Supercharged Growth: EVs Ignite a Lithium-Ion Gold Rush in India

India's electric vehicle (EV) revolution is accelerating, with a new industry report projecting a staggering 48% compound annual growth rate (CAGR) in lithium-ion battery (LiB) demand from the EV space until 2030. This demand is expected to drive the overall LiB demand in India to 115 gigawatt-hours (GWh) by the end of the decade, positioning India as a true player in the global battery market.

 

Key Highlights

The Explosive Growth Induced by EVs

LiB demand from EVs will increase at a 48% CAGR between 2025 and 2030, well ahead of consumer electronics (3% CAGR) and stationary storage (14% CAGR) growth.

 

Government Policy Push:

Ambitious Net-Zero targets, production-linked incentive (PLI) for battery manufacturing, and regulatory push for battery recycling are propelling the industry.

 

Scale-Up Manufacturing:

Indigenous cell production capacity is anticipated to reach 220 GWh by 2030, with industry leaders such as Ola Electric, Reliance New Energy Solar, and Rajesh Exports already utilizing PLI incentives for 40 GWh capacity.

 

Critical Material Challenge:

India continues to be highly import-dependent for critical battery materials—lithium, cobalt, nickel, and manganese—with estimated import exposure likely to surpass $5 billion by 2030.

 

Recycling Opportunity:

The recycling economy is still in its infancy, but presents a $3.5 billion untapped potential to reduce reliance on imports and environmental impact.

 

Environmental & Economic Impact

End-of-life battery management and circular economy initiatives are becoming more relevant as LiB waste is piling up with demand.

 

Industry Outlook

With EVs driving historic LiB demand, India's battery sector is at the crossroads. While government policies and carbon pledges are driving the growth, building a robust local supply chain and recycling infrastructure will be critical in an attempt to make this energy sustainable and India's clean energy future secure. 

 

Source: Economic Times Auto, Moneycontrol, Business Standard, Times of India.