India Lithium-ion (Li-ion) Batteries Market - Analysis, Size, Share, Growth, and Forecast to 2029

The India lithium-ion battery market has experienced remarkable growth in recent years. Some of the primary drivers are favourable government policies and initiatives, increasing demand from electric vehicles (EVs), and consumer electronics sector. The Indian government has implemented favourable policies and incentives to promote EV adoption, creating a conducive environment for the lithium-ion battery market. Additionally, the push for renewable energy integration and grid stabilization has further boosted the demand for battery storage solutions, including lithium-ion batteries. 

However, the market also faces certain restraints. One significant challenge is the high lithium-ion battery prices, making EVs and energy storage systems comparatively expensive. Supply chain constraints, particularly for raw materials like lithium and cobalt, can also pose a challenge. Furthermore, the industry also faces issues related to li ion battery safety, recycling, and environmental impact.

Despite these challenges, the India Lithium ion Battery Market presents immense growth potential, driven by the government's support, increasing consumer awareness, and advancements in battery technology.

Drivers

Supportive Government Policies and Regulations

India has committed to reducing its greenhouse gas (GHG) emissions intensity of its gross domestic product (GDP) by 45% below 2005 levels by the year 2030. 

Following the announcement of its emission reduction target, the government undertook new initiatives and policies to cut emissions majorly from energy and transportation sector to reach its target. As part of which the government is actively promoting the adoption of electric vehicles and renewable energy sources.

By 2030, India aims for EV sales penetration of 30% in private cars, 70% in commercial vehicles, 40% in buses, and 80% in two and three-wheelers. Add to this the Government of India also targets non-fossil energy capacity additions of 500 gigawatts (GW) by 2030. Both of which assert the demand for lithium-ion batteries.

To strengthen lithium battery value chain and promote local manufacturing of lithium batteries to meet the growing demand, government has introduced policies to encourage local manufacturing of lithium-ion cells. For instance, Indian government doubled the import duty on lithium-ion cells and removed the customs duty on the import of capital goods and machinery used in the manufacturing of lithium-ion cells.

The government is also providing incentives for the production of lithium batteries. For example, The ACC (advanced chemistry cells) PLI scheme is a part of the government's efforts to make India a global hub for manufacturing of advanced batteries.

The PLI scheme will provide financial assistance to companies that set up manufacturing plants for ACCs in India. The incentive will be based on the production volume of ACCs, with a maximum incentive of INR 40,000 per kilowatt-hour (kWh). The scheme is expected to attract investments of up to INR 18,100 crore (USD 2.3 billion) and create over 10,000 jobs in the ACC manufacturing sector.

The Indian government's support for the lithium ion battery manufacturing industry is a major step towards making India a global leader in this sector. Following the recent discoveries of lithium reserves in India, the industry is expected to grow rapidly in the coming years, and India is well-positioned to capture a significant market share.

Segment Analysis

The automotive sector is one of the largest and fastest-growing segments of the lithium-ion battery market in India. The growth of this segment is being driven by the increasing adoption of electric vehicles (EVs) in the country. The country has set for itself a target of 30% electric vehicle sales by 2030, due to which the government actively promoting the adoption of electric vehicles which in turn is expected to drive demand for lithium-ion batteries.

The India's electric vehicle (EV) market has shown impressive growth in vehicle sales past year (2023). The 1.53 million EVs sold in 2023 represent a significant 50% year-over-year increase over the one million units sold in 2022. The two- and three-wheeler markets were responsible for the majority of the growth. As they are the main drivers of EV sales because they are cheaper than passenger electric cars or large commercial vehicles.

The Indian government's push for clean and sustainable mobility has played a crucial role in the growth of the automotive sector in the lithium-ion battery market. Initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which offers financial incentives and subsidies, have incentivized the production and adoption of EVs in the country. These policies aim to reduce vehicular emissions, decrease dependence on fossil fuels, and promote a greener transportation ecosystem.

The automotive sector's shift towards electric mobility has led to a rising demand for lithium-ion batteries as the primary energy storage solution. Lithium-ion batteries offer several advantages for EVs, including higher energy density, longer lifespan, and faster charging capabilities compared to traditional lead-acid batteries. These batteries have become the preferred choice for automakers, enabling them to develop EV models with longer ranges and improved performance.

The growing number of EV manufacturers in the Indian EV market and the expanding charging infrastructure across the country further contribute to the demand for EV batteries in the automotive sector. Both domestic and international automotive companies are investing in EV production facilities in India, driving the need for local lithium-ion battery manufacturing capabilities.

Furthermore, the automotive sector's adoption of lithium-ion batteries extends beyond battery electric vehicle (BEVs) to hybrid electric vehicles, two-wheelers, and three-wheelers. Lithium-ion batteries provide enhanced efficiency and power delivery, making them suitable for a range of automotive applications.

