India Lithium-Ion Battery Market Overview:
India Lithium-Ion Battery Market Size was estimated at 5.54 (USD Billion) in 2023.The India Lithium-Ion Battery Market Industry is expected to grow from 5.97 (USD Billion) in 2024 to 22.43 (USD Billion) by 2035. The India Lithium-Ion Battery Market CAGR (growth rate) is expected to be around 12.787% during the forecast period (2025 - 2035).
Key India Lithium-Ion Battery Market Trends Highlighted
The growth of the India Lithium-Ion Battery Market is propelled greatly by the need for electric vehicles (EVs) and renewable energy storage systems. Electrification of the Indian transport sector through schemes like FAME has contributed to boosting the market. The policy intends to enhance the manufacturing and consumption of EVs, which has an impact on lithium-ion batteries. The investment motivation in the energy sector battery production is also rising due to the net zero carbon target by 2070.
There are uncharted possibilities available in the India Lithium-Ion Battery Market in the field of advanced battery recycling technologies. Sustainably, the circular economy aids in the domestic production of new batteries. The integration of lithium-ion batteries for energy storage in solar and wind projects offers vast opportunities in India. Recently, there seems to be an upward shift in partnerships between local manufacturers and foreign firms to aid in the development of local production and the transfer of technology.
This trend boosts the local manufacturing as well as ‘Make in India’ policies. Additionally, increasing consumer concern about sustainable energy is further compelling manufacturers to improve the efficiency and longevity of their batteries. Consequently, the market for Lithium-Ion Batteries in India is changing at a rapid pace, driven by the government’s policies, new technologies, and growing consumer attention.
India Lithium-Ion Battery Market Drivers
Increasing Demand for Electric Vehicles
The rapid growth of the electric vehicle (EV) market in India has been a significant driver for the India Lithium-Ion Battery Market Industry. The government's push for EV adoption is reflected in the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which aims to promote electric and hybrid vehicles. According to the Ministry of Heavy Industries and Public Enterprises, the number of electric vehicles sold in India reached approximately 1.56 million units in the financial year 2020-2021, a substantial increase from previous years.This rising trend indicates a strong demand for lithium-ion batteries, which are critical for EV operation. With automotive giants like Tata Motors and Mahindra Electric expanding their EV portfolios, the need for efficient and durable lithium-ion batteries will continue to surge, propelling the market growth forward.
Government Initiatives and Policy Support
The Indian government has implemented several initiatives to enhance the growth of the lithium-ion battery sector. The National Electric Mobility Mission Plan (NEMMP) aims to support the electric vehicle transition, particularly focusing on improving the battery manufacturing ecosystem in India. This is crucial, considering that India intends to reduce its dependency on imported batteries, thus driving self-sufficiency. According to government reports, the National Policy on Electric Mobility envisions that by 2030, 30% of all vehicles on Indian roads will be electric, which will significantly boost the demand for lithium-ion batteries.
Rising Investments in Renewable Energy Storage
As India aims to boost its renewable energy capacity significantly, the role of lithium-ion batteries in energy storage is gaining prominence. The Indian government has set a target of achieving 450 GW of renewable energy capacity by 2030. The Ministry of Power has highlighted that effective energy storage solutions are crucial to managing this large influx of renewable energy resources. In 2021, investments in energy storage systems surged, demonstrating increased market interest.With numerous renewable energy projects being established across the country, the demand for lithium-ion batteries, which provide efficient and scalable storage solutions, is expected to rise sharply.
India Lithium-Ion Battery Market Segment Insights:
Lithium-Ion Battery Market Type Insights
The India Lithium-Ion Battery Market is characterized by a diverse range of types, each fulfilling specific applications and market demands. Among these types, Lithium Nickel Manganese Cobalt (NMC) batteries have gained significant traction in the electric vehicle (EV) sector due to their excellent energy density and thermal stability, making them particularly ideal for applications that require high performance under demanding conditions. Lithium Manganese Oxide (LMO) batteries, known for their enhanced safety features and cost-effectiveness, find extensive use in power tools and medical applications, showcasing their versatility in the market.
