India’s lithium-ion battery market could boom by 2030, driven by electric vehicles and clean energy initiatives.
India’s lithium-ion battery market could boom by 2030, driven by electric vehicles and clean energy initiatives.
According to a joint report by the India Cellular and Electronics Association (ICEA) and Accenture, India’s lithium-ion battery (LiB) market is set to jump 40 per cent over the next five years.
It is expected to be driven by increasing demand from electric vehicles (EVs), consumer electronics, and stationary storage.
The report forecasts LiB demand to reach 115 GWh by 2030, with EVs leading at a 48 per cent compound annual growth rate. Stationary storage is expected to grow at 14 per cent annually, while consumer electronics will see a modest 3 per cent rise, supporting India’s clean energy goals.
India’s push towards its net zero targets under the COP26 “Panchamrit” pledge, aiming for 500 GW of non-fossil electricity and a 45 per cent reduction in GDP emissions intensity by 2030, fuels this demand.
Government initiatives like the Critical Minerals Mission and trade duty exemptions promote domestic battery production and sustainable practices.
Despite these efforts, India relies heavily on imported LiBs due to limited local cell manufacturing and mining infrastructure.
The report estimates a demand for over 250 kilo tonnes of critical materials like lithium, cobalt, and nickel by 2030, leading to an import exposure exceeding ₹41,800 crore.
Also, Battery Waste Management Rules, introduced in 2022 by the Central Pollution Control Board, mandate responsible battery disposal and recycling. However, around 39 per cent of end-of-life consumer electronics batteries remain uncollected, posing environmental risks.
Therefore, scaling local LiB production is crucial for India to meet its 2030 goal of reducing emissions by 1 billion tonnes and achieving net-zero by 2070.
Addressing import dependency and improving recycling will be key to managing the supply chain and environmental impact.
Also read: MediaTek Projects 20 Percent of its Automotive Chips Will Be Used in India by 2030
