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Shaping India’s EV Battery Manufacturing Future

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Hedhvick Hirav

Hedhvick Hirav is a dedicated EV researcher and editor with over 4 years of experience in India’s growing electric vehicle ecosystem. Their contributions have been recognized in leading sustainability publications and automotive journals.

• Last Updated: Dec 12, 2025, 01:30:00 PM IST

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Shaping India’s EV Battery Manufacturing Future

NEW DELHI, Dec 12 —
India is rapidly emerging as a key player in the global electric vehicle (EV) revolution, with EV battery manufacturing at the heart of this transformation. As the country looks to reduce its carbon footprint and strengthen energy security, building a robust domestic battery manufacturing sector has become a national priority. Here are the main factors shaping the future of EV battery manufacturing in India.

1. Government Initiatives to Boost Domestic Production

The Indian government has announced several measures to encourage local EV battery manufacturing. The Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries, with a budget of ₹18,100 crore, is a major step in this direction.

“The PLI scheme is expected to add 50 GWh of battery manufacturing capacity in India by 2030.”

These incentives are attracting both domestic and international players to invest in the sector, aiming to reduce dependency on imports and make EVs more affordable for Indian consumers.

2. Growing Domestic Demand for Electric Vehicles

India’s push towards clean mobility is reflected in the rapid growth of the domestic EV market. According to the Ministry of Heavy Industries, over 15 lakh electric vehicles are currently registered in India, and this number is expected to rise sharply in the coming years.

“The Indian EV market is projected to grow at a CAGR of over 49% between 2022 and 2030.”

This surging demand is driving investments in battery manufacturing infrastructure and technology, ensuring that supply keeps pace with the needs of automakers and consumers.

3. Challenges in Raw Material Sourcing

While India has strong ambitions, securing critical raw materials like lithium, cobalt, and nickel remains a challenge. Most of these materials are currently imported, exposing the sector to global supply chain disruptions and price volatility.

“India imports more than 70% of its lithium-ion batteries, mostly from China and South Korea.”

Efforts are underway to secure mineral assets overseas and to explore domestic mining opportunities, as well as to develop battery recycling technologies to recover valuable materials.

4. Technological Innovations and R&D Investments

Indian companies and research institutions are investing heavily in advanced battery technologies and localisation of manufacturing processes. Innovations in lithium-ion, solid-state, and alternative chemistries are being explored to enhance battery performance and safety.

“India’s expenditure on R&D in battery technologies has grown by 25% in the last three years.”

Collaboration between academia, startups, and established players is expected to accelerate the development of cost-effective, high-performance batteries tailored for Indian conditions.

5. Building a Sustainable Supply Chain

Sustainability is a key concern as India scales up EV battery production. Focus is being placed on eco-friendly manufacturing processes, efficient recycling, and the circular economy.

“By 2030, India aims to recycle 90% of used EV batteries to recover valuable materials and reduce environmental impact.”

This approach will not only lower costs but also address environmental concerns associated with battery disposal and resource extraction.

6. Attracting Foreign Investment and Global Partnerships

India’s large market potential and policy support are drawing foreign direct investment and fostering international collaborations. Leading global firms are partnering with Indian companies to set up joint ventures and technology transfer agreements.

“FDI inflows into India’s automobile and auto component sector, including EV batteries, surpassed $30 billion between 2020 and 2023.”

Such partnerships are critical for bringing in advanced manufacturing know-how and integrating India into global EV supply chains.

7. Addressing Skill Gaps and Workforce Development

To achieve its ambitious targets, India must develop a skilled workforce for EV battery manufacturing. Industry and government initiatives are underway to train engineers, technicians, and factory workers in battery technology, safety protocols, and quality control.

“More than 1 lakh professionals are expected to be trained in EV and battery technologies by 2025 under various government and private programmes.”

This focus on human capital is essential to ensure consistent product quality and competitiveness in global markets.


India stands at a pivotal moment in its journey towards EV battery self-reliance. With strong policy support, rising demand, and a focus on innovation and sustainability, the country is well-positioned to become a global hub for EV battery manufacturing, powering both its own green mobility ambitions and those of the world.

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