India’s lithium-ion (Li-ion) battery industry is poised for investments surpassing ₹75,000 crore by 2030, with more than 150 GWh of battery cell manufacturing capacity anticipated to become operational, according to a recent ICRA report.
India’s electric vehicle (EV) sector is experiencing rapid growth, driven by government initiatives, rising consumer awareness, and the launch of new models. With battery cells comprising 35-40% of an EV’s total cost, there is a growing emphasis on domestic manufacturing to reduce import dependence and strengthen the local supply chain.
China currently dominates the global Li-ion battery market, leading in both raw material processing and manufacturing. In 2024, battery prices fell by approximately 20% due to increased supply. In the coming years, global Li-ion battery production is projected to exceed demand, potentially impacting pricing trends in India.
India remains heavily reliant on battery cell imports, with local operations primarily limited to battery pack assembly. Li-ion battery cell demand is projected to grow from 11-13 GWh by FY2025 to 60-65 GWh by FY2030, driven by EVs and stationary applications.
However, challenges persist in establishing a strong domestic manufacturing base, including investment risks, technology reliability, and raw material sourcing. Battery recycling infrastructure is also underdeveloped. Despite these hurdles, policy support and rising private sector participation are gradually reducing import dependence and strengthening India’s EV battery ecosystem.
 sector is experiencing rapid growth, driven by government initiatives, rising consumer awareness, and the launch of new models. With battery cells comprising 35-40% of an EV's total cost, there is a growing emphasis on domestic manufacturing to reduce import dependence and strengthen the local supply chain.){kind=link}