India Lithium-Ion Battery Market

India Lithium-Ion Battery Market Size and Share:

The India lithium-ion battery market size was valued at USD 3.20 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 9.56 Billion by 2033, exhibiting a CAGR of 12.27% from 2025-2033. The market is witnessing significant expansion, mainly impacted by amplifying requirement consumer electronics, electric vehicles, and renewable energy storage. North India dominates due to advanced manufacturing capabilities and access to raw materials. Government initiatives also boost market expansion.

The bolstering inclination towards electric vehicles (EVs) is a principal driver for the lithium-ion battery market across India. For instance, as per industry report, India is poised to become the biggest market for EVs by the year 2030, with significant elevation in investments in upcoming 8 to 10 years. In line with this, EV battery market in the country is anticipated to reach USD 27.70 Billion by the year 2028. Moreover, with the significant government's encouragement by launching numerous advantageous ventures, EV purchase is gaining rapid traction across two-wheeler as well as passenger and vehicles segment. Furthermore, with EV producers rapidly shifting their focus on lithium-ion batteries for their exceptional efficacy and energy density, the requirement for excellent-performance batteries is boosting. In addition to this, the government's incentives related to the domestic manufacturing of EV as well as EV’s battery are projected to substantially contribute to the India lithium-ion battery market growth.

India's boosting emphasis on renewable energy is substantially fueling the requirement for lithium-ion batteries, especially for energy storage systems. As the nation is actively striving to cater to its renewable energy objectives, the requirement for flexible, effective storage solutions to control intermittent power generation from sources encompassing wind or solar has heightened. For instance, as per industry reports, India installed around 3.4 GW of wind and 24.5 GW of solar capacity during the year 2024. This accounts for a 21% elevation in wind energy deployment from the year 2023. Such developments are anticipated to boost market demand. Lithium-ion batteries offer reliable, elevated-capacity energy storage with rapid charge/discharge cycles, making them ideal for renewable energy incorporation. With government regulations encouraging green energy adoption and grid modernization, the lithium-ion battery market is set to benefit from an expanding renewable energy landscape, further boosting growth.

India Lithium-Ion Battery Market Trends:

Growing Demand from Electric Vehicles (EVs)

The Indian lithium-ion battery market is experiencing notable expansion propelled by the heightening utilization of electric vehicles (EVs). For instance, as per industry reports, more than 5% of the two-wheelers, 50% of the three-wheelers, and 2% of the cars purchased during 2024 in India were all electric. In addition, government schemes, encompassing the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), are accelerating the shift towards electric mobility. Moreover, the requirement for lithium-ion batteries, particularly for electric two-wheelers and electric cars, is expected to continue rising as consumers seek eco-friendly alternatives to vehicles with conventional combustion engine. This trend is further supported by a robust local EV manufacturing sector, which is driving up domestic battery production to meet market needs, thus reducing reliance on imports.

Government Support and Policy Initiatives

The Indian government is actively supporting the lithium-ion battery sector through various policy measures, including subsidies and incentives for domestic production. Initiatives such as the Production-Linked Incentive (PLI) scheme aim to fuel production capacity, ensuring India’s self-reliance in battery production. For instance, industry reports indicate that as of 2024, India is constructing mega-scale lithium-ion battery manufacturing plans to cater to the EVs sector demand, aided by PLI initiative. The government has provided battery manufacturing capacity of 40 GWh under this initiative. The core objective is to significantly reduce dependency on imported lithium-ion batteries, which is anticipated to lower to around 20% by FY 2027. In addition, such efforts are expected to lower production costs, foster innovation, and strengthen India’s position in the global battery supply chain. Furthermore, policy efforts aimed at developing recycling infrastructure for lithium-ion batteries are creating a more sustainable battery ecosystem, contributing to long-term market growth.

