India Lithium-ion Battery Market: Industry Analysis and Forecast (2024-2030) by Type, Material, Capacity, Application and Region

India Lithium-ion Battery Market size was valued at USD 2.54 Bn in 2023 and is expected to reach USD 6.92 Bn by 2030, at a CAGR of 15.4 %.
India Lithium-ion Battery Market Overview
A lithium-ion battery or Li-ion battery is a type of rechargeable battery composed of cells in which lithium ions move from the negative electrode through an electrolyte to the positive electrode during discharge and back when charging. Li-ion cells use an intercalated lithium compound as the material at the positive electrode and typically graphite at the negative electrode. Li-ion batteries have a high energy density, no memory effect (other than LFP cells), and low self-discharge. Cells are manufactured to prioritize either energy or power density. They are a safety hazard since they contain flammable electrolytes and if damaged or incorrectly charged lead to explosions and fires. A lithium-ion battery is an advanced rechargeable and reusable source of power consisting of lithium ions in its electrochemistry.

The battery comprises organic electrolytes, graphite anodes and lithium cobalt oxide, and lithium manganese oxide cathodes. It has high energy density and is widely utilized in portable consumer electronics, such as smartphones, laptops, tablets, digital cameras, music players, and power tools. The India Lithium-Ion Battery Market is rapidly growing, driven by increasing demand for electric vehicles, renewable energy storage, and consumer electronics. The advancements in battery technology and supportive government policies are key factors driving this expansion and fostering sustainable energy solutions.

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India Lithium-ion Battery Market Trends:
The increase in electric vehicle (EV) adoption

EV registrations in India have experienced an extraordinary increase, rising from 125,000 units to 1,025,000 units in 2023, marking a ninefold growth. The Economic Survey projects a robust growth trajectory for the sector, estimating a 49% increase in EV adoption between 2022 and 2030, with annual sales anticipated to reach 10 million units by 2030. This burgeoning India Lithium-ion Battery Market is fueled by several critical factors. Consumer preferences are shifting towards EVs due to growing environmental awareness. Traditional fossil fuel vehicles are significant contributors to air pollution and greenhouse gas emissions, making EVs, which produce zero tailpipe emissions, a cleaner alternative. EV adoption is higher among women, driven by the convenience, safety, and advanced features of these vehicles.

The Indian government's proactive policies catalyze this shift, with targets such as a 45% reduction in emissions intensity by 2030 and ambitious goals for electrifying the transportation sector. Recent budget announcements reflect a commitment to expanding the EV ecosystem, supporting both manufacturing and charging infrastructure. Furthermore, while the initial cost of EVs is higher, the long-term savings in operating and maintenance costs, combined with rising fossil fuel prices, make EVs a more economical choice over time.
The surge in electric vehicle (EV) sales across India has significantly driven the demand for lithium-ion batteries, as increasing EV adoption necessitates advanced energy storage solutions. This growth is bolstering the India lithium-ion battery market, attracting investments and technological advancements to meet the rising energy needs.



Technological advancements play a crucial role in this growth. The decreasing cost of lithium-ion batteries down from around $400 per kWh in 2021 to approximately $200 per kWh makes EVs more affordable and practical. Innovations in battery technology, such as enhanced energy density and faster charging solutions, are driving increased adoption and drive India Lithium-ion Battery Market demand. Home charging options also provide added convenience. Additionally, EVs address urban mobility challenges by reducing traffic congestion and noise pollution in densely populated cities. India’s potential to have EVs account for more than 40% of its automotive market and generate over $100 billion in revenue by 2030 underscores the market's promising future.

