ICRA estimates that India’s lithium-ion (Li-ion) battery industry will attract investments of approximately ₹75,000 crore by 2030. The country is expected to establish more than 150 GWh of battery cell production capacity to meet rising demand.
EV Growth and Government Policies Driving Demand
The increasing adoption of electric vehicles (EVs), coupled with government policies and growing consumer awareness, has significantly boosted India’s EV market. With battery cells contributing 35-40% of an EV’s overall cost, there is a strong push for local production. However, India still depends heavily on imports, as domestic companies primarily focus on battery pack assembly rather than cell manufacturing.
Projected Demand Surge for Li-Ion Batteries
ICRA projects that India’s demand for Li-ion battery cells will reach 11-13 GWh by FY2025 and further increase to 60-65 GWh in the following five years. Beyond EVs, stationary applications will also contribute to this growing demand.
Challenges in the Battery Ecosystem
Despite the optimistic outlook, challenges remain in securing raw materials, ensuring technology reliability, and achieving favourable investment returns. Additionally, India’s battery recycling infrastructure still lacks development.
Efforts to Reduce Import Dependence
To address these challenges, India is actively working to reduce its reliance on imports by fostering a robust domestic EV battery ecosystem. As reported by manufacturingtodayindia.com, supportive policies and increasing private sector participation are driving this transition, paving the way for a more self-sufficient and sustainable battery industry.
