By Nidhi Dua
India’s rapidly expanding electric mobility and renewable energy sectors are creating demand for batteries beyond conventional ownership models. Energy-storage-as-a-service (ESaaS), battery-as-a-service (BaaS) and battery swapping are emerging as alternatives to battery ownership and plug-in charging. In addition, emerging technologies such as sodium-ion, vanadium redox flow and silicon-carbon anode are expected to reshape the traditional battery landscape, which has focused primarily on lead-acid and lithium-ion (Li-ion) batteries. Against this backdrop, this article explores emerging battery business models and technologies across electric vehicles (EVs) and energy storage. It examines the market landscape, key players, adoption trends, opportunities and challenges shaping these segments in India.
BaaS and ESaaS: Emerging alternative models
BaaS and ESaaS are emerging as alternative models to the conventional approach of purchasing and owning battery and energy storage assets. Under these models, customers can access batteries or energy storage systems without making a large upfront capital investment, with the service provider typically owning, deploying and managing the assets while charging customers for their use and associated services.
In the EV segment, BaaS is gaining relevance by separating battery ownership from vehicle ownership. According to Pulkit Khurana, Co-Founder and Chief Executive Officer, Battery Smart, this can reduce the upfront cost of EV adoption while enabling access to charged batteries through swapping in a matter of minutes. He further highlights that this model is particularly relevant for high-utilisation segments such as last-mile delivery, e-commerce, shared mobility and commercial three-wheelers.
A similar service-based approach is emerging for stationary energy storage. Under ESaaS, businesses can use battery energy storage systems without bearing the upfront cost of purchasing the asset. The service provider owns, installs and operates the system, while customers pay for the storage capacity and services delivered. The offering can also include asset management, software, maintenance and performance monitoring, allowing customers to use storage while limiting their capex and operational responsibilities. The model is beginning to gain traction in India. In May 2026, Voltide Solutions and JEM Energy launched a BESS-as-a-service model aimed at replacing diesel generators in the commercial and hospitality spaces. The first deployment is operational at Uru Brewpark in Bengaluru. The project uses a made-in-India BESS and follows an operating expenditure-led model. Enectron, a Karnataka-based energy storage company, is also offering an ESaaS model for commercial, industrial and utility-scale applications.
Battery swapping as an alternative to EV charging
Battery swapping is gaining traction as an alternative to conventional EV charging, especially for two- and three-wheeler commercial vehicles. According to a Council on Energy, Environment and Water (CEEW) analysis, battery swapping can lower the total cost of ownership compared with fixed charging and internal combustion engine (ICE) vehicles across different vehicle segments. For two-wheelers, battery swapping has a cost of Rs 1.46 per km, compared with 1.14 times this cost for fixed charging and 1.64 times for ICE vehicles. For three-wheelers, the corresponding ratios are 1.21 per km for battery swapping, 1.25 times for fixed charging and 1.86 times for ICE vehicles. Hence, for users, the battery-swapping model is more economical, as it can reduce the upfront cost of an EV and allow them to pay on a per-swap basis. It can also reduce concerns around battery technology becoming obsolete, as users do not necessarily have to own the battery. Additionally, battery swapping also has a lower land requirement than conventional charging. According to NITI Aayog, swapping stations can require as little as 3x2x2 metres of space, and stations with four to six batteries can even be set up at small retail outlets. Further, CEEW estimates that the area required for battery swapping is one-fifth of that needed for fixed charging. This advantage allows swapping stations to serve more vehicles compared to conventional charging stations.
If the technology is upscaled through an adequate policy and regulatory impetus at the national level, under an ambitious scenario, India has the potential to become a global leader, reaching a market size of $32.6 billion, according to CEEW. Furthermore, through battery swapping, India can accelerate battery recycling, reduce environmental impacts, create jobs and support economic activity.
Alternative battery technologies gain momentum
Lead-acid batteries dominate India’s battery market. Their low upfront cost, proven reliability, established manufacturing base and extensive distribution, servicing and recycling network make them well suited to India’s price-sensitive market. However, they have relatively low energy density, are heavy, offer shorter life cycles and require more space compared to Li-ion batteries. However, environmental concerns related to lead toxicity and battery disposal remain key challenges.
The market success of Li-ion batteries has established them as another dominant battery technology; however, their position is increasingly being challenged by a range of factors shaping the global geo-economic landscape. The Li-ion battery supply chain remains highly concentrated, leaving India dependent on a limited number of suppliers. At the same time, environmental concerns associated with lithium and cobalt mining, along with strategies aimed at securing control over critical resources, are encouraging the development of alternative battery technologies.
One of the emerging alternatives is sodium-ion batteries, which offer potential advantages in terms of cost and resource availability. According to a report by the Ministry of New and Renewable Energy, titled “Assessment of the Global Landscape for Sodium-Ion Batteries and Their Potential in India”, by 2030, sodium-ion batteries are expected to achieve costs 15-20 per cent lower, making them increasingly competitive across various applications. In India, NITI Aayog estimates that sodium-ion batteries could account for around 4 per cent of the overall battery technology mix by 2030, equivalent to approximately 24 GWh of storage capacity across applications. Their favourable technical characteristics and suitability for grid-scale applications, coupled with rising battery demand in India and globally, are expected to support rapid deployment through 2030. However, scaling this technology will require the development of an adequate supply chain for input materials and sufficient domestic manufacturing capacity.
Vanadium redox flow batteries (VRFBs) are also gaining traction. Unlike conventional batteries, flow batteries store energy in electrolyte solutions, making them suitable for applications requiring long-duration storage and repeated cycling. India’s first MWh-scale VRFB system was inaugurated at NTPC NETRA in November 2025. Furthermore, in the same month, NTPC Renewable Energy Limited issued a tender for the development of a 100 MWh VRFB BESS at the Khavda Solar Park.
Silicon-carbon anode batteries represent another emerging pathway. Silicon has the potential to significantly enhance the energy density of batteries, while combining it with carbon helps address challenges associated with silicon-based anodes. The technology holds significant potential in India, particularly as domestic cell manufacturing capacity expands and demand grows for higher-energy-density batteries across electric mobility and energy storage applications. However, silicon-carbon technology remains at an early stage of development and commercialisation in India, with further advancements in material development, cell performance, manufacturing scale-up and cost competitiveness required before widespread adoption.
While all these technologies are at different stages of development and commercialisation, their potential to address specific requirements across mobility and stationary energy storage applications is expected to support their adoption in the coming years.
Focus on domestic manufacturing
The expansion of the domestic battery manufacturing ecosystem will be critical. While India continues to depend on imports for several critical battery materials and components, domestic manufacturing capacity is scaling up. According to the India Energy Storage Alliance, in the first half of 2026, cell manufacturing capacity stood at around 4 GWh, while pack manufacturing capacity was estimated at 32-37 GWh. Pack manufacturing capacity is expected to reach 100-130 GWh by 2030, while container manufacturing capacity could reach 180-220 GWh. Strengthening this manufacturing base, along with capabilities across battery materials, components and systems, will be essential to meet the growing requirements of EVs, BESS and emerging battery technologies.
Conclusion
The growth of alternative models and technologies will depend on the broader development of India’s battery ecosystem. As the market evolves, the focus is likely to shift from simply expanding battery and EV infrastructure towards improving utilisation, efficiency, affordability and reliability across the ecosystem. Battery costs, performance, availability, life cycle and utilisation will remain important determinants of the commercial viability of these models and technologies.