Lithium Iron Phosphate (LFP) batteries are noteworthy for their long cycle life and thermal stability, which are essential for large-scale energy storage solutions and renewable energy integrationan area of growing importance in India as the nation seeks to enhance its energy security and sustainability. The Lithium Cobalt Oxide (LCO) segment is well-established, especially in consumer electronics due to its favorable energy-to-weight ratio, highlighting its dominance in a rapidly evolving technology landscape that continues to prioritize compact and lightweight solutions. In recent years, Lithium Nickel Cobalt Aluminum Oxide (NCA) batteries have also come to the forefront, especially within the EV market, as they offer high capacity and great efficiency, contributing to longer driving ranges for electric vehicles.
Furthermore, Lithium Titanate Oxide (LTO) batteries, while niche, are gaining attention for their fast charge capabilities and extensive lifecycle, which could serve applications that demand quick turnaround times like buses or large commercial vehicles. This growing diversity among types within the Lithium-Ion Battery Market reflects an industry that is evolving to meet specific needs across a broad spectrum of applications. The ongoing advancements in battery technology, driven by Research and Development efforts focused on improving energy densities, cycle life, and cost-effectiveness, are instrumental in not only meeting current demands but also enhancing future prospects for growth within the India Lithium-Ion Battery Market.
This emphasis on innovation, coupled with India's push towards building a robust electric vehicle ecosystem, energy storage solutions, and renewable energy adoption, will likely significantly shape future demand across these various types. Moreover, understanding the strengths and applications of each battery type will be fundamental for stakeholders as they navigate the competitive landscape of the India Lithium-Ion Battery Market, ensuring that they can capitalize on emerging opportunities and respond dynamically to market changes.
Lithium-Ion Battery Market Capacity Insights
The Capacity segment of the India Lithium-Ion Battery Market plays a crucial role in determining the applications and market dynamics. The market demonstrates a diverse segmentation, including categories such as 0-3000 mAh, 3000-10000 mAh, 10000-60000 mAh, and above 60000 mAh. The demand for batteries in the 3000-10000 mAh range has seen a rise, especially driven by portable electronic devices such as smartphones and tablets, which constitute significant consumer spending in India. Meanwhile, the 10000-60000 mAh range is gaining traction due to its applications in electric vehicles and renewable energy storage systems, supporting government initiatives towards sustainable energy and reducing carbon emissions.
Higher capacity batteries, particularly those above 60000 mAh, are becoming essential for large-scale applications like electric buses and grid storage solutions, highlighting the need for domestic production capabilities to meet this growing demand. Overall, the shift towards electric mobility and energy storage solutions in India is heavily influencing the Lithium-Ion Battery Market, presenting both challenges in manufacturing and substantial opportunities for innovation and investment.
Lithium-Ion Battery Market Voltage Insights
The Voltage segment of the India Lithium-Ion Battery Market plays a crucial role in defining the applications and performance of batteries across various industries. With the increasing demand for portable electronic devices, electric vehicles, and renewable energy storage solutions in India, this segment has seen substantial growth. The segment is divided into three categories: Low, Medium, and High voltage batteries. Low voltage batteries, typically used in consumer electronics and small appliances, dominate the market due to their compact size and efficiency.Medium voltage batteries, utilized in electric vehicles and many industrial applications, are gaining traction as they balance energy density and performance.
High voltage batteries cater to specialized sectors, including grid energy storage and heavy-duty transport, showcasing the versatility and scalability of lithium-ion technology. Government initiatives promoting electric mobility and renewable energy adoption further augment the significance of these voltage classifications. Overall, the Voltage segment of the India Lithium-Ion Battery Market sees ongoing innovation, driven by advancements in technology and increasing energy requirements, positioning it as a foundational pillar within the industry.