To realize this potential, the industry focuses on several areas:

The developing customer-centric products, expanding distribution beyond metro areas, prioritizing B2B and fleet segments, leveraging software for differentiation and profitability, and scaling charging infrastructure. The current EV penetration, primarily in premium segments and metro cities, indicates significant room for growth in the mass India Lithium-ion Battery Market growth and Tier 2 cities. Strategic efforts to optimize product offerings, distribution models, and infrastructure are essential for achieving the projected market expansion and supporting India’s transition to a more sustainable and electrified transportation landscape.
India Lithium-ion Battery Market Dynamics:

Revolutionizing India's Energy Future Drive Behind Massive Investments in Lithium-Ion Battery Manufacturing

India is undergoing a remarkable transformation in its energy landscape, driven by massive investments in lithium-ion battery manufacturing, which are expected to revolutionize the country's energy future. The increase in investments is boosted by a confluence of factors, including the increasing demand for electric vehicles (EVs), renewable energy storage solutions, and consumer electronics. This also drives Lithium-ion Battery Market growth. As India aims to reduce its dependence on fossil fuels and transition towards a sustainable energy economy, lithium-ion batteries have emerged as a critical component. The Indian government's policies and initiatives, such as the National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, have been instrumental in fostering the growth of the EV market.

These initiatives provide financial incentives and infrastructure support to encourage the adoption of electric vehicles, thereby increasing the demand for efficient and cost-effective energy storage solutions. The push for renewable energy sources including solar and wind power, has created a substantial need for advanced battery technologies to store and manage intermittent energy generation. Lithium-ion batteries, with their high energy density, long life cycle, and declining costs, are ideally suited for these applications. The private sector has recognized the lucrative potential of this burgeoning market and has responded with significant investments. Leading domestic and international companies are establishing large-scale manufacturing facilities, leveraging India's competitive advantages in labor costs, technological expertise, and favorable regulatory environment. Collaborations and joint ventures with global battery manufacturers are bringing advanced technologies and best practices to the India Lithium-ion Battery Market, enhancing the quality and efficiency of locally produced batteries.

India's Bold Shift to Lithium-Ion Batteries is a Driver of Energy Independence and EV Expansion

India's bold shift to lithium-ion batteries is propelling energy independence and expanding the electric vehicle (EV) market. This transition reduces reliance on fossil fuels, supports sustainable energy solutions, and aligns with the country's goals. This environmental conservation and economic growth through advanced energy storage technologies, boost India Lithium-ion Battery Market demand. The rush into Li-Ion battery production is part of a reset that India is attempting in its energy industry. India wants to reduce its oil dependency (it imports more than 80% of its crude currently) and move to a future that uses solar energy to power itself. It has the ambition to increase solar-generated power to 100 gigawatts (GW) by 2022 from the current 14.65 GW. By 2030, the central government wants only electric cars to be sold in India.

As early as the turn of this year, London consultancy IHS Market predicts that India overtake Germany to become the world's fourth-largest car market by volume, and the third-largest by 2020. In its National Electric Mobility Mission Plan, the government targets six to seven million EVs on Indian roads by 2020. That target is likely to be missed but to power EVs, the country needs Li-Ion batteries and battery packs. Currently, the battery pack costs nearly half an EV's cost in India. Any effort to reduce that cost via local production, for instance, adds to the shift towards a lower petroleum footprint in the economy.

Decrease in the Price of Lithium-Ion Battery Influences Market Growth

The prices of Li-Ion cells are also falling; increasingly making the solar energy-battery storage combination to power energy needs a reality and thus promoting the market growth and propelling the India Lithium-ion Battery Market opportunities of the Indian Lithium-Ion battery industry across the globe. In 2021, Li-ion batteries cost around $400 per kWh to produce but with improvements in battery technology, this cost has substantially come down. Today, batteries are around $200 per kWh. Tesla claims that the Tesla Model 3 battery comes at a cost below the $190 per KWh mark.

Indian companies are exporting Li-Ion cells across the globe and also making battery packs in India to increase the market size. Setting up a cell manufacturing unit is an expensive proposition as compared to importing cells and manufacturing packs. IESA's Dash also said public sector units are eyeing energy storage and Li-Ion cell manufacturing in India. The Indian Space Research Organization (ISRO) developed a Li-Ion battery technology for use in its satellites and launch vehicles such as GSLV and PSLV. ISRO is teaming up with heavy electric equipment maker BHEL to help develop low-cost Li-Ion batteries.
India Lithium-ion Battery Market Segment Analysis
Based on the Type, the market is segmented into the Lithium Nickel Manganese Cobalt, Lithium Iron Phosphate, Lithium Cobalt Oxide, Lithium Titanate Oxide, Lithium Manganese Oxide and Lithium Nickel Cobalt Aluminum Oxide. Lithium Iron Phosphate is expected to dominate the India Lithium-ion Battery Market during the forecast period. LFP batteries, also known as LiFePO4 batteries, are distinguished by their long service life, often exceeding five years, and their high current rating. These batteries offer excellent electrochemical performance with low resistance and superior thermal stability compared to other lithium-ion chemistries. With a nominal voltage of 3.2V per cell, LFP batteries are widely used in e-mobility and solar energy storage applications. Their high thermal stability, enhanced safety, and tolerance in adverse conditions make them ideal for various high-power applications. The low cost, minimal toxicity, and robust performance of LFP batteries have made them a preferred choice for a range of uses, from electric vehicles (EVs) to utility-scale stationary storage and backup power solutions.