Expansion of Second-Life Applications and Battery Recycling

As the adoption of lithium-ion batteries heightens notably, there is an intense emphasis on second-life as well as battery recycling applications. Indian market for lithium-ion battery is currently observing heavy investments in recycling techniques to reclaim valuable materials, such as lithium, cobalt, and nickel, which are extremely critical for the future manufacturing of battery. Second-life purposes, generally enveloping utilization of retired EV batteries for energy storage systems, are gaining traction as a cost-efficient method to prolong battery life and aid renewable energy storage. This trend is suspected to lower adverse impacts on environment, minimize expenditure for raw material, and pave new business prospects within the battery landscape. For instance, as per industry reports, Rubamin launched its lithium-ion battery recycling venture in India with plans to construct a recycling facility with the capacity of 30,000 Million Tons. The operations are anticipated to initiate in July 2024. This plant will process 10,000 Tons of batteries per year.

India Lithium-Ion Battery Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India lithium-ion battery market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type, power capacity, and application.

Analysis by Product Type:

• Lithium Cobalt Oxide
• Lithium Iron Phosphate
• Lithium Nickel Manganese Cobalt
• Lithium Manganese Oxide
• Others (Li-ion Nickel Cobalt Aluminium Oxide and Li-ion Titanate Oxide)

Lithium cobalt oxide (LiCoO2) is the most widely used cathode materials for lithium-ion batteries mainly because of its amplified energy density, making it ideal for compact and high-performance applications. In the Indian market, LiCoO2 is predominantly leveraged in consumer electronics, typically encompassing smartphones, laptops, and portable devices, where lightweight and high energy output are crucial. Its relatively higher cost compared to other materials like lithium iron phosphate (LiFePO4) is offset by its superior performance, particularly in terms of longevity and charge retention. With India’s growing demand for mobile technology, the use of lithium cobalt oxide is anticipated to rise, driven by the heightening consumption of smartphones and other personal gadgets. Furthermore, as India looks to bolster its lithium-ion battery manufacturing capabilities, LiCoO2 will remain a key material due to its unmatched energy capacity and efficiency in powering modern electronics.

Analysis by Power Capacity:

• 0 to 3000mAh
• 3000mAh to 10000mAh
• 10000mAh to 60000mAh
• More than 60000mAh

Lithium cobalt oxide (LiCoO2) is the most widely used cathode materials for lithium-ion batteries mainly because of its amplified energy density, making it ideal for compact and high-performance applications. In the Indian market, LiCoO2 is predominantly leveraged in consumer electronics, typically encompassing smartphones, laptops, and portable devices, where lightweight and high energy output are crucial. Its relatively higher cost compared to other materials like lithium iron phosphate (LiFePO4) is offset by its superior performance, particularly in terms of longevity and charge retention. With India’s growing demand for mobile technology, the use of lithium cobalt oxide is anticipated to rise, driven by the heightening consumption of smartphones and other personal gadgets. Furthermore, as India looks to bolster its lithium-ion battery manufacturing capabilities, LiCoO2 will remain a key material due to its unmatched energy capacity and efficiency in powering modern electronics.

Analysis by Power Capacity:

• 0 to 3000mAh
• 3000mAh to 10000mAh
• 10000mAh to 60000mAh
• More than 60000mAh

Batteries with 3000mAh to 10000mAh range of power capacities are emerging as a leading segment of lithium-ion battery market in India. These mid-range to high-capacity batteries are widely used in both EVs and consumer electronics, offering a balanced combination of performance and compactness. In consumer electronics, devices like smartphones, tablets, and laptops increasingly rely on batteries within this power range, providing sufficient capacity for extended usage while maintaining portability. In the EV sector, the adoption of 3000mAh to 10000mAh range of batteries is also on the rise, particularly in electric two-wheelers and lower-range electric vehicles, aligning with India’s push for sustainable mobility solutions. The growing focus on battery storage systems for renewable energy further strengthens this segment, offering both scalability and efficiency for off-grid solutions and grid stabilization.

