Waaree Energies Unveils ₹10,000 Cr Plan for 20 GW Battery Plant

Introduction to Waaree's Energy Storage Ambitions

Waaree Energies, a prominent player in the solar energy sector, has announced a significant expansion into energy storage with plans for a 20 GW battery cell and pack manufacturing facility. The project, spearheaded by its subsidiary Waaree Energy Storage Solutions Pvt Ltd (WESSPL), is part of a strategic shift to become a comprehensive energy transition company. This move is backed by an initial funding round of ₹1,003 crore, which is the first part of a larger ₹10,000 crore capital expenditure plan dedicated to the battery manufacturing venture. The initiative aims to address the growing demand for energy storage solutions required to support India's renewable energy goals and reduce dependence on imports.

A Strategic Pivot to Integrated Solutions

The decision to enter battery manufacturing is a calculated step in Waaree's vertical and horizontal integration strategy. Company executives have highlighted that as solar power generation is limited to 6-8 hours a day, battery storage is essential for providing reliable, round-the-clock power. By adding batteries to its portfolio, which already includes solar modules and inverters, Waaree aims to offer end-to-end solutions for grid stability, renewable energy integration, and large-scale decarbonization. This positions the company to cater to utility-scale projects, electric mobility, and distributed energy applications, strengthening its market leadership.

Phased Rollout and Project Timeline

The 20 GW battery facility will be developed in two distinct phases to align with market demand and operational readiness. The first phase is already in an advanced stage of construction and is expected to commence production in the financial year 2027.

According to the company, it is already receiving orders and has a strong pipeline from both domestic and international markets, indicating early confidence in its new venture.

Financial Framework and Investment Strategy

The project is supported by a robust financial plan. WESSPL recently secured ₹1,003 crore from a consortium of strategic investors, including family offices, high-net-worth individuals, and institutional backers. This initial funding is part of a total planned capex of ₹10,000 crore specifically for the battery plant. This investment is a component of the broader Waaree Group's ₹25,000 crore capital expenditure plan, which will be deployed over the next 24 months to fund backward integration into ingots and wafers, expand solar cell capacity, and scale up inverter production.

Expanding Global and Vertical Operations

Waaree's ambitions are not limited to India. The company is also enhancing its global manufacturing footprint and vertical integration capabilities. Its polysilicon facility in Oman, with an installed capacity of 100 KTPA (equivalent to nearly 40 GW of annual production), is nearing completion, with trial production expected this quarter. This facility will supply traceable, non-Chinese polysilicon to meet specific customer demands. Furthermore, Waaree is expanding its presence in the United States to insulate its business from tariff impacts.

Market Impact and Investor Confidence

Investors have responded positively to Waaree's strategic expansion plans. On Thursday, January 22, shares of Waaree Energies surged 9.67% on the NSE, closing at ₹2,652.80. This rally reflects market confidence in the company's ability to execute its ambitious plans and capitalize on the growing demand for renewable energy and storage solutions. The move into battery manufacturing is seen as a critical step that aligns with national priorities, including the 'Make in India' initiative and the push for energy security.

Analysis of the Strategic Move

Waaree's entry into battery manufacturing is a timely and strategic decision. The Indian energy storage market is poised for significant growth, driven by government policies like the Production Linked Incentive (PLI) scheme for advanced cell chemistry batteries. By establishing a large-scale domestic manufacturing facility, Waaree can mitigate supply chain risks associated with imported cells, which constitute a major portion of a battery system's cost. This vertical integration will allow the company to offer more competitive and reliable bundled solutions, combining solar generation with energy storage, a crucial requirement for the next phase of India's green energy transition.

Conclusion

Waaree Energies' plan to build a 20 GW battery manufacturing facility marks a pivotal moment for the company and for India's clean energy landscape. Backed by substantial funding and a clear, phased execution strategy, the project is set to make Waaree a fully integrated energy transition player. This initiative will not only enhance the company's competitive edge but also contribute significantly to India's goals of achieving energy self-reliance and a sustainable, decarbonized future.