Lithium-Ion Battery Market Industry Insights
The India Lithium-Ion Battery Market is significantly driven by the advancements in various industries, highlighting the essential role these batteries play. The automotive sector is projected to be a major force in the market, given the increasing demand for electric vehicles and government initiatives promoting sustainable transport solutions. The consumer electronics industry also heavily relies on lithium-ion batteries for portable gadgets, which are integral in the daily lives of Indians. In the aerospace sector, lightweight and high-capacity batteries are becoming crucial for improving efficiency in aircraft operations, while the marine industry is adapting these solutions for eco-friendly vessels.
Additionally, the industrial segment is experiencing growth as companies look to optimize energy usage and productivity through power storage solutions. The telecommunications sector is witnessing a robust demand for reliable power sources to maintain uninterrupted connectivity, while the medical field is advancing with portable devices powered by lithium-ion batteries that enhance patient care. The ongoing technological innovations and government policies supporting battery manufacturing in India offer significant potential for growth across all these segments, making them vital contributors to the overall landscape of the India Lithium-Ion Battery Market.
India Lithium-Ion Battery Market Key Players and Competitive Insights:
The India Lithium-Ion Battery Market has witnessed significant growth and competitiveness in recent years, driven by the increasing demand for renewable energy sources, electric vehicles, and portable electronic devices. This growth has led to a surge in investments, technological advancements, and collaborations among various stakeholders aiming to capture a larger share of the market. The competitive landscape is marked by both domestic and international players who aim to leverage their unique strengths, such as advanced manufacturing capabilities, innovative technologies, and strategic partnerships, to gain an edge over their rivals. The emphasis on sustainability and government incentives to promote electric mobility and energy storage solutions further catalyze the competitive dynamics, leading to an innovative environment that seeks to address the evolving needs of consumers and industries alike.
Exide Industries has established a strong foothold in the India Lithium-Ion Battery Market, renowned for its extensive experience in battery manufacturing and a robust distribution network. The company leverages its existing expertise in lead-acid batteries to expand into lithium-ion solutions, thus enhancing its product portfolio. Strategic investments in research and development have enabled Exide Industries to innovate and improve battery performance, contributing to its brand reputation as a reliable energy storage solutions provider. The company's commitment to high-quality products and efficient customer service has strengthened its market presence, allowing it to cater to the growing needs of industrial, automotive, and consumer electronics sectors in India, further solidifying its competitive position.Mahindra Electric Mobility, a key player in the India Lithium-Ion Battery Market, focuses on electric mobility solutions that align with the growing demand for sustainable transportation.
The company produces a range of electric vehicles and has pioneered the development of battery technology tailored for these applications. Mahindra Electric Mobility is known for its strong emphasis on manufacturing in India, contributing to local job creation and self-sufficiency. The company’s strength lies in its robust research and development capabilities, which facilitate advancements in battery technology and vehicle integration. Strategic partnerships and collaborations with various stakeholders allow Mahindra Electric Mobility to enhance its product offerings and expand its market reach. The firm has made notable strides in achieving sustainable mobility through innovations in electric powertrains, thereby positioning itself as a formidable competitor in India's burgeoning lithium-ion battery landscape.
Key Companies in the India Lithium-Ion Battery Market Include:
- Exide Industries
- Mahindra Electric Mobility
- Ola Electric
- JSW Energy
- Sun Mobility
- Bharat Forge
- LG Chem
- Amara Raja Batteries
- Panasonic
- Ather Energy
- Reliance Industries
- Luminous Power Technologies
- Samsung SDI
- BYD
- Tata Chemicals
India Lithium-Ion Battery Industry Developments
The India Lithium-Ion Battery Market has witnessed significant developments recently, particularly with companies like Ola Electric and Mahindra Electric Mobility ramping up their production capabilities to meet the surging demand for electric vehicles. In September 2023, Exide Industries announced a strategic partnership with a foreign firm to enhance its lithium-ion battery technology, reflecting a growing trend of collaboration within the sector. Meanwhile, in August 2023, Reliance Industries expressed intentions to scale its investments in energy storage solutions, directly contributing to the battery manufacturing ecosystem.
