India lithium-ion battery market generated a revenue of US$ 5,116.4 Million revenue in 2023 and is estimated to reach US$ 30,860.6 million by 2032 at a CAGR of 22.1% during the forecast period 2024–2032.

The upward trajectory of the Indian market is led by the Indian government's strategic initiatives, notably the FAME II scheme, which earmarks INR 10,000 crores to foster the electric vehicle (EV) ecosystem, and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) battery storage, offering an incentive of INR 18,100 crores to stimulate domestic manufacturing. These policies are instrumental in India's ambitious goal to have 30% of its vehicles powered by electricity by 2030, catalyzing the demand for lithium-ion batteries. Apart from this, the integration of renewable energy, with India aiming for a 450 GW capacity by 2030, further escalates the need for lithium-ion batteries as reliable energy storage solutions. The country's burgeoning consumer electronics market, one of the largest globally, also significantly contributes to India lithium-ion battery market, given the ubiquitous use of lithium-ion batteries in gadgets like smartphones and laptops. Recognizing the market potential, corporate giants such as Tata Chemicals, Reliance Industries, and Mahindra Electric are channeling investments into battery manufacturing and research, enhancing India's manufacturing capabilities.

However, India's heavy reliance on imports for lithium-ion cells, primarily from China, South Korea, and Japan, underscores the critical need for bolstering domestic production. This necessity has spurred the government and private sector to invest in research and development for alternative materials and battery technologies, aiming to mitigate import dependence. The India lithium-ion battery market landscape is also witnessing significant strides in infrastructure development, with a focus on erecting charging stations and battery swapping facilities to support the EV market. Initiatives are underway to electrify public transportation, with several states launching projects to introduce electric buses, which will, in turn, drive up the demand for lithium-ion batteries. The policy framework supporting this sector is robust, highlighted by the National Mission on Transformative Mobility and Battery Storage, which aims to create an ecosystem conducive to manufacturing and adoption of lithium-ion batteries.

To tackle the import challenge and ensure a steady supply of raw materials, India is forging international collaborations with countries like Argentina, Australia and Bolivia for lithium mining and battery production. This strategic move is part of a broader effort to secure raw material supplies and facilitate technology exchange, essential for the country's aspirations in the lithium-ion battery market.

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Market Dynamics 

Driver 

Increasing Adoption Electric Vehicle in India Lithium-Ion Battery MarketDue to Favorable Government Policies 

The use of Li-ion batteries in electric vehicles and electronic devices has seen a sharp rise and is expected to continue to grow in the future, making Li-ion battery recycling a crucial aspect. Recycling helps reduce the dependence on imported raw metals and eliminates health and environmental hazards. The Indian government has introduced laws offering tax benefits to recyclers to encourage the practice. Battery manufacturers in the lithium-ion battery market are required to collect spent batteries under the Extended Producer Responsibility (EPR) regulations. The implementation of the Battery Waste Management Rules has led to an increase in battery recycling by approved recyclers, thereby boosting the availability of raw materials in the domestic market.

The Indian government and leading market players have taken various initiatives to establish Li-ion battery assembly factories. Companies such as Panasonic Corporation, Amara Raja Batteries Ltd, and Exide Industries Ltd are exploring the possibility of setting up factories in India. Indian Oil Corporation Ltd. has also announced plans to establish a 1 GW battery manufacturing plant in collaboration with a foreign start-up.

In addition, auto manufacturers in the India lithium-ion battery market are entering the battery manufacturing business as a secondary market for electric vehicles. Suzuki Motor Corp. is partnering with Toshiba Corporation and Denso to build a factory in Gujarat, with an investment of USD $180 million. Li Energy has established a Li-ion cell manufacturing facility in Tamil Nādu, with plans to scale it up to 150 MW.

Restraints 

• Lack of a domestic manufacturing base: India does not have a significant lithium-ion battery manufacturing base, with most batteries being imported. This lack of a domestic manufacturing base makes it difficult for India to achieve scale in production and drive down costs.
• Low electric vehicle adoption: Electric vehicles (EVs) are one of the main applications for lithium-ion batteries. However, EV adoption in India has been low, due in part to high initial costs and lack of infrastructure. This low EV adoption limits the potential for India lithium-ion battery market.
• High raw material costs: Lithium-ion batteries require several rare earth metals and minerals, which can be expensive to procure. This increases the cost of manufacture for battery makers, making it challenging to compete on price with other battery technologies.
• Stringent government regulations: The Indian government has placed stringent regulations on the import and export of lithium-ion batteries, in an effort to boost the domestic manufacturing industry. These regulations make it difficult for battery manufacturers to source materials and components from outside India, raising production costs.

Market Segmentation 

The report includes India lithium-Ion battery market analysis on basis of following segments: type, power capacity, application and form/ design. 

