Gujarat Emerges as India’s EV Battery Hub

At the Bharat Startup Summit 2025, a special panel titled “Building the Powerhouse: Accelerating Battery Manufacturing in India” focused on strategies to boost battery manufacturing in India. The panel highlighted Gujarat’s role as a hub for major investments, the support provided by the state, easy access to supply chains, emerging startups in BMS and recycling, and the importance of linking the ecosystem with solar and rural energy storage.

The discussion also emphasized that Gujarat is not only becoming an attractive destination for investors, but its startups and technology ecosystem are playing a key role in taking battery manufacturing in India to the next level. The panel was moderated by Dr. Vikas Nimesh, Assistant Professor at IIT, who noted that electric vehicles (EVs) are contributing not only to cleaner air but also to reducing oil imports and generating new employment opportunities. He added that the heart of an EV is its battery, which determines cost, range, charging behavior, and lifetime.

Gujarat, especially Dholera and Sanand, is emerging as a major hub for this transition, supported by PLI and state subsidy projects. The state’s ports and strong startup ecosystem further strengthen its position.

Achieving the EV target of 30% by 2030 could reduce crude oil imports by 85% and save at least $60 billion annually. In addition, the EV ecosystem has the potential to create over 10 million jobs.

This panel explored how policy, logistics, and innovation can come together to build a competitive battery industry in India, powering not just EVs but also solar and rural storage solutions.

With this, the moderator introduced the speaker, Dr. Vinod Tiwari, who has contributed significantly to the EV and battery industry as Regional Mentor with NITI Aayog and previously as Engineering Director in the UAE. The discussion then moved forward to delve into battery manufacturing in India.

We know that over ₹40,000 crore has been invested in Dholera and Sanand in Gujarat. From a policy and preparedness perspective, how ready is Gujarat, and how is it driving the EV ecosystem forward?

Dr. Vinod Tiwari: The figure you mentioned is indeed impressive. But I would like to emphasize that Gujarat is not Gujarat just because of the state itself; Gujarat is Gujarat because of its people—they are its greatest strength. The success, progress, or greatness of any place is determined by its people. I would also say that Gujaratis have a growth mindset, not a fixed mindset. This is why Gujarat holds a distinct identity and position across the country.

Regarding investments, you mentioned Dholera—yes, there has been significant investment there. Recently, another major investment came in the EV sector, named eVitara. This investment was inaugurated by our Prime Minister, Shri Narendra Modi.

So,things are moving forward on a large scale. The state, with its capabilities, infrastructure, and growth-oriented mindset, is fully capable of making history and taking India’s EV ecosystem to new heights.

How can we collaborate with industry, R&D, and academic institutions? How are India’s and Gujarat’s policies helping innovative tech companies and advancing battery technology?

Dr. Vinod Tiwari: The government is very serious about connecting industry with academia and is working closely with higher education institutions so that they can understand the real challenges and problems of the industry and work on solutions. The government is continuously trying to bring both communities—industry and academia—together.

Speaking specifically about Gujarat, I have visited IIT Gandhinagar several times, where we are promoting industry–academic collaboration. In this effort, FICCI, several organizations, and state government agencies are also actively involved.

Regarding policy support, the government has introduced several initiatives. You may have heard of the PLI (Production Linked Incentive) Scheme, which has had a significant impact. Large industry groups, ready to make substantial investments, are motivated and incentivized by this scheme to invest in the sector and benefit from the PLI scheme.

In addition, there are other policies being implemented at the government level, but the PLI scheme is a major initiative that has significantly accelerated the growth of the battery and EV sector across India, and especially in Gujarat.

If you had to suggest one policy to accelerate battery cell and component manufacturing, what would it be?

Dr. Vinod Tiwari: In reality, what industries, people, and investors need the most is a clear policy framework. When things are transparent and the roadmap ahead is clear, people step forward and are ready to invest. But when policies are unclear and government support or motivation is lacking, many companies hesitate to invest.

Before Dholera, we had GIFT City, as you might know. GIFT City developed very rapidly and was a major initiative by the government. Now, the next focus is Dholera, where the government is actively working to attract large investors—solar companies, semiconductor companies, and EV companies.

If the policy framework, ease of operations, and initiatives like Atmanirbhar Bharat are clear and industry-friendly, it becomes much easier and faster for companies to make investment decisions.

Can you see battery systems becoming the backbone of decentralized energy in India, especially for solar integration and rural areas?

Dr. Vinod Tiwari: The government has a very clear vision. This is not just a government vision, nor a state vision—it is a vision for the entire country. I remember when I was in the UAE, people used to say that the most visionary country in the world was Saudi Arabia because they had a strong and long-term roadmap until 2030. But in recent years, when asked about the most visionary country in the world, the answer is India. Why? Because India has a plan extending to 2047 and beyond.

Currently, the government is not just setting goals or deadlines—they are creating the entire framework and roadmap. And for this reason, you wouldn’t believe it, but NITI Aayog has a very large and highly qualified team working day and night. Their aim is to develop policies and frameworks that make life easier for tech industries and provide them with a supportive and conducive environment.

Electrification of transport is progressing rapidly in urban areas, but there are still challenges in rural regions. How can rural transport be electrified, and what steps can be taken to make EV adoption affordable and sustainable in these areas?

Dr. Vinod Tiwari: The model plans for urban and rural areas are completely different. Your previous question about policy-level changes is also related to this.

The biggest challenge is grid stability. Grid stability is a major concern, and this is why the battery and energy storage industry plays such a crucial role. It not only helps stabilize the grid but also maintains a proper balance between supply and demand.