The growing preference for LFP batteries is reflected in their increasing adoption in the Indian market. Sparkle, a key player in the industry, provides lithium iron phosphate batteries in 12-volt, 24-volt, and 48-volt configurations, highlighting their suitability for diverse applications such as power storage in RVs, vans, boats, golf carts, and off-grid homes. LFP batteries stand out from other lithium-ion batteries due to their high charge density, extended lifespan, and ability to deep cycle while maintaining power. The advantages of LFP batteries in terms of cost-effectiveness and safety make them a leading choice. Karacus Energy, a prominent supplier based in Delhi, emphasizes the benefits of LFP batteries over traditional lead-acid batteries, such as improved electronic protection, longevity, and safety. The increasing demand for LFP batteries in India underscores their role as the dominant type in the lithium-ion battery market, driven by their reliability and performance in various high-power and energy storage applications.



Based on the Material, the market is categorized into Cathode material, Anode material, Electrolyte material, Separator material, current collector material and others. Cathode material held the largest India Lithium-ion Battery Market share in 2023. Cathode materials have emerged as the dominant component in the India Lithium-ion Battery industry, driving significant developments in the industry. Recently, Epsilon Advanced Materials (EAM) has made headlines by acquiring Johnson Matthey’s lithium-ion phosphate (LFP) cathode active material technology center in Moosburg, Germany. This acquisition marks a milestone for India, positioning it as the first country in Asia outside China to manufacture LFP cathode materials. EAM’s move is part of a broader strategy to reduce global dependency on Chinese production, which currently supplies approximately 70% of cathode materials and 100% of LFP cathode materials. EAM plans to establish a new facility in India with an investment of $1.1 billion, aimed at producing up to 100,000 tons of LFP material by 2030. This initiative will enhance India’s capability to produce high-performance cathode materials, contributing significantly to the local and global battery markets.

LFP cathodes are known for their extended lifespan, high thermal stability, and lower production costs compared to nickel and cobalt-based alternatives. They also provide improved safety and lower maintenance requirements, making them a preferred choice for many battery manufacturers. EAM’s acquisition of the Moosburg technology center allows it to scale up the production of LFP and lithium manganese iron phosphate (LMFP) cathodes, using advanced hydrothermal processes that ensure cleaner and more sustainable metal processing. This strategic investment underscores the critical role of cathode materials in the evolution of lithium-ion batteries and positions India as a significant player in the global battery supply chain.


India Lithium-ion Battery Market Regional Insights
South India is expected to dominate the India Lithium-ion Battery Market during the forecast period.
South India, particularly the state of Karnataka, is the dominant region for the Indian lithium-ion battery market due to a confluence of strategic factors that make it an epicenter of battery production and innovation. Karnataka, with its capital Bengaluru, has developed into a major hub for the technology and automotive industries, thanks to its robust industrial infrastructure and favorable business environment. The state's comprehensive support for technology-driven industries, including generous incentives and policy frameworks, has attracted significant investments from global and domestic companies.

