07/04/2025
Battery technology for electric vehicles (EVs) has rapidly evolved, resulting in significant advancements in energy density, charging speed, cost reduction, safety, and overall performance. Electric vehicles worldwide have access to various battery technologies.
The Indian EV battery market holds tremendous potential and is projected to reach a value of $300 billion by 2030. India has the opportunity to capture approximately 80 percent of the domestic EV battery market. According to the Vahan Dashboard data from April 2023, more than 1.1 million new EVs, including 2-wheelers, 3-wheelers, and 4-wheelers, have been registered in India.
To achieve the Indian government’s Production Linked Incentive (PLI) target of establishing a 50 GWh lithium-ion cell manufacturing capacity by 2025, investments worth approximately Rs 33,750 crore (approximately $4.5 billion) are necessary in India.
Tata Group has signed a Memorandum of Understanding (MoU) with the Gujarat state government to construct a $1.6 billion electric-vehicle battery plant in Sanand, Gujarat. The plant is expected to create employment opportunities for 13,000 individuals and initially have a manufacturing capacity of 20 gigawatt hours, with the potential for future expansion.
Amara Raja Batteries plans to invest over Rs 9,500 crore in Telangana over the course of 10 years for phased manufacturing of Li-ion batteries. The first phase, spanning 2-3 years, will involve an investment of Rs 1,500-2,000 crore and establish a plant with a 16 GWh capacity for lithium cell production.
Exide Industries, a prominent automotive and industrial battery maker, aims to invest Rs 6,000 crore in the next 8-10 years to establish a 12 GWh lithium-ion cell manufacturing unit in Karnataka. The initial phase, with a capacity of 6 GWh, is expected to be completed within 27-30 months.
Lucas TVS Ltd. and 24M Technologies Inc., based in the U.S., are collaborating to establish a giga lithium-ion battery factory near Chennai with an investment of Rs 2,500 crore. The factory will have a capacity of 10 GWh, which will be achieved in two stages, and commercial production is set to begin in the second half of 2023.
Indian battery manufacturers actively partner with global technology companies to leverage their expertise and enhance domestic battery production capabilities. Indian universities, research institutions, and private companies are also engaged in developing advanced battery technologies, including solid-state batteries and alternative materials, to improve performance and sustainability.
In conclusion, India’s EV battery market is poised for significant growth, driven by advancements in battery technology and the increasing adoption of electric vehicles. With the government’s focus on domestic manufacturing and substantial investments from industry leaders, India has a promising opportunity to establish itself as a global leader in the EV battery industry.