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India's lithium-ion (Li-ion) battery industry is poised for significant growth, with investments exceeding ₹75,000 crore expected by 2030, according to a recent report by ICRA. The country is set to witness the establishment of over 150 GWh of battery cell manufacturing capacity, driven by increasing demand for electric vehicles (EVs) and government initiatives promoting domestic production.
The Indian EV sector is expanding rapidly as consumer awareness rises and new models enter the market. Battery cells, which account for 35-40% of an EV’s total cost, remain a key focus area for local manufacturing to reduce dependence on imports and strengthen the domestic supply chain.
Currently, China dominates the global Li-ion battery market, controlling both raw material processing and large-scale production. However, battery prices saw a sharp decline of around 20% in 2024 due to increased global supply. With global Li-ion battery production expected to surpass demand in the coming years, pricing trends in India could also be impacted.
India still relies heavily on battery cell imports, with local operations mainly limited to assembling battery packs. The demand for Li-ion battery cells in India is projected to reach 11-13 GWh by FY2025 and is expected to grow significantly to 60-65 GWh by FY2030. Apart from EVs, the demand for these batteries is also increasing in stationary energy storage applications.
Despite the promising outlook, challenges remain in establishing a robust battery cell manufacturing ecosystem. Concerns over investment returns, technological reliability, and raw material availability pose risks. Additionally, India’s battery recycling infrastructure is still in its early stages. However, with strong policy support and growing private sector investments, the country is making steady progress toward reducing import dependence and developing a sustainable EV battery industry.
