India Advanced Battery Market - Strategic Insights and Forecasts (2025-2030)

Description

India Advanced Battery Market is anticipated to expand at a high CAGR over the forecast period.

India Advanced Battery Market Key Highlights

• The Government of India’s Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage acts as the primary catalyst, targeting the installation of 50 GWh of domestic battery manufacturing capacity to localize the supply chain.
• Electric Vehicles (EVs) constitute the dominant growth driver, projected to account for approximately 90% of the total Lithium-ion (Li-ion) battery market expansion in India by 2030, rising from a 2.3 GWh market in 2020–2021 to 104 GWh.
• The domestic advanced battery supply chain faces significant import dependence, with India sourcing nearly all the raw materials for Li-ion batteries, and China and Hong Kong supplying over 70% of its requirements, underscoring a major geopolitical and economic constraint.
• Energy Storage Systems (ESS), particularly utility-scale storage mandated by the Ministry of Power’s Energy Storage Obligation (ESO), are becoming a critical secondary demand pillar, translating to a requirement of approximately 327 GWh of storage capacity by 2030.

The advanced battery market in India is in a pivotal transitional phase, fundamentally driven by the national imperative for energy security and a decarbonized transportation sector. This market, which encompasses Li-ion, Lead-acid, and emerging chemistries, is shifting rapidly from traditional automotive and consumer electronics applications toward high-growth, high-capacity segments. Government-led policy interventions are explicitly reshaping industrial strategy, focusing on backward integration and indigenous cell manufacturing to mitigate global supply chain vulnerabilities and the substantial import bill associated with advanced battery components. The dual thrust of rapid electric vehicle adoption and the mandatory integration of energy storage with renewable energy projects establishes a concrete, quantifiable demand trajectory that is rapidly maturing the entire ecosystem, requiring a concurrent expansion of domestic manufacturing and a concerted effort to manage raw material dependency.

India Advanced Battery Market Analysis

• Growth Drivers

The Production Linked Incentive (PLI) Scheme is the most significant growth catalyst, directly propelling investment in large-scale battery cell manufacturing. This policy creates a localized supply mandate, thereby increasing the domestic demand for advanced battery production capacity. Concurrently, the electrification mandate in the automotive sector, driven by automakers like Tata Motors achieving early market dominance, directly converts vehicle sales into battery demand. Tata Motors' dominant share, which accounted for 42% of all battery electric vehicle (BEV) sales in the first quarter of 2025, translates immediately into volume orders for high-density battery packs. Finally, the Energy Storage Obligation (ESO) mandates specific percentages of renewable energy consumption to be paired with storage, creating a structural and guaranteed demand floor for utility-scale battery solutions. Each driver converts policy and commercial success into direct, measurable demand for advanced battery cells and packs.

• Challenges and Opportunities

The primary challenge is the deep structural dependence on imports for critical raw materials such as lithium, cobalt, and nickel, and for advanced cell components, which exposes the market to geopolitical risks and commodity price volatility. This supply chain fragility acts as a cost headwind, dampening the affordability imperative for end-user segments like EVs. The market opportunity, however, resides in Second Life Battery (SLB) applications and recycling, which offers a pathway to resource efficiency and reduced environmental impact. Establishing clarity in regulations and developing a functional traceability system for used batteries can unlock the commercial viability of SLBs for residential backup systems and telecom towers, which will create a new, high-growth demand stream for repurposing services and prolonging the useful life of existing battery assets.

• Raw Material and Pricing Analysis

The advanced battery market, particularly for Li-ion technology, is fundamentally constrained by the high import dependence of key raw materials. India imports nearly all necessary minerals, with a disproportionate reliance on a single region for supply. This external dependency introduces extreme volatility to battery pack pricing, as the cost of the final product is directly correlated with global commodity price fluctuations for materials like lithium and nickel. The lack of domestic processing and refining capabilities means that localization efforts face significant challenges beyond cell assembly. While global Li-ion battery prices have historically dropped due to economies of scale, the recent volatility and the absence of a localized mineral supply chain for India represent a major constraint on achieving consistent cost reduction and ensuring energy security.

• Supply Chain Analysis

The global supply chain for advanced batteries is fundamentally Asia-centric, with China dominating both raw material processing and precursor/component manufacturing. India's supply chain is an extension of this global dependence, characterized by a lack of backward integration. Key dependencies involve cathode and anode active materials, as well as separators and electrolytes. Logistical complexities stem from the global sourcing of these critical components, requiring complex, risk-prone international transport, which inflates manufacturing costs and lead times for domestic cell assemblers. The Production Linked Incentive (PLI) scheme aims to shift this dependency by incentivizing local value addition in cell components, but substantial localization progress is still pending, highlighting a persistent gap between policy aspiration and on-ground production.

