which usually requires additional circuitry, making them more expensive to make. They also require much lower maintenance compared to other types of batteries.
Recently, researchers at the Washington State University and Pacific Northwest National Laboratory <a href="https://mercomindia.com/rresearchers-announce-cheapersodium-ion-battery/" target="_blank" rel="noopener noreferrer">announced</a> that they had created a sodium-ion battery that can be made with widely and cheaply available materials. They said that these batteries work as well as commercially available lithium-ion batteries, adding that they offer similar performance and can retain more than 80% of their charge even after 1,000 charge cycles.
In May 2020, Mercom <a href="https://mercomindia.com/researchers-develop-new-way-turn-polymers/" target="_blank" rel="noopener noreferrer">reported</a> that researchers at Purdue University, in collaboration with researchers from the Indian Institute of Technology and Tufts University, had developed a technique to turn polymers into components for batteries using microwave radiation. The paper noted that sodium-ion battery cells have been seeing a rise in popularity because sodium is more widely and easily available than lithium.

UK’s Faradion Inks Deal with Indian Startup for the Use of Sodium-Ion Batteries

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