Current Scenario

The current scenario of lithium-ion batteries manufacturing in India is in a nascent stage. India currently imports most of its lithium-ion cells, and manufactures significant share of battery packs locally. However, the government has taken some steps to encourage domestic cell manufacturing, such as the Production Linked Incentive (PLI) scheme for advanced chemistry cells (ACCs). This scheme aims to attract investments in ACC manufacturing and create a domestic supply chain for lithium-ion batteries.

The PLI scheme has been successful in attracting investments from several major companies, including Reliance Industries, Ola Electric, and Mahindra & Mahindra. These companies are planning to set up ACC manufacturing plants in India, which will help to boost domestic manufacturing and reduce reliance on imports.

Recent Developments

• In January 2024, Altmin Private Ltd., a prominent Indian manufacturer specializing in cathode active material for lithium-ion batteries, unveiled its strategic initiative to invest IJS$ 100 million over the next five years.
• The Indian state of Karnataka and US battery firm IBC signed a MoU to setup a INR 8000 crore recyclable lithium-ion battery unit, in August 2023.
• Tata Group, one of India's leading conglomerates, has entered a memorandum of understanding (MoU) with the state government of Gujarat to establish a lithium-ion cell manufacturing facility. This proposed factory, located in Gujarat, aims to have a capacity of 20 GWh (gigawatt-hours). In the initial phase, Tata Group plans to invest an estimated INR 13,000 crore (USD 1.57 billion) for the construction and development of the facility. 
• In June 2023, the government approved the import of pet coke as a feedstock for the production of graphite anode material for lithium-ion batteries. The import of pet coke for the purpose of fuel is absolutely prohibited.
• Amara Raja Batteries Ltd. Lays foundation stone for its USD 1.14 billion lithium ion battery manufacturing gigafactory in Telangana, in May 2023.
• OLA Electric commences the construction of its battery cell gigafactory in Tamil Nadu. It is claimed as one of the most advanced and largest cell manufacturing facilities in the world, with a capacity of 10 gigatonnes per year.
• In Nov 2022, Attero recycling private limited announced its plans to invest USD 72.4 million in setting up ‘world’s most advanced’ Li-ion battery recycling plant in Telangana. The new facility will cover 50 acres and will expand Attero's Li-ion spent batteries recycling capacity to 19,500 MT by the end of 2023, up from its current capacity of 4,500 MT. 
• Log9 Materials, a Bengaluru-based EV battery technology startup, has opened its first lithium-ion cell manufacturing facility on its site in Jakkur. The new EV cell production line will cater to LTO (lithium titanate) and LFP (lithium iron phosphate) cell manufacturing and will have an initial capacity of 50 MWh. Log9 Materials claims to be the country's first commercial lithium-ion cell production facility.

India Lithium ion Battery Market

The new report from Blackridge Research on India Lithium-ion (Li-ion) Batteries Market comprehensively analyses the Lithium-ion (Li-ion) Batteries Market and provides deep insight into the current and future state of the industry in the country.

The study examines the drivers, restraints, and trends influencing India Lithium ion Batteries Market demand and growth.

The report also addresses present and future market opportunities, market trends, developments, and the impact of Covid-19 on the India Lithium ion Batteries Market, important commercial developments, upcoming manufacturing battery manufacturing projects, trends, segments poised for fastest growth, and competitive landscape.

Further, the report will also provide India lithium ion batteries market size, demand forecast, and growth rates.

What we cover in the report?

India Lithium-ion (Li-ion) Batteries Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow and the factors that constrain the market growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.

India Lithium-ion (Li-ion) Batteries Market Analysis

This report discusses the overview of the market, latest updates, important commercial developments and structural trends, and government policies and regulations in the country.

This section provides an assessment of COVID-19 impact on India lithium-ion (li-ion) batteries market demand in the country.

India Lithium-ion (Li-ion) Batteries Market Size and Demand Forecast

The report provides India lithium-ion (li-ion) batteries market size and demand forecast until 2029, including year-on-year (YoY) growth rates and CAGR.

Lithium-ion (Li-ion) Batteries Market Industry Analysis

The report examines the critical elements of lithium-ion (li-ion) batteries industry supply chain, its structure, and participants

Using Porter's five forces framework, the report covers the assessment of the lithium-ion (li-ion) batteries industry's state of competition and profitability.

Lithium-ion (Li-ion) Batteries Market Segmentation & Forecast

The report dissects the India lithium-ion (li-ion) batteries Market into various segments based on applications. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for a "bespoke" market segmentation to better align the research report with your requirements.

Key Company Profiles

This report presents detailed profiles of Key companies in the Indian lithium-ion (li-ion) batteries industry. For instance, BYD Company Ltd, LG Energy Solutions, CATL, Samsung SDI, Toshiba Corporation, etc. In general, each company profile includes - overview of the company, relevant products and services, a financial analysis, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the country's market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

Executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.

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