Government Regulations

In-Depth Segment Analysis

• By Technology: Lithium-ion Batteries (Li-ion)

The dominance of Lithium-ion batteries stems from a confluence of high energy density, declining costs, and technological maturity, making it the primary chemistry for high-growth applications like electric vehicles and grid-scale storage. The growth driver is fundamentally rooted in the performance imperative of the end-use application. In the automotive sector, high energy density translates directly into the non-negotiable consumer demand for increased vehicle range and reduced vehicle weight, which only Li-ion can reliably provide at scale. This performance feature makes Li-ion the default choice for BEVs, which are projected to constitute the majority of advanced battery demand. In energy storage, the necessity is driven by the round-trip efficiency and scalability required for utility-scale integration of intermittent renewable sources. The continuous, significant price drop observed since 2010—exceeding 90% in some estimates—is a powerful secondary driver, pushing Li-ion's cost-competitiveness to the point where it is now viable for stationary applications, a segment historically dominated by lead-acid batteries. However, the need for Li-ion specifically creates a simultaneous, inverse demand for a robust recycling infrastructure as end-of-life battery waste is projected to rise significantly, creating a new, specialized demand stream for resource recovery and second-life solutions.

• By Application: Electric Vehicles (EVs)

The Electric Vehicle (EV) segment is the single most aggressive demand engine for the Indian advanced battery market, predominantly for high-capacity Li-ion solutions. The requirement is not generic but is specifically defined by the scale and velocity of adoption within the light-duty vehicle segment. The market, exemplified by the strong sales performance of domestic players, saw an EV sales share of 3% of all new light-duty vehicles (LDVs) in the first half of 2025. This sales volume translates directly to substantial order books for advanced battery packs, as each BEV requires a large-format, high-voltage battery system. The need for advanced batteries is further amplified by the specific nature of India's EV market, where Battery Electric Vehicles (BEVs) constitute nearly all EV sales, unlike other global markets where plug-in hybrid electric vehicles (PHEVs) hold a higher share. This BEV-centricity means a near-total dependency on high-energy-density batteries, maximizing the pull for Li-ion technology. The market's future demand is structurally tied to the automaker's dominance: an automaker's control of 42% of the BEV market translates into a direct, continuous bulk need for battery cells and packs to sustain production volumes. Furthermore, the long-term sustainability of this demand is intrinsically linked to the parallel development of local charging infrastructure—a key enabler that converts consumer interest into confirmed vehicle purchases, thus confirming the underlying battery demand.

Competitive Environment and Analysis

The Indian advanced battery market presents a nuanced competitive landscape, where traditional domestic players in the lead-acid space intersect with major global Li-ion players and emerging local manufacturers spurred by the PLI scheme. The competition is segment-specific, with a significant shift in focus from established players towards the high-value, high-growth Li-ion cell manufacturing.

• Exide Industries Ltd.

Exide Industries Ltd. is a dominant legacy player, traditionally known for its strong position in the lead-acid battery segment for automotive, industrial, and invertor applications. The company’s strategic positioning is now marked by a critical pivot toward Advanced Chemistry Cells (ACC), recognizing the irreversible market shift toward Li-ion technology. The company has secured incentives under the Production Linked Incentive (PLI) scheme, signaling its intent to transition from being primarily a battery assembler to a large-scale, indigenous Li-ion cell manufacturer. This move is a strategic imperative to protect its long-term relevance and capture the burgeoning demand from the Electric Vehicle and Energy Storage Systems segments.

• Amara Raja Batteries Ltd.

Amara Raja Batteries Ltd. holds a robust market position, especially in the automotive aftermarket and industrial applications. Like its primary domestic competitor, Amara Raja is executing a strategic reorientation to capture the ACC opportunity, having been selected as a beneficiary under the PLI-ACC scheme. The company’s focus is on leveraging its established brand trust and distribution network while building new capabilities in Li-ion cell technology. A key aspect of its strategy involves its engagement with the circular economy for batteries, specifically in recycling, where the company is focused on realizing predictable economic returns from the regulated recycling of Li-ion batteries. This diversification into the end-of-life value chain positions it to capture value beyond primary manufacturing.