On the mergers and acquisitions front, Sun Mobility acquired a 30% stake in Ather Energy in July 2023, solidifying its position in the electric mobility landscape. Furthermore, Tata Chemicals has been diversifying its portfolio by entering into lithium extraction projects in India. The market has seen a notable valuation growth amid the government's push for electric mobility and renewable energy initiatives, with a remarkable increase in investments aimed at bolstering local manufacturing of batteries. These events highlight a dynamic and evolving landscape in the Indian Lithium-Ion Battery Market, driven by innovation and increased demand for sustainable energy solutions.
India Lithium-Ion Battery Market Segmentation Insights
Lithium-Ion Battery Market Type Outlook
- Lithium Nickel Manganese Cobalt
- Lithium Manganese Oxide
- Lithium Iron Phosphate
- Lithium Cobalt Oxide
- Lithium Nickle Cobalt Aluminum Oxide
- Lithium Titanate Oxide
Lithium-Ion Battery Market Capacity Outlook
- 0- 3000 mAh
- 3000-10000 mAh
- 10000-60000 mAh
- 60000 mAh
- above
Lithium-Ion Battery Market Voltage Outlook
- Low (below 12V)
- Medium (below 12V-36V)
- High (Above 36V)
Lithium-Ion Battery Market Industry Outlook
- Automotive
- Aerospace
- Consumer Electronics
- Marine
- Industrial
- Power
- Telecommunication
- Medical
| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2023 |
5.54 (USD Billion) |
| MARKET SIZE 2024 |
5.97 (USD Billion) |
| MARKET SIZE 2035 |
22.43 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
12.787% (2025 - 2035) |
| REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR |
2024 |
| MARKET FORECAST PERIOD |
2025 - 2035 |
| HISTORICAL DATA |
2019 - 2024 |
| MARKET FORECAST UNITS |
USD Billion |
| KEY COMPANIES PROFILED |
Exide Industries, Mahindra Electric Mobility, Ola Electric, JSW Energy, Sun Mobility, Bharat Forge, LG Chem, Amara Raja Batteries, Panasonic, Ather Energy, Reliance Industries, Luminous Power Technologies, Samsung SDI, BYD, Tata Chemicals |
| SEGMENTS COVERED |
Type, Capacity, Voltage, Industry |
| KEY MARKET OPPORTUNITIES |
Growing electric vehicle adoption, Renewable energy storage solutions, Government incentives for manufacturing, Increasing consumer electronics demand, Expansion of charging infrastructure |
| KEY MARKET DYNAMICS |
government incentives for EVs, rising demand for renewable energy, advancements in battery technology, increasing adoption of electric vehicles, growing consumer electronics market |
| COUNTRIES COVERED |
India |
Frequently Asked Questions (FAQ) :
The India Lithium-Ion Battery Market is expected to be valued at 5.97 USD Billion in 2024.
By 2035, the overall market is anticipated to reach 22.43 USD Billion.
The expected CAGR for the market during this period is 12.787%.
Major players include Exide Industries, Mahindra Electric Mobility, and LG Chem among others.
The market value for Lithium Nickel Manganese Cobalt type is projected to reach 5.66 USD Billion in 2035.
The Lithium Iron Phosphate type is expected to grow from 1.8 USD Billion in 2024 to 6.72 USD Billion by 2035.
In 2024, Lithium Cobalt Oxide is valued at 0.97 USD Billion within the market.
The market growth is driven by advancements in electric vehicles and renewable energy storage applications.
The market is concentrated in regions with high electric vehicle and renewable energy adoption, showcasing significant demand.
Emerging trends include increased investment in battery technology and recycling initiatives to enhance sustainability.
