A report by ICRA projects that India will have over 150 GWh of lithium-ion battery cell capacity by 2030, with investments exceeding ₹75,000 crore, as demand grows across the EV sector and stationary applications.
22 Mar 2025 | 2281 Views | By Sarthak Mahajan
India's lithium-ion (Li-ion) battery industry is set to receive investments exceeding ₹75,000 crore by 2030, with over 150 GWh of battery cell manufacturing capacity expected to become operational, according to a recent report by ICRA.
The country's electric vehicle (EV) sector is expanding, driven by government initiatives, increasing ...
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India's lithium-ion (Li-ion) battery industry is set to receive investments exceeding ₹75,000 crore by 2030, with over 150 GWh of battery cell manufacturing capacity expected to become operational, according to a recent report by ICRA.
The country's electric vehicle (EV) sector is expanding, driven by government initiatives, increasing consumer awareness, and the introduction of new models. With battery cells accounting for 35-40% of an EV's total cost, the focus on domestic manufacturing is increasing to reduce reliance on imports and strengthen the local supply chain.
Currently, China leads the global Li-ion battery market, dominating raw material processing and manufacturing. Battery prices have witnessed a decline of approximately 20% in 2024 due to an increase in supply. In the coming years, global Li-ion battery production is expected to surpass demand, which could influence pricing trends in India.
India's dependence on battery cell imports remains high, with local operations primarily focused on assembling battery packs. Demand for Li-ion battery cells in the country is projected to reach 11-13 GWh by FY2025 and is expected to grow significantly to 60-65 GWh by FY2030. Apart from EVs, demand for these batteries is also expected to rise in stationary applications.
Despite the growth potential, challenges persist in establishing a robust battery cell manufacturing industry. Uncertainties related to investment returns, technology reliability, and raw material sourcing continue to pose risks. Additionally, the development of battery recycling infrastructure remains limited. However, with policy support and increasing private sector participation, India is gradually moving towards reducing import dependence and strengthening its domestic EV battery ecosystem.