India Lithium-ion Battery Market, By Region, Competition, Forecast & Opportunities, 2021-2031F

The India Lithium-ion Battery Market was valued at USD 375 Million in 2025, and is expected to reach USD 640 Million by 2031, rising at a CAGR of 9.17%. Lithium-ion batteries, known for their high energy density, lightweight design, and low self-discharge rate, are widely used in electric vehicles (EVs), consumer electronics, and renewable energy systems.

These rechargeable power sources operate by transferring lithium ions between anode and cathode during charge-discharge cycles. Their increasing demand stems from their superior efficiency, compact size, and long cycle life. Despite concerns about overheating and safety, advancements in battery management systems and safer materials are mitigating risks. With applications spanning EVs to grid storage, lithium-ion batteries are pivotal to India’s clean energy transition and electrification goals.

Key Market Drivers

Rapid Growth of Electric Vehicles (EVs) in India

A major force driving the lithium-ion battery market in India is the rapid expansion of electric vehicles (EVs). Growing environmental concerns and government-led efforts to curb emissions are prompting a shift toward clean mobility. Lithium-ion batteries, favored for their high energy density and faster recharge capabilities, have become the standard power source for EVs. Policies like the FAME scheme, along with tax incentives, subsidies, and improved EV infrastructure, are creating a supportive environment. In addition, soaring fuel costs and declining battery prices are making EVs a viable alternative. Automobile giants and startups are increasingly launching electric models - from two-wheelers to cars - relying heavily on lithium-ion technology to meet evolving consumer demand.

Key Market Challenges

Supply Chain Dependence and Raw Material Scarcity

The Indian lithium-ion battery sector is challenged by its reliance on imported raw materials, such as lithium, cobalt, nickel, and manganese, which are crucial for production. With limited domestic reserves and refining capacity, India depends on international suppliers, exposing the market to risks from global price fluctuations and geopolitical issues. This reliance affects manufacturing costs and delivery timelines, undermining competitiveness. Furthermore, processing these minerals into battery-grade materials requires advanced technology and significant investment, areas where India is still developing. Without robust domestic infrastructure, the country may face difficulties in securing stable and cost-effective inputs, which is essential for scaling battery production sustainably.

Key Market Trends

Emergence of Gigafactories and Local Manufacturing

An emerging trend in India's lithium-ion battery sector is the development of gigafactories and a focus on domestic manufacturing. With strategic sectors like EVs and renewable energy relying on battery storage, both public and private stakeholders are investing in large-scale battery production facilities. These gigafactories aim to reduce import dependence and enhance cost-efficiency through localized production. Aligned with initiatives like “Make in India” and “Atmanirbhar Bharat,” these factories not only cut logistical costs but also enable customization for Indian market needs. Beyond manufacturing, they stimulate job creation, innovation, and the development of supporting industries. India’s growing domestic production capability positions it to emerge as a significant player in the global battery supply chain.

Key Market Players

• Contemporary Amperex Technology Co. Limited (CATL)
• LG Energy Solution Ltd.
• Panasonic Holdings Corporation
• BYD Company Limited
• Samsung SDI Co. Ltd.
• SK On Co. Ltd.
• Toshiba Corporation
• A123 Systems LLC

Report Scope:

In this report, the India Lithium-ion Battery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Lithium-ion Battery Market, By Type:

• Lithium Cobalt Oxide
• Lithium Iron Phosphate
• Lithium Nickel Cobalt Aluminum Oxide
• Lithium Manganese Oxide
• Lithium Titanate
• Lithium Nickel Manganese Cobalt

India Lithium-ion Battery Market, By Capacity:

• 0-3,000 mAh
• 3,000-10,000 mAh
• 10,000-60,000 mAh
• 60,000 mAh & Above

India Lithium-ion Battery Market, By Vertical:

• Consumer Electronics
• Automotive
• Aerospace
• Marine
• Medical
• Industrial
• Power
• Telecommunications
• Others

India Lithium-ion Battery Market, By Region:

• South India
• North India
• West India
• East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Lithium-ion Battery Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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