• Contemporary Amperex Technology Co. Limited (CATL)

CATL, a global leader, represents the significant international competitive pressure. While their primary manufacturing is outside India, their influence is felt through supplying key global original equipment manufacturers (OEMs) and their technological leadership, particularly in advanced Li-ion chemistries. CATL's strategic positioning is characterized by unmatched economies of scale and a vast research and development (R&D) portfolio, setting the global benchmark for cost and performance. The company's presence in the Indian market, primarily through supply contracts with automotive and ESS players, challenges domestic manufacturers to rapidly scale production and innovation to remain competitive on both cost and technology fronts.

Recent Market Developments

• October 2025: Tamil Nadu Green Energy unveiled an ambitious plan to establish India's largest 2,500 MWh Battery Energy Storage System (BESS). This utility-scale project aims to strengthen the state grid by storing surplus solar and wind power, ensuring reliable, round-the-clock power availability for peak demand periods, and attracting private investment in storage technology.
• September 2025: Ashok Leyland announced a major ?5,000 crore investment over 7-10 years to build a domestic advanced battery ecosystem. The initiative includes a strategic, long-term partnership with China's CALB Group for technology transfer, localized manufacturing, and establishing a Global Centre of Excellence for research and development.

India Advanced Battery Market Segmentation

BY TECHNOLOGY

• Lithium-ion Batteries
• Lead-acid Batteries
• Solid-state Batteries
• Nickel-metal Hydride (NiMH) Batteries
• Flow Batteries
• Sodium-ion Batteries
• Others

BY CAPACITY

• Low Capacity (<50 Ah)
• Medium Capacity (50-200 Ah)
• High Capacity (>200 Ah)

BY MATERIAL

• Cathode Material
• Anode Material
• Others

BY APPLICATION

• Automotive
  • Electric Vehicles
  • Hybrid Electric Vehicles
  • Plug-in Hybrid Electric Vehicles
  • Energy Storage Systems
• Residential
  • Commercial & Industrial
  • Utility-scale
• Consumer Electronics
• Industrial
  • Motive Power
  • Stationary
  • Medical
  • Aerospace & Defense
  • Others

BY SALES CHANNEL

• OEM
• Aftermarket

Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK

5. INDIA ADVANCED BATTERY MARKET BY TECHNOLOGY

5.1. Introduction

5.2. Lithium-ion Batteries

5.3. Lead-acid Batteries

5.4. Solid-state Batteries

5.5. Nickel-metal Hydride (NiMH) Batteries

5.6. Flow Batteries

5.7. Sodium-ion Batteries

5.8. Others

6. INDIA ADVANCED BATTERY MARKET BY CAPACITY

6.1. Introduction

6.2. Low Capacity (<50 Ah)

6.3. Medium Capacity (50-200 Ah)

6.4. High Capacity (>200 Ah)

7. INDIA ADVANCED BATTERY MARKET BY MATERIAL

7.1. Introduction

7.2. Cathode Material

7.3. Anode Material

7.4. Others

8. INDIA ADVANCED BATTERY MARKET BY APPLICATION

8.1. Introduction

8.2. Automotive

8.2.1. Electric Vehicles

8.2.2. Hybrid Electric Vehicles

8.2.3. Plug-in Hybrid Electric Vehicles

8.3. Energy Storage Systems

8.3.1. Residential

8.3.2. Commercial & Industrial

8.3.3. Utility-scale

8.4. Consumer Electronics

8.5. Industrial

8.5.1. Motive Power

8.5.2. Stationary

8.6. Medical

8.7. Aerospace & Defense

8.8. Others

9. INDIA ADVANCED BATTERY MARKET BY SALES CHANNEL

9.1. Introduction

9.2. OEM

9.3. Aftermarket

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Exide Industries Ltd.

11.2. Amara Raja Batteries Ltd.

11.3. Luminous Power Technologies Pvt. Ltd.

11.4. Okaya Power Pvt. Ltd.

11.5. GS Yuasa Corporation

11.6. LG Energy Solution Ltd.

11.7. BYD Company Limited

11.8. Panasonic Holdings Corporation

11.9. Contemporary Amperex Technology Co. Limited (CATL)

11.10. Tesla, Inc.

12. APPENDIX

12.1. Currency

12.2. Assumptions

12.3. Base and Forecast Years Timeline

12.4. Key benefits for the stakeholders

12.5. Research Methodology 

12.6. Abbreviations 

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Exide Industries Ltd.

Amara Raja Batteries Ltd.

Luminous Power Technologies Pvt. Ltd.

Okaya Power Pvt. Ltd.

GS Yuasa Corporation

LG Energy Solution Ltd.

BYD Company Limited

Panasonic Holdings Corporation

Contemporary Amperex Technology Co. Limited (CATL)

Tesla, Inc.

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