India’s EV Revolution: Lithium-Ion Battery Manufacturing Set to Soar Beyond 150 GWh by 2030 – EQ
In Short : India’s electric vehicle (EV) industry is set to witness over 150 GWh of lithium-ion (Li-ion) battery cell manufacturing capacity by 2030 , according to ICRA . This surge is driven by rising EV adoption, government incentives, and localization efforts. Investments in gigafactories and advanced battery technology are expected to strengthen India’s energy security and reduce reliance on imports.
In Detail : India’s electric vehicle (EV) industry is on track to achieve over 150 GWh of lithium-ion (Li-ion) battery cell manufacturing capacity by 2030, according to a report by ICRA. This growth is fueled by increasing EV adoption, supportive government policies, and the push for local manufacturing. The expansion of battery production is crucial for reducing import dependence and strengthening the domestic supply chain.
The Indian government has introduced several incentives, such as the Production-Linked Incentive (PLI) scheme, to encourage investment in battery manufacturing. These initiatives aim to attract both global and domestic companies to set up gigafactories, boosting large-scale cell production. As a result, India is expected to emerge as a key player in the global battery supply chain over the next decade.
With rising demand for EVs across two-wheelers, passenger cars, and commercial vehicles, the need for efficient and cost-effective battery solutions is becoming more critical. The localization of cell manufacturing will help bring down battery costs, making EVs more affordable for consumers. Additionally, advancements in battery technology, including solid-state and sodium-ion batteries, could further enhance the industry’s growth prospects.
Investments in research and development are also playing a significant role in improving battery efficiency and sustainability. Companies are focusing on recycling and second-life battery applications to minimize environmental impact. These efforts align with India’s broader goal of achieving carbon neutrality and reducing dependence on fossil fuels.
Infrastructure development, such as charging networks and energy storage solutions, is another critical factor supporting the EV ecosystem. The integration of renewable energy with battery storage systems is expected to create a more stable and sustainable power supply. This will not only benefit the EV sector but also contribute to overall grid resilience.
Despite the positive outlook, challenges such as supply chain constraints, raw material availability, and high initial investment costs remain. Addressing these issues will require coordinated efforts from the government, industry stakeholders, and research institutions. With strategic planning and continuous innovation, India is well-positioned to become a global hub for Li-ion battery manufacturing by 2030.
