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India’s Electric Future: Soaring Battery Demand, Sustainable Solutions

Surging Indian battery demand drives electrification for climate change. Manufacturers must adopt sustainability and collaboration for growth.


  • Global Li-ion demand surges due to sustainability and EV adoption.
  • Indian market faces challenges but holds strong growth potential.
  • Industry players drive technological advancements and product expansion.
  • As per Ken Research estimates, South India emerges as a key player in India’s lithium-ion battery market.

Indian battery demand is surging to combat climate change via electrification & energy transition. Underestimated forecasts project the lithium-ion battery chain to surge from 2.3 GWh in FY2021 to 104 GWh in FY2030. Battery manufacturers including companies not yet in Li-ion battery market must adopt sustainable practices, collaborate, standardize processes, and enhance data transparency for them to stand out & generate value while protecting the environment.

1. Li-ion to be the next big thing?

Global Li ion Battery Cell Demand

Also Read: Global battery Market trends

Global Li-ion battery demand is projected to skyrocket in the next decade, reaching 4.7 TWh by 2030 globally, driven by the increasing need for sustainable solutions. The majority of this demand surge, around 4,300 GWh, is expected to generate from mobility applications, particularly electric vehicles (EVs).

This demand is fueled by regulatory shifts towards sustainability, customer adoption of greener technologies, and OEM commitments to ban internal combustion engine (ICE) vehicles. Moreover, the India government has set a 30 percent electric car sales target by 2030. The Central Electricity Authority predicts that India will need 34 GW/136 GWh of battery storage to add 450 GW of renewable sources. This will speed up the country’s move to becoming a major user of lithium batteries.

2. But what about its cons?

India Li ion Battery Market Demand

Also Read: Battery Market Dynamics

All the trendy, sustainable stuff about Li-ions seems great but when it comes to personal usage, anyone would probably think about the need to recharge their vehicle’s battery every few hours. Sustainable much? Then comes the time taken to charge it which is something you’d probably skip but cannot because of the dire need of the situation. This is not only a roadblock on an individual level but can also prove to be a huge deterrent for the market growth in the long term. But what if you could remove your dead battery and swap it with a fully charged one? This is something that the Indian Government proposed in its 2021-22 annual budget by the name, ‘battery swapping,’ This technology significantly reduces the charging time while also decreasing the load on the electric grid.

One of the success stories in the battery swapping space that can be emulated across India is that of Gogoro. A Taiwanese company that is changing the way EVs are viewed across SEA and have to date swapped over 300-Mn batteries.

3. That was global. What about the Indian scenario?

growth trends in Li ion battery market

Read more about the growth trends in Li-ion battery market

The availability of raw materials and skilled labor is limited in India, which is acting as a major roadblock for the growth of the market in the country. Moreover, the presence of stringent environmental regulations and high import tariffs is also deterring the growth.

Despite these challenges, the lithium-ion battery market in India is anticipated to witness strong growth in the near future. This can be attributed to a decent surge in demand for cost-effective and efficient energy storage solutions in the automotive, consumer electronics, and power industries. Furthermore, the government’s recent initiatives and policy reforms such as National Mission on Transformative Mobility and Battery Storage (2020) & FAME II and FAME India Scheme are expected to further boost the industry’s growth.

4. On which side is the growth trend tilting?

Competitive Scenario in Li ion battery market

Competitive Scenario in Li-ion battery market

Leading manufacturers in the Indian lithium-ion battery market are making strides in advancing battery technologies. Inox Wind and Bhoruka Aluminum have collaborated to develop an innovative process for producing lithium-ion cells from LCO, aiming to lower manufacturing costs.

In terms of regional growth, South India, including Andhra Pradesh, Telangana, and Karnataka, is emerging as a key player in India’s lithium-ion battery market. Andhra Pradesh has established the country’s first lithium cell manufacturing facility in Tirupati, attracting a substantial investment of 165 Cr Rupees.

The facility aims to produce high-quality cells for EVs and energy storage systems, further solidifying South India’s prominence in the industry.

5. What do we predict?

Future Trends in Global Li ion Battery Industry

Future Trends in Global Li-ion Battery Industry

We at Ken Research predict that India will emerge as a significant player in the global lithium-ion battery market. With the central and state governments implementing plans for a robust battery recycling system, the focus on environmental sustainability is gaining momentum. The increasing popularity of electric cars and the surging demand for electronic devices such as laptops and smartwatches are driving the growth of Lithium Cobalt Oxide (LCO) batteries in India. LCO batteries are projected to contribute over 35% of the revenue in India’s lithium-ion battery market, indicating their substantial market presence.


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