India’s Next Leap: Shaping the Future of EV Batteries

NEW DELHI, Dec 12 —
India’s electric vehicle (EV) revolution is gaining significant momentum, with battery manufacturing emerging as a critical pillar in this transformation. As the country accelerates its clean mobility mission, the focus is now on building robust, innovative, and sustainable EV battery ecosystems. Here are the key factors shaping the future of EV battery manufacturing in India.

1. Government Policies Driving Local Manufacturing

India’s government has launched several strategic initiatives to boost domestic battery production, such as the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries.

“The PLI scheme aims to attract an investment of ₹45,000 crore and add 50 GWh of battery manufacturing capacity in India.”

These policies are not only encouraging global and domestic players to set up local factories but are also reducing dependence on imports and fostering homegrown innovation.

2. Surge in EV Demand and Market Growth

The Indian EV market is experiencing rapid expansion, with two-wheelers and three-wheelers leading the adoption curve.

“EV sales in India crossed 1 million units in FY2023, registering a 58% year-on-year growth.”

This surge in demand is creating a robust market for battery manufacturers, prompting both established companies and startups to invest in state-of-the-art gigafactories and R&D centres.

3. Focus on Indigenous Battery Technologies

To reduce reliance on imported lithium-ion cells, India is investing in indigenous battery technologies, including lithium iron phosphate (LFP) and sodium-ion batteries. Research institutions and startups are working towards developing cost-effective, safe, and climate-suited battery chemistries that can withstand India’s diverse weather conditions.

“Localised innovation is crucial for adapting battery performance to India’s unique operating environments.”

4. Raw Material Sourcing and Supply Chain Challenges

Securing a stable supply of critical materials such as lithium, cobalt, and nickel remains a challenge. India is exploring strategic partnerships with countries like Australia and Argentina for mineral sourcing, while also investing in battery recycling and urban mining.

“India currently imports more than 80% of its lithium-ion cells, highlighting the need for a resilient supply chain.”

5. Investment in Battery Recycling and Circular Economy

With EV adoption on the rise, end-of-life battery management is becoming a significant concern. Indian companies are increasingly investing in battery recycling infrastructure, aiming to recover valuable metals and reduce environmental impact.

“The Indian battery recycling market is projected to grow at a CAGR of 8% from 2023 to 2030.”

This circular approach is essential for sustainability and resource security in the long run.

6. Collaboration Between Industry, Academia, and Startups

The future of EV battery manufacturing in India will be shaped by collaborative innovation. Partnerships between automotive giants, technology startups, and leading academic institutions are fostering breakthroughs in battery management systems, safety protocols, and next-generation chemistries.

“Joint R&D initiatives are accelerating the commercialisation of advanced battery technologies in the country.”

7. Building a Skilled Workforce for the Battery Industry

A skilled workforce is vital for supporting the EV battery sector’s growth. India is ramping up training programmes and skill development initiatives to equip engineers, technicians, and researchers with expertise in battery manufacturing, testing, and maintenance.

“By 2030, the EV and battery sector is expected to generate over 5 million new jobs in India.”

India’s journey towards becoming a global hub for EV battery manufacturing is well underway. By harnessing policy support, indigenous innovation, sustainable practices, and collaborative efforts, the nation is poised to power its electric mobility ambitions and shape the future of green transportation.

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6. Strengthening R&D and Innovation Ecosystems

To secure a competitive edge in the global EV battery market, India must invest heavily in research and development (R&D) and foster an innovation-driven ecosystem. Currently, most domestic battery manufacturing relies on imported technology and components, limiting value addition within the country. Establishing dedicated R&D centers, in collaboration with leading academic institutions and private-sector innovators, can accelerate the development of indigenous battery chemistries, such as solid-state and sodium-ion batteries, that are better suited to India’s climate and resource availability. Government-backed initiatives—like the National Mission on Transformative Mobility and Battery Storage—must be further amplified to provide targeted funding, talent development, and intellectual property (IP) protections. By nurturing start-ups and facilitating technology transfer partnerships with global leaders, India can position itself as not just a manufacturing hub but also a center of battery innovation, ensuring long-term sustainability and resilience in its EV value chain.

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