Analysis by Application:

• Consumer Electronics
• Electric Vehicles
• Energy Storage
• Others

Consumer electronics account for the largest India lithium-ion battery market share by application. The surging demand for portable, high-performance devices, including smartphones, laptops, wearables, and power banks, drives the substantial need for lithium-ion batteries. India’s expanding digital ecosystem, fueled by increasing smartphone penetration, internet access, and digital content consumption, has created a notable uptick in the requirement for lithium-ion batteries in consumer electronics. Additionally, as consumer preferences shift towards longer-lasting, fast-charging devices, lithium-ion technology continues to evolve, offering superior energy efficiency and compactness. With technological advancements and rising disposable incomes, the consumer electronics market in India is anticipated to sustain its dominance as the key contributor to the lithium-ion battery sector, maintaining a dominant share of market revenues. As India moves towards a more connected, tech-driven future, demand for energy-dense, portable battery solutions will only continue to increase.

Regional Analysis:

• North India
• West and Central India
• South India
• East India

North India is the dominant region in the lithium-ion battery market across India, primarily due to its established manufacturing infrastructure and strategic proximity to key raw materials, encompassing graphite, cobalt, and lithium. For instance, as per industry reports, 20 blocks of strategic and crucial minerals, encompassing two blocks of lithium, one of them in Jammu and Kashmir, were auctioned to significantly advance the mining process during 2023. In addition, India is planning to auction 15 offshore mineral blocks for mining in March 2024. Moreover, the region's robust industrial base, with prominent hubs in states like Uttar Pradesh, Haryana, and Punjab, supports the accelerating requirement from electric vehicle (EV) manufacturers and renewable energy projects. Additionally, government initiatives, including the FAME scheme, have accelerated investments in the region, making it a critical center for battery production and innovation.

Competitive Landscape:

The competitive landscape is exhibited by the establishment of both established global players and emerging domestic manufacturers. Key international firms dominate the market with advanced technologies and large-scale production capabilities. However, Indian companies are also making significant strides, supported by government incentives and a growing local demand for renewable energy services and EVs. The market is highly competitive, with companies focusing on technological advancements, cost reduction, and strategic partnerships to maintain a strong market position. For instance, in February 2025, MTOW Mobility Private Limited and Eastman New Energy Private Limited Ltd. signed an MoU to form an alliance for the manufacturing as well as implementation of lithium-ion battery technology for the Indian EVs market.

The report provides a comprehensive analysis of the competitive landscape in the India lithium-ion battery market with detailed profiles of all major companies.

Latest News and Developments:

• In December 2024, Hyundai Motor India Ltd. announced partnership with Exide Energy Solutions Ltd. The agreement focuses on producing and supplying lithium-iron-phosphate (LFP) battery cells for Hyundai’s electric vehicles targeting the Indian market. This partnership enables Hyundai to localize battery sourcing, enhancing cost competitiveness and supporting India’s carbon-neutrality goals, making it the first Indian automaker to use locally manufactured battery cells.
• In August 2024, Sanvaru Technology, an India-based lithium-ion battery provider, and LICO Materials entered into a tactical collaboration for the recycling of lithium batteries. This partnership targets to boost sustainability in electric mobility segment and facilitate a circular economy for these batteries.
• In August 2024, TATA Motors Ltd. announced an alliance with Octillion Power Systems India Private Limited to proliferate the battery sourcing for its EV models. Under this partnership, TATA's latest SUV model Curvv coupe will be integrated with Octillion's lithium-ion battery.
• In March 2024, Panasonic Group announced plans to form a strategic partnership with Indian Oil Corporation Ltd. for the production of cylindrical lithium-ion batteries. This move is incentivized by the projected elevation in battery demand for both energy storage systems and three- as well as two-wheel vehicles.

India Lithium-Ion Battery Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India lithium-ion battery market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India lithium-ion battery market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India lithium-ion battery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.