Li-ion battery market to attract Rs 75,000 crore investment by 2030: ICRA – EQ
In Short : According to ICRA, India’s Li-ion battery market is expected to attract investments worth ₹75,000 crore by 2030. Driven by rising demand for electric vehicles (EVs), energy storage, and renewable integration, the market is set for rapid growth. This investment surge will boost domestic manufacturing, reduce import dependence, and support India’s clean energy and electric mobility goals.
In Detail : ICRA recently estimated that the lithium-ion (Li-ion) battery industry in India would attract investments to the tune of Rs 75,000 crore by 2030 and more than 150 GWh of capacity for battery cell production.
The introduction of new models, increasing consumer awareness, and policies of the government have been contributing to the growth in the EV landscape of the country. There is also a mounting emphasis on local production since the overall cost of EVs is estimated to have a 35-40 per cent dependency on battery cells.
Current dependence on battery imports
India still relies heavily on imported battery cells, with local businesses mostly involved in battery pack assembly. The Indian manufacturers are only into the assembly of battery packs.
According to the estimation of the country’s Li-ion battery cells, the demand may reach 11-13 GWhs by FY2025, and in the very next five years, it will rise to 60-65 GWhs. The requirement for these batteries is expected in stationary applications, besides the electric vehicles.
Challenges
Risks still arise from uncertainties about raw material procurement, technology dependability, and investment returns. Furthermore, there is still a lack of infrastructure development for battery recycling. However, the country is lowering its reliance on imports and encouraging a local EV battery ecosystem with the help of policy and growing private sector involvement.
