₹75,000 Crore Power Play: India's Lithium-ion Manufacturing Push

The supply of lithium-ion batteries in India is set to surpass demand, as manufacturers commit investments of over ₹75,000 crore to scale production capacity to 150 GWh by 2030—more than twice the projected demand.

This surge in supply has contributed to a 20% decline in lithium-ion battery pack prices in 2024. The penetration of electric vehicles (EVs) across all automotive segments is expected to rise significantly over the next five years, driven by government support, increased consumer awareness, and a growing number of product launches.

As the battery constitutes 35-40% of an EV’s total cost, battery cell manufacturing has become a key focus area. The demand for Li-ion battery cells for EVs in India is projected to reach 11-13 GWh by the end of FY2025 and expand to 60-65 GWh by FY2030. Beyond EVs, stationary applications are also expected to drive demand.

Several companies have announced significant investments in India’s Li-ion battery cell segment. With investments exceeding ₹75,000 crore, over 150 GWh of production capacity is expected to be operational by 2030. Some of this localization is facilitated through technology transfers and strategic alliances with international battery cell manufacturers.

Despite these developments, India remains reliant on imports for Li-ion battery cells, with domestic capabilities currently limited to battery pack assembly. China continues to dominate the global supply chain, particularly in raw material processing and manufacturing.

News by Rahul Yelligetti.