If we look at urban areas—Tier-1 and Tier-2 cities—the challenges are not as significant anymore. This is due to the many solar schemes being implemented. Today, it’s not just industrial solar but also rooftop solar that is growing rapidly. Many homes and industries have their independent power systems, which reduces their dependence on the grid. This is the urban scenario.

However, in rural areas, the challenges are quite different. The mindset of people regarding investment is not like that in urban areas. Rural residents often think, “Will I get the subsidy or not?” and they are hesitant to adopt new technologies quickly. They tend to wait until they see these changes happening in nearby areas. This hesitation and the need for grid modifications represent the biggest challenge in rural electrification.

Regarding local transport and other challenges, I would also like to point out that Gujarat has greatly benefited from Mundra Port and Kandla Port. These two major ports facilitate easy import and export, which has accelerated growth and scalability in the state. This is one of Gujarat’s greatest strengths.

In the future, when a large number of EV batteries reach the end of their life, what will happen to them? Can we turn battery waste into an opportunity, and what should India’s vision for battery recycling look like?

Dr. Vinod Tiwari: This challenge is not limited to batteries; it is equally significant for solar panels. People around the world are discussing this because, in a few years, billions of tons of solar panels will also be discarded. The same question applies to batteries.

I remember when I was in Dubai, we had a major contract with Etisalat. There were only two service providers there—Etisalat and Doom. We were supplying a large number of batteries to them for years. One day, their CEO asked, “What will you do with these batteries after two years? Where will you dispose of them? If there is no solution, we will stop working with all vendors.” In other words, they warned us about the huge number of batteries and the potential disposal problem.

A battery is a commodity that cannot be simply thrown away. It must be recycled in an organized and systematic manner. If not, it will indeed become massive waste. But if recycled properly, it can help us save significant carbon emissions.

India is the only country that has started actively working on both batteries and solar panels in this regard. The good news is that battery technology is also evolving. Earlier, over-cell batteries were used for many years, then VRLA batteries came in the late ’90s, and now lithium batteries are prevalent. In the near future, sodium-ion batteries will emerge, which are even more powerful.

Moreover, the recycling process for lithium batteries is much easier than VRLA batteries. Things are improving in this direction. India has already started working on this challenge, and I am confident that India will be fully prepared to tackle this huge challenge well before the next 10 years. This will be a significant achievement for us.

Even after recycling or repurposing EV batteries, what is the biggest challenge to scaling up battery manufacturing in India?

Dr. Vinod Tiwari: The biggest challenge—or rather, the biggest gap—is research and development (R&D). Investment in R&D by the industry and manufacturing companies in India is almost negligible, whereas in other parts of the world, significant money, time, and energy are invested to develop new technologies. India is still largely limited to adopting existing technologies, collaborations, or joint ventures.

As you correctly mentioned, batteries can be recycled, repurposed, or reused. This represents a huge opportunity for new startups. In the coming years, this will become a major business. Only authorized companies will be allowed to recycle and repurpose these batteries.

However, batteries cannot be fully reused; repurposing is only possible for a few hundred cycles. A new battery lasts for 1800–2000 cycles, whereas a repurposed battery can provide an additional about 100 cycles. Proper recycling is essential, and this responsibility should be given only to authorized companies. This creates a very significant opportunity for startups in India.

When will India fully benefit from its lithium resources, and when can we reduce dependence on China?

Dr. Vinod Tiwari: India is a vast country, not only in terms of minerals and resources but also in terms of magnesium, cobalt, and other minerals. Recently, exploration and extraction of oil have also begun.

There are certain unique challenges that have so far slowed down mineral extraction. However, the government currently has a very ambitious vision. The aim is to make India self-reliant, so that it does not depend on any other country for critical resources.

You may be aware that India’s economic growth is not easily accepted worldwide. As a result, some countries have changed their rules and policies, such as the H1B visa regulations in the U.S. Some nations perceive India’s rapid rise as a challenge, and therefore, India must become independent and self-reliant. Accordingly, work on mineral exploration and resource development is underway and is included in government planning.

After electrification, how can we reduce dependence on China, and are alternative batteries like sodium-ion a viable solution besides lithium-ion?

Dr. Vinod Tiwari: This requires a complete change in mindset, which must come at the individual level. It is not only the responsibility of the people in Delhi or the government; every citizen has a role to play. If we all understand that making India self-reliant is our duty, then undoubtedly our thinking, investment, R&D, and way of working will change.

Someone once told me—and I found this entirely wrong—that if 10 people go from India to the U.S., they learn there and work for America. Meanwhile, a Chinese person said that if 10 people go abroad from China, they learn and come back to work for China. That is the biggest difference.

We still lack the mindset of working for our own country. Every individual must contribute to the nation. When this happens at all levels, R&D, investment, and industrial growth will naturally follow.

Conclusion

This discussion makes it clear that batteries are set to become the backbone not only of electric vehicles but of the entire energy landscape. States like Gujarat—where significant investments are happening in Dholera and Sanand—are playing a crucial role in positioning India as a global battery manufacturing hub.

We observed that clear policies, industry–academia collaboration, investment in R&D, and battery recycling and repurposing will be the key pillars for the future. If these areas are developed in the right direction, India will not only meet its own energy needs but also provide solutions to the world.

The challenges in the EV and battery sectors are, in fact, opportunities for new startups and innovators. If all stakeholders—government, industry, academia, and entrepreneurs—work together, India will not only achieve its EV adoption targets by 2030 but also take a strong step toward energy independence by 2047.