India Rechargeable Battery Market Outlook to 2030

India Rechargeable Battery Market Overview

• The India rechargeable battery market is valued at USD 7.3 billion, based on a five-year historical analysis. This market has been driven by the growing demand for electric vehicles (EVs), increased use of portable electronics, and the expansion of renewable energy projects that require energy storage solutions. The Indian government's push for renewable energy adoption, alongside its ambitious plans for electric mobility, has further fueled the market's growth. Battery manufacturing incentives and policy-driven initiatives for clean energy storage systems have helped solidify the industry's importance.
• The market dominance is primarily concentrated in urban centers such as Delhi, Mumbai, and Bengaluru, where the demand for electric vehicles and consumer electronics is significantly higher. These cities lead in the adoption of new technologies due to their higher disposable income, urbanization, and availability of charging infrastructure. Furthermore, government policies such as subsidies on electric vehicles and renewable energy projects are more easily implemented and accessed in these urban hubs, reinforcing their dominance.
• The Indian governments PLI scheme for advanced chemistry cell (ACC) batteries is a major regulatory initiative, with USD 2.5 billion allocated for domestic battery production. This policy is designed to reduce reliance on imports and create over 50 GWh of battery manufacturing capacity by 2025. The PLI scheme supports local battery manufacturers, reducing costs and encouraging further investments in the sector.

India Rechargeable Battery Market Segmentation

The India rechargeable battery market is segmented by battery type and by application.

• By Battery Type: The market is segmented by battery type into lithium-ion (Li-ion), nickel-metal hydride (NiMH), lead-acid, and solid-state batteries. Lithium-ion batteries dominate the market because of their extensive use in electric vehicles and consumer electronics. These batteries are favored for their high energy density, longer lifespan, and ability to be recharged multiple times, making them ideal for high-drain applications like EVs and smartphones. As the demand for electric mobility rises, lithium-ion batteries are positioned to maintain their lead in the rechargeable battery segment.
• By Application: The market is also segmented by application into electric vehicles (EVs), consumer electronics, industrial equipment, renewable energy storage, and defense. Electric vehicles (EVs) have the highest market share due to Indias government-backed initiatives to promote electric mobility, reducing carbon emissions and reliance on fossil fuels. The governments policy measures, such as tax rebates on EVs and the construction of EV charging infrastructure, have significantly propelled this sub-segment. EVs are seen as a crucial part of the national strategy for cleaner transportation, further elevating the demand for rechargeable batteries.

India Rechargeable Battery Market Competitive Landscape

The India rechargeable battery market is dominated by a few key players, including local manufacturers like Exide Industries Ltd. and Amara Raja Batteries, alongside global giants such as LG Chem Ltd. and Panasonic Corporation. These companies leverage their technological advancements, scale of production, and established distribution networks to maintain a strong market position. The competitive landscape is shaped by these companies ability to produce at scale while innovating in battery chemistries and energy storage solutions.

India Rechargeable Battery Market Analysis

Growth Drivers

• Rise in Renewable Energy Projects: India has seen a significant surge in renewable energy capacity, reaching 175 GW by 2023, with 50 GW coming from solar and wind energy projects. The National Institute of Solar Energy (NISE) aims to add another 60 GW of solar capacity by 2025. This rise in renewable energy initiatives is creating a demand for efficient energy storage systems, which is fueling the growth of the rechargeable battery market, especially for grid stability and energy storage projects. Batteries are increasingly critical for energy storage solutions tied to these projects, positioning India as a growing hub for battery production.
• Increasing Demand for Electric Vehicles: The Indian governments push for electric vehicles (EVs) aims to have 30% of vehicles on the road as electric by 2030. In 2023, the country had over 1 million registered EVs, primarily in urban areas like Delhi, Maharashtra, and Karnataka. This rapid increase is escalating the demand for rechargeable lithium-ion batteries. With major automakers like Tata Motors producing EVs locally, battery demand has increased significantly, supported by the EV charging infrastructure expansion to over 2,900 charging stations nationwide. This provides a strong foundation for the rechargeable battery market.
• Government Subsidies and Initiatives: Government schemes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) and Production Linked Incentive (PLI) scheme have provided a direct boost to battery manufacturing. For example, the PLI scheme allocates USD 2.5 billion to promote the manufacturing of advanced chemistry cells (ACCs) and batteries, with plans to establish 50 GWh of domestic battery manufacturing capacity. This will help reduce dependence on imports and strengthen India's battery manufacturing ecosystem, offering significant support for the rechargeable battery market

Market Challenges

• Dependence on Imported Raw Materials: India heavily relies on imports for raw materials like lithium, cobalt, and nickel, which are essential for battery production. In 2023, over 60% of the lithium required was imported from countries like Australia and Chile, making supply chains vulnerable to global price fluctuations and geopolitical tensions. This dependency poses a significant challenge for the rechargeable battery market, increasing costs and complicating manufacturing scalability.
• Recycling and Disposal Challenges: India faces significant challenges in recycling lithium-ion batteries, with less than 5% of used batteries being recycled in 2023. Proper disposal of these batteries is crucial, given the environmental risks associated with hazardous materials. The Ministry of Environment, Forest and Climate Change (MoEFCC) has introduced e-waste regulations, but the lack of efficient recycling infrastructure hampers the growth of the rechargeable battery market. This presents a challenge to sustainability efforts and increases pressure on manufacturers to create eco-friendly solutions.

India Rechargeable Battery Market Future Outlook

Over the next five years, the India rechargeable battery market is expected to exhibit substantial growth driven by increased government backing, technological advancements in battery chemistry, and the expanding electric vehicle market. The Indian government's push towards cleaner energy solutions, including renewable energy storage and electric vehicle adoption, will further enhance market demand. The anticipated development of new battery technologies, such as solid-state batteries, will also offer significant opportunities for market expansion.

Future Market Opportunities

• Expansion of Indias Solar and Wind Projects: India's focus on renewable energy has led to large-scale solar and wind projects, with a projected addition of 30 GW from renewable sources between 2022-2025. With storage being essential to these projects, demand for high-capacity rechargeable batteries is rapidly increasing. The government's National Solar Mission, which aims for 100 GW of solar capacity, offers opportunities for battery manufacturers to provide energy storage solutions that are critical for grid stability and efficiency.
• Increasing Focus on Domestic Battery Manufacturing (Make in India): The "Make in India" initiative encourages local manufacturing of rechargeable batteries. By 2023, India has seen over 10 battery manufacturing units set up under the PLI scheme, with an additional capacity of 50 GWh expected by 2025. These units are aimed at reducing dependence on imports and establishing India as a hub for global battery exports. The governments initiatives to promote local manufacturing are positioning the country for robust growth in the rechargeable battery market.