Lithium-Ion Battery Market in India

Lithium-Ion Battery Market in India

Market Insights:

A lithium-ion battery is an innovative rechargeable and reusable power source that uses lithium ions in its electrochemistry. The adoption of EVs in India is anticipated to increase rapidly due to the country's growing need for clean energy which ensures the growth of the lithium-ion battery market in India. The government has plans to achieve a target of 30% electric vehicle adoption by 2030, powered primarily by the electrification of two-wheeler, three-wheeler, and commercial vehicles in the country. India has introduced the Li-Rack battery, which is a medium-sized lithium-ion battery system made in India for multi-family houses, commercial applications, and projects with demanding storage needs.

Impact of COVID-19:

Before the COVID-19 outbreak, the demand for electric bikes was high, mainly driven by policy measures introduced by the government to encourage the electrification of vehicles and reduce pollution, which left a significant impact on the lithium-ion battery market indirectly. After the lockdown was eased, the production of lithium-ion batteries has been significantly improving in India as many companies are increasing their production capacity.

Market Influencers:

Key growth drivers of the market:

• Since the COVID-19-induced lockdown, India's demand for lithium-ion batteries has increased due to the rise in the popularity of electric vehicles (EVs), which are one of the main factors propelling the growth of the lithium-ion market. EVs run on batteries and their charging costs are significantly lower than those of fuel-powered vehicles
• Because lithium batteries can be charged quickly, businesses are adopting Li-Ion battery-based equipment because one lithium battery can run a forklift for multiple shifts before needing to be replaced.

• The absence of appropriate charging infrastructure for electric vehicles throughout the nation, particularly in semi-urban and rural areas, has impeded the expansion of the lithium-ion battery market
• In the meantime, the government is supporting the expansion of the infrastructure for charging stations in India, where electric vehicles are becoming more and more popular.
• The main raw elements required to make the cathode, which costs 35% more than a cell and 10% more than an EV overall, are cobalt, nickel, lithium, and manganese. Unfortunately, India does not have a significant supply of these basic minerals.