By Type 

Lithium Cobalt Oxide (LCO) batteries, known for their high energy density and long cycle life, have become a cornerstone in the India lithium-ion battery market. As of 2023, these batteries captured approximately 36% of the global Lithium-Ion battery market share, highlighting their significant role in various electronic devices. LCO batteries have become the go-to option for laptops, cell phones, and numerous other electrical appliances thanks to their outstanding performance characteristics. The prominence of LCO batteries stems from their exceptional energy density, which is a crucial factor in applications where space and weight are limited. This attribute is particularly beneficial in consumer electronics, where compact and lightweight designs are in high demand. Moreover, the long cycle life of LCO batteries ensures durability and reliability, making them a preferred choice for manufacturers.

Despite their advantages, LCO batteries face challenges due to the high cost of cobalt. This material, vital for the production of these batteries, has a significant impact on the overall cost. In response, there is a growing trend towards researching alternative materials that could potentially reduce production costs while maintaining, or even enhancing, battery performance. The market's response to these challenges will shape the future trajectory of LCO batteries. As manufacturers strive to balance cost and performance, the evolution of LCO technology will continue to play a pivotal role in the consumer electronics industry and beyond.

By Power Capacity 

By power capacity, 3000-10000 mAH segment is leading the market by holding more than 33.5% revenue share. On the other hand, batteries particularly those exceeding 60,000 mAh, are witnessing a highest growth at a CAGR of over 28% in the India lithium-ion battery market. This surge is primarily fuelled by the escalating adoption of electric vehicles (EVs) and the burgeoning need for robust, long-lasting batteries that can meet the demands of this rapidly expanding market. The exponential growth in the EV sector is a testament to the shift in consumer preferences and the automotive industry's commitment to sustainable transportation. As EVs continue to evolve, offering longer ranges and more efficient performance, the demand for high-capacity LCO batteries is expected to rise correspondingly. These batteries are integral to the EV revolution, providing the necessary power to ensure reliable and extended range travel.

LCO batteries in the India lithium-ion battery market are particularly advantageous in high-power applications due to their high energy density. This makes them ideal for electric vehicles, where maximizing energy storage within a limited space is crucial. The ability to store more energy per unit volume enables EVs to travel longer distances between charges, a key factor in the growing consumer acceptance and popularity of electric vehicles. However, challenges remain, particularly in terms of cost and the development of battery technology that can deliver even higher capacities and longer lifespans. Research and development in this area are crucial, as the future of the EV market heavily relies on advancements in battery technology, including LCO batteries. As the EV market continues to expand, the role of LCO batteries becomes increasingly significant. Their continued development and adaptation to meet the evolving demands of electric vehicles will be crucial in shaping the future of transportation.

By Form

By Form, India Lithium-Ion battery market is led by pouch cells. The pouch cell configuration with more than 31.6% market share. The segment offers an impressive packaging efficiency rate of 90 to 95%, making it the most space-efficient solution among battery pack designs. This efficiency, coupled with its adaptability, has cemented its position as a preferred choice across diverse industries, including consumer electronics, military applications, and, importantly, the automotive sector.

The versatility of pouch cell batteries, especially in the context of LCO technology, is a significant driver in their widespread adoption. These batteries are adept at meeting the varied demands of different applications, from compact consumer electronics requiring slim and lightweight solutions to demanding military applications where reliability under extreme conditions is paramount. In the automotive sector, the adaptability and efficiency of pouch cell batteries are instrumental across India lithium-ion battery market for meeting the evolving needs of electric vehicles, which require high energy density and long cycle life. As the EV market continues to grow, driven by technological advancements and shifting consumer preferences, the demand for efficient and high-performing LCO batteries is expected to surge. This growth is not only a testament to the technological prowess of LCO batteries but also indicative of a broader shift towards more sustainable and environmentally friendly energy solutions. The continued innovation and development in LCO battery technology will be pivotal in supporting the expanding range of applications, from everyday consumer electronics to the burgeoning field of electric vehicles.

By Application 

Based on the application, the consumer electronics OEM's segment currently dominates the market, holding the highest revenue share of 43.1% due to India's vast and continuously growing consumer base for electronic gadgets such as smartphones, laptops, tablets, and other personal electronic devices. The reliance on these devices in daily life, combined with India's demographic profile of a young and tech-savvy population, drives the demand for lithium-ion batteries, ensuring their pivotal role in powering consumer electronics.