For instance, in 2023Epsilon Advanced Materials (EAM) announced a substantial $1.1 billion investment to build a large-scale lithium-ion battery manufacturing facility in Bellari, Karnataka, underscoring the region’s appeal for high-tech manufacturing. This investment is complemented by the presence of numerous automotive manufacturers and electric vehicle (EV) companies in the region, which drive demand for lithium-ion batteries and foster an ecosystem of collaboration and innovation. The southern region’s established industrial base, combined with a proactive state government supporting advanced manufacturing, creates a synergistic environment that accelerates growth and technological advancement in the lithium-ion battery sector. Furthermore, Karnataka’s strategic location and connectivity to other industrial hubs across India enhance its role as a central player in the lithium-ion battery market. Other southern states such as Tamil Nadu and Andhra Pradesh also contribute to this dominance, leveraging similar advantages to bolster the region's overall position in the battery manufacturing landscape.
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India Lithium-ion Battery Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
USD 2.54 Bn.


Forecast Period 2024 to 2030 CAGR:
15.4%
Market Size in 2030:
USD 6.92 Bn.


 Segments Covered:
By Type
Lithium Nickel Manganese Cobalt
Lithium Iron Phosphate
Lithium Cobalt Oxide
Lithium Titanate Oxide
Lithium Manganese Oxide
Lithium Nickel Cobalt Aluminum Oxide


By Material
Cathode material
Anode material
Electrolyte material
Separator material
Current collector material
Others


By Capacity
Below 3,000 mAh
3,001 – 10,000 mAh
10,001 – 60,000 mAh
Above 60,000 mAh


By Application
Consumer Electronics
Automotive
Energy Shortage (Power)
Industrial Applications (Aerospace, Marine, Medical, Telecommunications, Others)



India Lithium-ion Battery Market, by Region
North India
South India
East India
West India
India Lithium-ion Battery Key Players
1. Battrixx ( Bengaluru, Karnataka, India)
2. Contemporary Amperex Technology Co., Ltd. (CATL) ( Bengaluru, Karnataka, India)
3. Exicom Tele(Systems Limited ( New Delhi, India)
4. Grinntech Motors & Services Pvt. Ltd.( Chennai, Tamil Nadu, India)
5. Guoxuan High (Gotion High Tech Co. Ltd.) ( Bengaluru, Karnataka, India)
6. LG Energy Solution Ltd. ( Pune, Maharashtra, India)
7. Panasonic Life Solutions India Pvt. Ltd. ( Mumbai, Maharashtra, India)
8. Samsung SDI Co., Ltd. ( Bengaluru, Karnataka, India)
9. Toshiba Corporation (Toshiba India Pvt. Ltd.) ( New Delhi, India)
10. Trontek Electronics Pvt. Ltd. ( Pune, Maharashtra, India)
11. Coslight India Telecom Pvt. Ltd. ( Noida, Uttar Pradesh, India)
12. Cygni Energy Private Limited ( Hyderabad, Telangana, India)
13. Euclion Energy Private Limited ( Bengaluru, Karnataka, India)
14. Future Hi(Tech Batteries ( Surat, Gujarat, India)
15. Greenfuel Energy Solutions ( Bengaluru, Karnataka, India)
16. Log9 Materials Scientific Pvt Ltd. ( Bengaluru, Karnataka, India)
17. Loom Solar Pvt. Ltd. ( Faridabad, Haryana, India)
18. Okaya Power Pvt. Ltd. ( New Delhi, India)
19. Waaree ESS ( Mumbai, Maharashtra, India)

Frequently Asked Questions:
1] What is the growth rate of the India Lithium-ion Battery Market?
Ans. The India Lithium-ion Battery Market is growing at a significant rate of 15.4 % during the forecast period.

2] Which region is expected to dominate the India Lithium-ion Battery Market?
Ans. South India is expected to dominate the India Lithium-ion Battery Market during the forecast period.

3] What is the expected India Lithium-ion Battery Market size by 2030?
Ans. The India Lithium-ion Battery Market size is expected to reach USD 6.92 Bn by 2030.

4] Which are the top players in the India Lithium-ion Battery Market?
Ans. The major top players in the India Lithium-ion Battery Market are Danone, Nestle, Yakult Honsha Co., Ltd., Lactalis, General Mills, Chobani, Müller Group, Yoplait, Arla Foods, Kraft Heinz, FrieslandCampina, Parmalat, Fonterra Co-operative Group, Mother Dairy, Meiji Co., Ltd. and Others.

5] What are the factors driving the India Lithium-ion Battery Market growth?
Ans. The increasing adoption of electric vehicles and government schemes employed by India are expected to drive market growth during the forecast period.