India’s EV Battery Sector: Charting a Sustainable Future

NEW DELHI, Dec 12 —
India’s electric vehicle (EV) battery sector is poised for rapid growth, driven by government initiatives, rising demand, and increasing investments. With the transition towards sustainable mobility, India is not only aiming to reduce its carbon footprint but also establish itself as a global manufacturing hub for EV batteries. Here, we explore the key factors shaping the future of this critical sector.

1. Government Policies Accelerating Growth

The Indian government has launched several ambitious schemes to boost EV adoption and local battery manufacturing.
The Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme provides significant incentives for both manufacturers and consumers. Additionally, the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage aims to attract investments worth ₹18,100 crore.

“The FAME-II scheme targets the deployment of over 7,000 electric buses and 5 lakh electric three-wheelers.”

These policies are designed to create a robust ecosystem for EV battery manufacturing, promoting both domestic production and technological innovation.

2. Surge in Domestic and Foreign Investments

India has witnessed a notable increase in both domestic and foreign investments in the EV battery sector. Major Indian conglomerates like Reliance Industries, Tata Group, and Adani Group are making substantial investments in battery production facilities.

According to Invest India, the country is expected to attract investments of up to $6 billion in the battery manufacturing sector by 2025.

International players are also entering the market, bringing advanced technology and expertise, which is essential for scaling up production and meeting global standards.

3. Building a Competitive Supply Chain

A resilient and competitive supply chain is crucial for the success of the EV battery sector. India is focusing on localising the supply of key raw materials such as lithium, cobalt, and nickel, which are currently imported, mainly from Australia, Chile, and China.

“India imports over 80% of its lithium-ion cell requirements, highlighting the need for domestic capacity.”

Efforts are underway to explore mines in Karnataka and Rajasthan, and government-to-government collaborations are being pursued to ensure a steady supply of critical minerals.

4. Technological Innovation and R&D Initiatives

Innovation is at the heart of India’s EV battery ambitions. The country is investing in advanced chemistry batteries, including solid-state and sodium-ion technologies, to improve performance, safety, and affordability.

“The Indian EV battery market is projected to grow at a CAGR of over 35% between 2021 and 2026.”

Leading research institutions and startups are collaborating with global technology firms to develop next-generation battery solutions tailored for Indian conditions, such as high ambient temperatures and diverse usage patterns.

5. Addressing Sustainability and Recycling Challenges

Sustainability is a key consideration in the EV battery sector. The rapid growth in battery usage raises concerns about waste management and environmental impact. India is formulating policies and frameworks to promote battery recycling and the development of a circular economy.

“By 2030, India could generate over 800,000 tonnes of lithium-ion battery waste annually.”

Startups and established firms are investing in recycling infrastructure, and pilot projects are being implemented to recover precious metals from used batteries, reducing dependency on imports and minimizing environmental damage.

6. Strengthening the Skilled Workforce

The expansion of the EV battery sector requires a skilled workforce adept in both manufacturing and advanced research. Industry-academia partnerships are being fostered to develop specialised training programmes and courses in battery technology and electric mobility.

NITI Aayog estimates that the EV sector could create over 10 million jobs in India by 2030.

Upskilling and reskilling initiatives are underway to ensure that India has the human capital needed to drive innovation and maintain global competitiveness.

7. Export Opportunities and Global Competitiveness

India’s goal is not only to fulfil domestic demand but also to become a significant exporter of EV batteries. With competitive production costs, a large talent pool, and supportive policies, India is well-positioned to supply batteries to emerging EV markets in Asia, Africa, and beyond.

“India aims to capture at least 10% of the global EV battery market by 2030.”

Establishing global supply chains and adhering to international quality standards will be crucial for realizing this vision.

, India’s EV battery manufacturing sector is on a dynamic growth trajectory, underpinned by strong policy support, technological innovation, and significant investments. By addressing supply chain, sustainability, and skill development challenges, India is set to emerge as a leader in the global transition to electric mobility, charting a sustainable and prosperous future.

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• Intergovernmental Panel on Climate Change (IPCC): IPCC opens registration of experts to review the first draft of the Methodology Report on Inventories for Short-lived Climate Forcers

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