However, the landscape of the lithium-ion battery market in India is poised for a dynamic shift, particularly in the automotive Original Equipment Manufacturers (OEMs) segment. This segment is projected to witness the highest CAGR of 35.3% in the upcoming years. This forecasted growth is largely fueled by the Indian government's push towards electric vehicles (EVs) as a part of its commitment to sustainability and reducing the carbon footprint of the transportation sector. Initiatives such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and the production-linked incentive (PLI) scheme for the automotive sector are significant catalysts propelling this growth. As battery technology continues to evolve and the infrastructure for EVs expands, lithium-ion batteries are set to play a crucial role in India's automotive industry, marking a significant shift from traditional fuel-based vehicles to cleaner, more sustainable electric options. This evolution indicates a broader trend towards green energy solutions, with lithium-ion batteries at the forefront of this transformative journey in India's energy and transportation sectors.

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Recent Developments in India Lithium-Ion Battery Market 

• July 2022: Sanvaru Technology expanded its Lithium-ion battery production capacity to 400 MWh per year in India to cater to the growing EV market.
• May 2022: Nexcharge, a joint venture between Indian battery manufacturer Exide and Switzerland's Leclanche SA, began production at a lithium-ion battery plant in Gujarat with an installed capacity of 1.5 GWh for energy storage and automobiles.
• June 2023: Tata Group subsidiary Agratas Energy Storage Solutions Private Limited signed an agreement with the Gujarat government to establish India's first gigafactory for Lithium-Ion batteries, with an initial investment of USD 1.57 billion for a 20 GW unit.
• December 2022: Amara Raja Batteries Limited announced plans to invest over USD 1,148.89 million over ten years to set up R&D and a greenfield manufacturing plant for lithium-ion battery production in Telangana's Mahbubnagar district to gain momentum in India lithium-ion battery market.
• June 2022: Researchers at IIT Madras worked on developing mechanically rechargeable zinc-air batteries as an alternative to lithium-ion batteries for EVs.
• February 2023: Renault and Nissan announced a new vision for India, including increased production and R&D, introducing EVs, and shifting to carbon-neutral manufacturing. They plan to collaborate on six new vehicles, including two fully electric cars, with an expected investment of about USD 600 million.
• January 2023: The Indian Government announced the National Mission on Transformative Mobility and Battery Storage to create an ecosystem for manufacturing high-performance, safe, and affordable batteries in India.
• 2023: The Indian Government reduced the GST on all types of lithium-ion batteries from 28% to 18%, making them more affordable.
• 2023: South Indian states like Andhra Pradesh, Telangana, and Karnataka emerged as key players in the India lithium-ion battery market. Andhra Pradesh established India's first lithium cell manufacturing facility in Tirupati, and Telangana attracted investments from over 20 companies to create a favorable ecosystem for the industry.
• 2023: Karnataka attracted investments for developing an integrated ecosystem for the lithium-ion battery market, including setting up a dedicated lithium-ion battery park.

List of Key Companies Profiled:

• ISRO
• Amara Raja Group
• HBL Power Systems Limited
• EON Electric Ltd.
• Exide Industries Ltd.
• Microtex Energy Pvt. Ltd.
• Mercom Capital Group, LLC
• Tata Chemicals
• Bharat Heavy Electricals Ltd.
• BYD Company
• LG Chem
• Panasonic Corporation
• Samsung SDI
• BAK Group
• Hitachi Corporation
• Johnson Controls
• Toshiba Corporation
• Other Prominent Players

Market Segmentation Overview:

By Product Type 

• Lithium Nickel Magnesium Cobalt (LI-NMC)
• Lithium Ferro Phosphate (LFP)
• Lithium Cobalt Oxide (LCO)
• Lithium Titanate Oxide (LTO)
• Lithium Manganese Oxide (LMO)
• Lithium Nickel Cobalt Aluminum Oxide (NCA)

By Power Capacity

• 0-3,000 mAH
• 3,000-10,000 mAH
• 10,000-60,000 mAH
• More than 60,000 mAH

By Form/Design

• Pouch
• Cylindrical
• Elliptical
• Prismatic
• Custom Design

By Application

• Consumer Electronics OEMs
  • Smartphones
  • Laptops
  • UPS Systems
  • Smart Cameras
  • Smart Watches
  • Smart Glasses
  • Smart Textiles
  • Others
• Automotive OEMs
  • Hybrid Electric Vehicles (HEVs)
  • Battery Electric Vehicles (BEVs)
  • Others (Service Stations/Dealers)
• Energy Storage
  • Commercial
  • Industrial
  • Residential
  • Utilities
• Industrial OEMs
  • Military
  • Industrial Equipment
  • Medical
  • Marine
  • Telecommunication
  • Mining
  • Forklifts
  • Others
• Other OEMs
• Aftermarket

By Region

• North
  • Uttar Pradesh
  • Rajasthan
  • Delhi
  • Haryana
• South
  • Tamil Nadu
  • Kerala
  • Karnataka
  • Andhra Pradesh
• East
  • West Bengal
  • Bihar
  • Assam
• West
  • Gujarat
  • Madhya Pradesh
  • Maharashtra